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The Role of Video 

in the TV Purchase
Process
EXECUTIVE SUMMARY


                        Video’s Role in the Consumer Journey
                        Video is effective throughout the consumer journey by
                        introducing new products, functioning as an effective
                        research tool, and spurring shoppers to make in-store and
                        online purchases.


                        Insights and Recommendations
                        •  Use video to empower consumers and drive sales.
                        •  Discoverability is key; distribute videos wherever
                           consumers watch video and research/shop.
                        •  Run best screen available campaigns to reach
                           consumers on all devices and increase impact.




Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   2
METHODOLOGY

                         Goal is to better understand how consumers use video to
                         research and buy tech products (TVs, Smartphones, tablets)

                         Using Compete’s panel of 2MM U.S. consumers, Compete
                         measured consumer behavior within the industry

                         Compete conducted an online survey using panelists who
                         researched or shopped for tech products online within the past 6
                         months.

                                 •     Surveys were fielded between Sept 6th to Oct 13th

                                 •     1186 respondents who qualified for the survey after
                                       indicating they had both a) shopped / purchased a
                                       tablet/TV/smartphone and b) watched some form of
                                       online video in the past 6 months

                         Compete observed clickstream behavior from its panel

                                 •     ‘product videos’ are defined as product videos watched
                                       on yt.com, retailer sites, oem sites

                                 •     products analyzed: TVs




Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.       3
                                                                                                    3
The consumer
decision journey
42% of TV shoppers                                                                                              Video is effective
 used TV videos while                                                                                            throughout
 researching and                                                                                                 the consumer
 shopping, of which                                                                                              journey
 81% watch for more
 than 10 minutes
Compete Survey: V4 - Thinking about the <Product> you recently researched or shopped for, approximately how much time did you spend, overall, watching videos online about
<Product>.? Please select one answer only. (n=512)
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                    5
THE CONSUMER JOURNEY



                                         TV Product feature videos
                                         and reviews help
                            Active       consumers narrow
                          Evaluation     choices.




     Initial
  Consideration         L O YA LT Y                           Purchase


    Video helps
    consumers learn                                                  Video drives
    about TV products                                                TV purchase
                                                                     activities.

                         Post-Purchase
                          Experience      Most consumers
                                          will use TV video
                                          again




                                                                                    6
DEVICE DEMOCRACY
TV shoppers conduct research on three
screens, generally opting for the best
screen available




 Devices used to watch TV videos                                                      Locations shoppers use mobile to
                                                                                      research tech products
                                                       89%                                                                                                     64%
                                                                                                             while at home
                                                                                                                                                             55%
                                                                                                                                                      40%
                                                                                                              while at work
                                                                                                                                                        47%
                                                                                  while in a restaurant, coffee shop,                                     50%
                                                                                                                  etc                              33%
                               27%                                                                                                                   43%
      14%                                                                              while shopping in a retail store
                                                                                                                                                  32%
                                                                                                                                      5%
                                                                                   during my commute to/from work
                                                                                                                                           15%
        tablet             mobile phone               computer
                                                                                                       tablet (n=74)           mobile phone (n=154)

  Compete Survey: M1 - Which of the following devices did you use to watch      Compete Survey: M3 - From which of the following locations did you use your mobile
  videos about <Product> while researching and shopping for <Product>? Please   phone / tablet while researching or shopping for <Product>? Please select all that
  select all that apply. (n=512)                                                apply.(n=74-154)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                            7
INITIAL CONSIDERATION
Video introduces TV products to shoppers with
over 83% of TV buyers visiting YouTube in the
two months leading up to purchase.




  After viewing TV videos…
  •  59% became interested in specific
     TV models
  •  61% introduced to TV brands not
     previously considered
  •  35% heard about the TV product
     for the first time




Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one
response for each statement. (n=512); Rows do not add to 100% because there was also a “No opinion” option, Compete clickstream data- viewers of TV videos
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                         8
ACTIVE EVALUATION
   Video helps TV buyers determine which
   products to buy.




