The document discusses the growth of online video and video advertising. Some key points: - Online video viewing is growing rapidly, with over 40% of online videos exceeding 2 billion views per day. - Major online video brands like YouTube, VEVO, and Facebook reach tens of millions of unique viewers each month. - Video ads are common, making up around 16% of all videos viewed. Major brands like YouTube see billions of video ad impressions and minutes per month. - Popular streaming services like YouTube, Hulu, and Pandora offer video and audio advertising opportunities targeted to their large, engaged audiences. Pricing ranges from $10-40 per thousand impressions.

1. Streaming Content
Kate Kozlowski
Seda Gokoglu
Vanessa Interrante
Ying_Chen_Chen

2. The growth of online video
178 MILLION U.S. Internet users
watched 33.2 BILLION online videos
2

3. 5.9 Billion 36% Growth
video ad impressions per month video ad impressions per month
2.4 Billion 30% Growth
video ad minutes per month video ad minutes per month
148 Million 8% Growth
Viewers exposed to video ads Viewers exposed to video ads
(Source: comScore Video Metrix) 3

4. Video advertising reach
83%
video ad impressions per month
70%
total web
49%
total population
Linear video ads are served
across the web in a month reach
the average video viewer 40 times
(Source: comScore Video Metrix) 4

5. Ad percentage
16.4% of videos viewed are ads
16%
84%
Ads
Content
(Source: comScore Video Metrix) 5

6. 6

7. 40% of online videos
Exceeds 2 BILLION VIEWS a day
Nearly double the prime-time Audience of all 3 major U.S. broadcast networks combined
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8. 8

9. Target
(Source: YouTube 2009) 9

10. Incidence of ever watching a video on YouTube
Profile of YouTube usage at least once per week
(Source: Entertainment Media Research 2010) 10

11. 11

12. Top Online Video Brands by Unique Viewers (February 2011, U.S.)
Video Brand Unique Viewers (000)
YouTube 107,953
VEVO 32,287
Facebook 31,698
Yahoo! 23,418
MSN/Windows Live/Bing 14,916
Hulu 12,793
AOL Media Network 9,863
The CollegeHumor Network 9,342
Fox Interactive Media 8,061
Netflix 6,518
(Source: The Nielsen Company) 12

13. Why advertise on YouTube?
• Audience size
• Time spent
• Purchase intent
• Low pricing for value
• Ease of use
• Google Adwords integration
• Diverse campaign formats scaled to budget
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14. Advertising opportunities
Every budget: Promoted videos
14

15. Advertising opportunities
Small and mid-range budget
Companion ads with InVideo overlay
15

16. Advertising opportunities
Small and mid-range budget
InStream Ads (Pre-roll)
16

17. Advertising opportunities
Small and mid-range budget
Banner ads (click-to-play)
17

18. Advertising opportunities
Large budget ($200,000+)
Masthead unit (24 hours on YouTube Homepage)
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19. Advertising opportunities
Large budget ($200,000+)
Custom brand channels
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20. Cost
• Requires a $50,000 spend within 90 days
• On brand channels, advertisers must spend $250,000
across Google and YouTube, including $100,000 or
more on YouTube only
• A YouTube home page roadblock is a $100,000 per
day flat fee plus a $100,000 incremental spend on
Google and YouTube within 90 days
20

21. Cost
• PPC (Pay-per-Click)
• CPC (Cost-per-Click)
• CPM (Cost-per-Thousand)
21

22. % Interested
in seeing product
demo/review for
(Source: Entertainment Media Research 2010) 22

23. 23

24. Background
• Launched on March 2007
• Owned by NBC & disney
• Revenue generated through advertising (41%)
• Offers premium content to consumers
• When, where & how they want it
• Limited commercial interruption
http://www.hulu.com/about
24

25. Target
Men & Women 18-49
http://www.hulu.com/about/media_faq#background
25

26. Competitors
26

27. #9 in Unique Video Viewers
http://wwwery.com/12820-online-video-february-stats.html 27

28. #1 by video ads viewed
http://wwwery.com/12820-online-video-february-stats.html 28

29. Advertising opportunities
• Standard video ad package
• Branded Slate / Premium Branded Slate
• Branded Player Skin / Premium Player Skin
• Branded Entertainment Selector
• Ad selector
• Product Interstitial
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
29