                                                                                                After viewing TV videos…
                                                                                                •  70% learn more about specific TVs
                                                                                                •  66% narrow down options of TVs
                                                                                                •  45% talk to family/friends about
                                                                                                   TVs




Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one
response for each statement. (n=512); Rows do not add to 100% because there was also a “No opinion” option V9 - As a result of watching videos about <Product> online, which of the
following actions did you perform, if any? Please select all that apply. (n=205)
                                                                                                                                                                                      9
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.
ACTIVE EVALUATION
After viewing tech product videos on mobile
devices, shoppers are using mobile to research
further, making mobile a critical tool in evaluation.




 After viewing TV videos
 online…
 •  60% researched/shopped
    not while in store
 •  51% looked for
    promotions or coupons




 Compete Survey: V12 - Specifically, which of the following did you do on your
 mobile phone as a result of watching <Product> videos online? Please select all
 that apply. (n=86)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   10
MOMENT OF PURCHASE
 TV shoppers take action toward
 purchase after viewing TV videos




         visited a store that sells TVs                                                                61%

    visited a website that sells TVs                                                               55%
searched a store's inventory for a
                      specific TV                                                        39%

    visited a manfacturer's website                                                    36%


 Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 –
 Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                          11
MOMENT OF PURCHASE
Mobile is a key tool in driving the purchase
process and tech shoppers turn to mobile
after viewing tech videos




 After watching tech product videos
 online…
 •  72% looked up a store’s location on
    their mobile phone
 •  57% researched and shopped on
    mobile device while in retail store




 Compete Survey: V12 - Specifically, which of the following did you do on your mobile
 phone as a result of watching <Product> videos online? Please select all that apply.
 (n=86)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   12
POST-PURCHASE EXPERIENCE

68% of TV shoppers are likely
to watch videos again the next
time they are shopping for TVs


                                                                                        Videos can lead
                                                                                        consumers back for
                                                                                        their next purchase.



 Compete Survey: V15 - Using the scale below, how likely would you be to watch videos
 about Product> online the next time you are shopping for a <Product>?(n=512)
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                      13
KEY TAKEAWAYS

                             Video heightens every stage of the consumer
                             journey
                             Initial Consideration: Video helps consumers learn
                             about TV products

                             Active Evaluation: TV Product feature videos and
                             reviews help consumers narrow choices.

                             Purchase: Video drives TV purchase activities.
                             Loyalty & Post Purchase: Most consumers will use
                             TV product videos again
                             .




Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   14
Insights and
Recommendations
RECOMMENDATIONS




                                      Empower consumers and drive more
                              1       sales
                                      Make videos discoverable where
                              2       consumers watch video
                                      Implement best screen available
                              3       strategy




Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   16
EMPOWER CONSUMERS AND DRIVE MORE SALES
63% of viewers said videos were useful in the
purchase process and 61% visited a store as a
result of watching.




Types of product videos being watched by TV shoppers

    % of viewers                                                             Initial                     Active
                              Types of Videos watched                                                                             Purchase                    Loyalty
     watching                                                             Consideration                Evaluation

         39%               TV Ads through streaming video

         26%               Online advertisements

         40%               Professional reviews

                           Consumer Reviews/
         34%
                           Testimonials

         54%               Product feature videos

         32%               Consumer Generated videos

          7%               Repair footage

       Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 –
       Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282)
       Compete Survey: V6 - Which of the following types of videos about <Product> did you watch online while researching or shopping for <Product>? Please select
       all that apply. (n=512)
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                           17
EMPOWER CONSUMERS AND DRIVE MORE SALES
  Video is being under-utilized by brands.
  They should build video content to improve
  the customer experience.


  Many TV shoppers could not find
  what they needed…
  •  20% couldn’t find information
     about un-boxing a TV
                                                                                            Only 49% found
  •  15% couldn’t find professional                                                              everything
     reviews
  •  14% couldn’t find pricing
                                                                                                  they were
     information                                                                                looking for.
  •  11% couldn’t find customer
     testimonials
  •  8% couldn’t find product
     demonstrations

Compete Survey: V8 - What type of information, if
any, were you unable to find while researching video
(s) online about <Product>? Please select all that
apply. (n=512)                                                                                                 18
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.
MAKE VIDEOS DISCOVERABLE
Product videos lack discoverability: 49% of TV shoppers
aren’t aware that TV product videos exist online, but would
watch if they come across them in the research process.



                       websites used by TV buyers to watch
                                 product videos

                               retailer websites                                                          77%
                      manufacturer websites                                                     59%
 professional online <product> review                                          31%
                                  youtube.com                                28%
          shopping comparison websites                                      25%
                social networking websites                             17%
          newspaper/magazine websites                             9%
             other video sharing websites                        8%


Compete Survey: S7 Why is it that you did not view a video about <Product> while researching or shopping for <Product > in the past 6 months?
Compete Survey: V1 - Which of the following types of websites did you visit to watch videos about <Product> while researching or shopping for <Product>? Please select all that
apply. (n=112-155)
 Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                        19
MAKE VIDEOS DISCOVERABLE
Increase reach and discoverability by seeding product videos
where consumers are already watching. 83% of TV buyers visit
YouTube in the two months leading up to purchase.




       % of TV product video viewers who view YouTube
                    non-endemic content
 37%

       29%
             27%

                   18%
                         16%
                               13% 12%
                                         11% 10% 10%
                                                     9% 9% 8%
                                                                        5% 4%
                                                                                   2% 1%




Compete Clickstream data Q2 2011
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.   20
IMPLEMENT BEST SCREEN AVAILABLE STRATEGY
TV shoppers use a variety of devices and online
activities to research TVs. Brands will be most
effective by leveraging all of these opportunities.



                                                     Consumers employ a variety of research
                                                     activities and opt for the best screen available
                                                     •  15% of TV shoppers turn to mobile devices to
                                                        research after viewing videos.
                                                     •  27% of TV video viewers are watching on mobile
                                                        phones or tablets.
                                                     •  32% of TV video viewers are conducting TV
                                                        category searches on Google within a week of
                                                        viewing video
                                                     •  5% of TV video viewers are conducting TV
                                                        category searches on YouTube within a week of
                                                        viewing video
                                                      Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you
                                                      perform, if any? Please select all that apply. (n=512)
                                                      Compete Survey: M1 - Which of the following devices did you use to watch videos about <Product> while
                                                      researching and shopping for <Product>? Please select all that apply. (n=512)
                                                      Compete clickstream data Q2 2011
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                                                  21
I M P L E M E N T B E S T S C R E E N AVA I L A B L E S T R AT E G Y
In multiple case studies of mobile and desktop
campaigns, advertisers have seen better results
when integrating across all screens




                                                                      +48% recall
                                                                      +4 reach pts
                                                                      2x frequency
                                                                    source: Nielsen Multi-Screen Lab Study, Sept ‘11; Google Incremental Reach
                                                                    Preliminary Results from 6 US studies for total YT/GDN campaigns.
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.                                                        22