30. Advertising opportunities
Standard video ad package
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
30

31. Advertising opportunities
Branded / Premium Slate
Customer title card – 7-10 second
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
31

32. Advertising opportunities
Branded / Player skin
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
32

33. Advertising opportunities
Branded entertainment selector
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
33

34. Advertising opportunities
Ad selector – You Choose
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
34

35. Advertising opportunities
Product Interstitals
http://assets.huluim.com/downloads/hulu_ad_specs.pdf
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36. Cost
• Based on CPM
• For 30 second spot
• Reflective of supply and demand
• (fewer commercials = less supply = higher rates)
Estimated CPM Rates
Medium CPM
WSJ.com $75
Hulu $40
Yahoo!/MSN $20
Prime-time Network TV $18
Cable TV $12
YouTube/ad networks $10
Banner ads <$5
36

37. What it means for media planners?
• High frequency
• High ad impressions
• Increased brand recognition / brand recall
37

38. Who would benefit?
• Companies trying to increase brand recognition/recall
• Long form content
• Interactive products / ads
• Acts as a reminder
http://thedigitalists.com/2009/11/13/nytimes-blesses-high-online-video-cpms-whatever-they-are/ 38

39. 39

40. Background
• Founded 2000
• Mobile app launched June 2007 – 65 million users daily
• Streaming music service – associated with various costs
• Music royalties paid on every song
• Advertising helps cover cost
• Pandora 1 – no advertisements, $36/year
40

41. Target
• Smartphone users
• More affluent than US population as whole (index of
160 for HHI $100K plus)
• More educated (index of 127)
• More likely to be employed (index of 126)
• Listen to content at work
• Mobile phone usage for music is more popular with
people in their 20s and is skewed slightly male
41

42. Competitors
42

43. Advertising opportunities
• Typical stations play 9 minutes of ads per hour (can be
as high as 20) – low clutter means high recall
• Pandora has 3 audio ads or less per hour
• Banner ads only appear when a phone is not locked
• Run banner, audio, and video
• Information not made available to the public, but
Pandora works with companies with budgets from $5K
43

44. 44

45. 45

46. Who would benefit most?
• Local impact: like newspaper ands terrestrial radio, ads
can be targeted by regions either through mobile carrier
data or user-supplied data like zip codes
46

47. Strategic thinking
47
source: Pandora White Paper

48. Strategic thinking
source: Pandora White Paper 48

49. Strategic thinking
• Demographic info is required to be supplied to Pandora when
creating an account (age, sex, etc.)
• Device used to access Pandora app
• iPhones (age 25-34)
• iTouch (kids&teens through college students – especially heavy gamers)
• Blackberry (age 35-54 – more business oriented)
• Android (scewing more male and younger than iPhones)
• Genre – type of music listened to can give psychographic,
mood, lifestyle or interest information
• Geographic – Ads can be targeted by location, though at the
moment, that targeting is based on the zipcode users provide
to the service as opposed to the physical location or IP
address
comScore monthly OEM Reports 49

50. 50

51. Background
• Sirius - 1990
• XM - 1992
• July 28, 2008, the stations merged, bringing together
18.5 million subscribers
www.siriusxm.com
51

52. Background
Packages cost 12.95-16.99/month
www.siriusxm.com
52

53. www.siriusxm.com
53

54. What is it?
180 channels
• 71 commercial free
• 40 spots
• 20 talk/entertainment
• 6 comedy
• 20 news and issues
• 12 traffic, weather
• 12 other
www.siriusxm.com
54

55. Advertising opportunities
• 100% coverage coast-to-coast
• Exclusive content
• Creative ideas
• Niche targeted
• 25.5 million listeners
• Live-reads by A-list
www.siriusxm.com
55

56. Target
• Major cities
• Affluent and well educated
• Skewed male
• 76.1% 35+, 48.5% 45+
http://radio.about.com/od/satelliteradio/a/aa051505a.htm
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57. Competitors
www.siriusxm.com
57

58. Current advertisers
www.siriusxm.com
58

59. Cost
SiriusXM build custom advertising platforms and
does not publicly share advertising prices
2010 net advertising revenue: $64,517,000
http://investor.sirius.com/releasedetail.cfm?ReleaseID=550111
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60. What it means for media planners?
• National, not local buys
• Niche targeted
• Custom creative platforms
• High recall, less clutter
60

61. Who would benefit?
• National, niche brands
• Brands with similar values as SiriusXM celebrity DJs
61