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2011 role video_tv_purchase

  • 1. The Role of Video 
 in the TV Purchase Process
  • 2. EXECUTIVE SUMMARY Video’s Role in the Consumer Journey Video is effective throughout the consumer journey by introducing new products, functioning as an effective research tool, and spurring shoppers to make in-store and online purchases. Insights and Recommendations •  Use video to empower consumers and drive sales. •  Discoverability is key; distribute videos wherever consumers watch video and research/shop. •  Run best screen available campaigns to reach consumers on all devices and increase impact. Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 2
  • 3. METHODOLOGY Goal is to better understand how consumers use video to research and buy tech products (TVs, Smartphones, tablets) Using Compete’s panel of 2MM U.S. consumers, Compete measured consumer behavior within the industry Compete conducted an online survey using panelists who researched or shopped for tech products online within the past 6 months. •  Surveys were fielded between Sept 6th to Oct 13th •  1186 respondents who qualified for the survey after indicating they had both a) shopped / purchased a tablet/TV/smartphone and b) watched some form of online video in the past 6 months Compete observed clickstream behavior from its panel •  ‘product videos’ are defined as product videos watched on yt.com, retailer sites, oem sites •  products analyzed: TVs Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 3 3
  • 5. 42% of TV shoppers Video is effective used TV videos while throughout researching and the consumer shopping, of which journey 81% watch for more than 10 minutes Compete Survey: V4 - Thinking about the <Product> you recently researched or shopped for, approximately how much time did you spend, overall, watching videos online about <Product>.? Please select one answer only. (n=512) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 5
  • 6. THE CONSUMER JOURNEY TV Product feature videos and reviews help Active consumers narrow Evaluation choices. Initial Consideration L O YA LT Y Purchase Video helps consumers learn Video drives about TV products TV purchase activities. Post-Purchase Experience Most consumers will use TV video again 6
  • 7. DEVICE DEMOCRACY TV shoppers conduct research on three screens, generally opting for the best screen available Devices used to watch TV videos Locations shoppers use mobile to research tech products 89% 64% while at home 55% 40% while at work 47% while in a restaurant, coffee shop, 50% etc 33% 27% 43% 14% while shopping in a retail store 32% 5% during my commute to/from work 15% tablet mobile phone computer tablet (n=74) mobile phone (n=154) Compete Survey: M1 - Which of the following devices did you use to watch Compete Survey: M3 - From which of the following locations did you use your mobile videos about <Product> while researching and shopping for <Product>? Please phone / tablet while researching or shopping for <Product>? Please select all that select all that apply. (n=512) apply.(n=74-154) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 7
  • 8. INITIAL CONSIDERATION Video introduces TV products to shoppers with over 83% of TV buyers visiting YouTube in the two months leading up to purchase. After viewing TV videos… •  59% became interested in specific TV models •  61% introduced to TV brands not previously considered •  35% heard about the TV product for the first time Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one response for each statement. (n=512); Rows do not add to 100% because there was also a “No opinion” option, Compete clickstream data- viewers of TV videos Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 8
  • 9. ACTIVE EVALUATION Video helps TV buyers determine which products to buy. After viewing TV videos… •  70% learn more about specific TVs •  66% narrow down options of TVs •  45% talk to family/friends about TVs Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one response for each statement. (n=512); Rows do not add to 100% because there was also a “No opinion” option V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) 9 Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.
  • 10. ACTIVE EVALUATION After viewing tech product videos on mobile devices, shoppers are using mobile to research further, making mobile a critical tool in evaluation. After viewing TV videos online… •  60% researched/shopped not while in store •  51% looked for promotions or coupons Compete Survey: V12 - Specifically, which of the following did you do on your mobile phone as a result of watching <Product> videos online? Please select all that apply. (n=86) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 10
  • 11. MOMENT OF PURCHASE TV shoppers take action toward purchase after viewing TV videos visited a store that sells TVs 61% visited a website that sells TVs 55% searched a store's inventory for a specific TV 39% visited a manfacturer's website 36% Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 – Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 11
  • 12. MOMENT OF PURCHASE Mobile is a key tool in driving the purchase process and tech shoppers turn to mobile after viewing tech videos After watching tech product videos online… •  72% looked up a store’s location on their mobile phone •  57% researched and shopped on mobile device while in retail store Compete Survey: V12 - Specifically, which of the following did you do on your mobile phone as a result of watching <Product> videos online? Please select all that apply. (n=86) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 12
  • 13. POST-PURCHASE EXPERIENCE 68% of TV shoppers are likely to watch videos again the next time they are shopping for TVs Videos can lead consumers back for their next purchase. Compete Survey: V15 - Using the scale below, how likely would you be to watch videos about Product> online the next time you are shopping for a <Product>?(n=512) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 13
  • 14. KEY TAKEAWAYS Video heightens every stage of the consumer journey Initial Consideration: Video helps consumers learn about TV products Active Evaluation: TV Product feature videos and reviews help consumers narrow choices. Purchase: Video drives TV purchase activities. Loyalty & Post Purchase: Most consumers will use TV product videos again . Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 14
  • 16. RECOMMENDATIONS Empower consumers and drive more 1 sales Make videos discoverable where 2 consumers watch video Implement best screen available 3 strategy Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 16
  • 17. EMPOWER CONSUMERS AND DRIVE MORE SALES 63% of viewers said videos were useful in the purchase process and 61% visited a store as a result of watching. Types of product videos being watched by TV shoppers % of viewers Initial Active Types of Videos watched Purchase Loyalty watching Consideration Evaluation 39% TV Ads through streaming video 26% Online advertisements 40% Professional reviews Consumer Reviews/ 34% Testimonials 54% Product feature videos 32% Consumer Generated videos 7% Repair footage Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 – Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282) Compete Survey: V6 - Which of the following types of videos about <Product> did you watch online while researching or shopping for <Product>? Please select all that apply. (n=512) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 17
  • 18. EMPOWER CONSUMERS AND DRIVE MORE SALES Video is being under-utilized by brands. They should build video content to improve the customer experience. Many TV shoppers could not find what they needed… •  20% couldn’t find information about un-boxing a TV Only 49% found •  15% couldn’t find professional everything reviews •  14% couldn’t find pricing they were information looking for. •  11% couldn’t find customer testimonials •  8% couldn’t find product demonstrations Compete Survey: V8 - What type of information, if any, were you unable to find while researching video (s) online about <Product>? Please select all that apply. (n=512) 18 Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.
  • 19. MAKE VIDEOS DISCOVERABLE Product videos lack discoverability: 49% of TV shoppers aren’t aware that TV product videos exist online, but would watch if they come across them in the research process. websites used by TV buyers to watch product videos retailer websites 77% manufacturer websites 59% professional online <product> review 31% youtube.com 28% shopping comparison websites 25% social networking websites 17% newspaper/magazine websites 9% other video sharing websites 8% Compete Survey: S7 Why is it that you did not view a video about <Product> while researching or shopping for <Product > in the past 6 months? Compete Survey: V1 - Which of the following types of websites did you visit to watch videos about <Product> while researching or shopping for <Product>? Please select all that apply. (n=112-155) Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 19
  • 20. MAKE VIDEOS DISCOVERABLE Increase reach and discoverability by seeding product videos where consumers are already watching. 83% of TV buyers visit YouTube in the two months leading up to purchase. % of TV product video viewers who view YouTube non-endemic content 37% 29% 27% 18% 16% 13% 12% 11% 10% 10% 9% 9% 8% 5% 4% 2% 1% Compete Clickstream data Q2 2011 Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 20
  • 21. IMPLEMENT BEST SCREEN AVAILABLE STRATEGY TV shoppers use a variety of devices and online activities to research TVs. Brands will be most effective by leveraging all of these opportunities. Consumers employ a variety of research activities and opt for the best screen available •  15% of TV shoppers turn to mobile devices to research after viewing videos. •  27% of TV video viewers are watching on mobile phones or tablets. •  32% of TV video viewers are conducting TV category searches on Google within a week of viewing video •  5% of TV video viewers are conducting TV category searches on YouTube within a week of viewing video Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=512) Compete Survey: M1 - Which of the following devices did you use to watch videos about <Product> while researching and shopping for <Product>? Please select all that apply. (n=512) Compete clickstream data Q2 2011 Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 21
  • 22. I M P L E M E N T B E S T S C R E E N AVA I L A B L E S T R AT E G Y In multiple case studies of mobile and desktop campaigns, advertisers have seen better results when integrating across all screens +48% recall +4 reach pts 2x frequency source: Nielsen Multi-Screen Lab Study, Sept ‘11; Google Incremental Reach Preliminary Results from 6 US studies for total YT/GDN campaigns. Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011. 22