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into woodsYouTube and other social media channels could make TV buys less critical, as Millennial consumers move to over-the-top viewing.

Strike Social, a preferred marketing developer for YouTube platforms, took a look at the YouTube presences of three recent blockbusters: Unbroken, Into the Woods and Gambler. It found that, not only did these films garner millions of YouTube views but, more important, a substantial percentage of those views were earned. The company estimates that these studios spent just $345,000 collectively to promote their trailers on YouTube. Strike Social’s platform can pull aggregate spend data, total views and total earned views, as well as separating them.

“The numbers are really impressive,” says Pat McKenna, CEO of Strike Social. During 2014, the top seven studios spent, in aggregate, $36.5 million for TrueView ads to promote film trailers and other assets that were posted to YouTube. Those paid promotions generated 1.9 billion views. According to McKenna, “They paid for 880 million views and got over a billion earned views. That’s more than a one-to-one ratio, which is off the charts.”

As consumers increasingly view over-the-top (OTT) content, could YouTube ads eat into TV and other ad budgets for movie marketing?

Changing views

According to the Motion Picture Association of America’s 2013 Theatrical Market Statistics, the prime movie-going segments are the same segments that are increasingly consuming video online, over the top and on mobile. In its latest report, the two largest groups of frequent moviegoers were 18 to 24 and 25 to 39. In 2013, Latinos made up 17 percent of the population but accounted for 32 percent of frequent moviegoers (that is, folks who went to more than one movie a month. The share of movie-going in the 18- to 24-year-old segment has been trending upward and, in 2013, was at its highest level since the MPAA survey began.

And what do we know about these groups? They over-index for mobile and they are more likely to engage in OTT viewing. According to Nielsen, Americans aged 18 to 24 watched around 2.5 hours of TV a day, a year-over-year decline of more than four hours per week.

Movie studios are on top of the YouTube trend. On the other hand, as of 2013, movie trailers and teaser videos uploaded on YouTube in 2013 had been watched 10 billion times, according to YouTube, which doesn’t have more recent stats.

Combine this demographic shift with the high ROI of promoted YouTube videos, and you might wonder whether TV spending is going to take a hit.

Gilbert Davila
Gilbert Davila

Not so fast, says Gilbert Dávila, president and CEO of Dávila Multicultural Insights. He comes down on the more traditional side, insisting, “In order to reach today’s dynamic consumer, it’s important to use a mix of traditional advertising, digital marketing and social media.” He acknowledges that You Tube marketing and other social media channels can be a great tool to generate awareness for upcoming films and help reach a younger demographic. Nevertheless, he says, “Social channels are only one component of a complete media plan — and TV remains a principal media vehicle to reach a broad audience for most major films.”

However, while movie marketers are clearly on YouTube in a big way, McKenna thinks there’s a much larger opportunity that they’re missing. He thinks it’s partly because busy marketers are doing things as usual, and partly because the media spends look different.

Efficient spends

Compared to the CPMS for AdWords of five to ten cents per thousand, TrueView ads look expensive, McKenna notes. TrueView ads are sold on a cost-per-view basis of five to 10 cents per view, with a guaranteed view. Marketers comparing five-cent CPMs to 10 cents per view may think TrueView is prohibitively expensive. But, McKenna says, “When you look at the efficiencies of the ads, it’s off the charts.”

By dividing the $36.5 million spent by 1.9 billion views, he calculates the actual effective CPV for TrueView ads is 1.9 cents.

The reason for the efficiencies of these ads, he says is, “You pay for a certain number of views, but then, if the content is good, people share it, so you get another view at no cost. The more people share a piece of content, the lower the effective CPV. This works well for the studios because, generally speaking, people like to share movie trailers.”

You pay for a certain number of views, but then, if the content is good, people share it, so you get another view at no cost.

Before the Strike Social analysis, McKenna adds, “Even I didn’t know they were doing that well — and I’m confident that the studios don’t know.”

McKenna thinks the mindset will change as media buyers and movie marketers grok the numbers. “The education process will accelerate here, and studios will have time to take a step back [and reevaluate their methods]. Media agencies are educating the client, too. It’s hard to leave a way that you’ve been doing something for so long,” he says.

Best YouTube Marketing practices

McKenna points out that the studios that are most successful at pulling earned views are not only posting trailers; they’re posting snippets from movies, creating character stories online and releasing other bonus content. Disney, he notes, is especially masterful at this, releasing as many as 30 different videos in three to six months of promotion for a film.

Share content, not ads

Dávila shares other best practices for movie marketers: “Share content, not ads,” he says. “For the most part, YouTube users do not want to watch ads; therefore, the best way to reach potential moviegoers through YouTube is through highly creative and engaging videos.”

Each should include an accurate description and a link to a landing page designed to meet campaign goals, for example, the movie’s microsite or Facebook page. Finally, Dávila says, think multiscreen: “When releasing videos, make sure that all content is optimized for mobile viewing.”

sands-floor-sm As weary ad execs wandered home from CES 2015, we took a look at what this mother of all consumer electronics shows revealed about the future of advertising. We identified five trends that we think will matter for advertisers in the years to come, and checked in with three smart executives to get their thoughts.

1. Connected Watches

They show no sign of going away, with twice as many wearable exhibits as at CES 2014. But ads on them? Really? Probably, according to Jeremy Sigel, director of mobile, North America, for digital agency Essence. “Similar to mainstream mobile ad formats, it is easy to envision a full-screen interstitial ad or even a 15-second video on a smartwatch,” Sigel says. He points out that while a watch face may seem small, the dimensions would be similar to a Facebook mobile newsfeed ad. “While smartwatch ads may start there, the bigger opportunity will be highly contextual push notifications that strive to be additive, and branded applications that are inherently helpful to keep a brand top-of-mind.”

smart-watches-sm

If you think people won’t accept ads on their smartwatches or fitness devices, just remember that in the early days of mobile, people said the same thing about their phones. In fact, some of us, ahem, are old enough to remember when advertising on the World Wide Web was frowned upon.

2. OTT TV:

Dish’s SlingTV streaming service gave another push to over-the-top video, enabling subscribers to watch live TV, video-on-demand and 12 cable channels on a variety of devices. It also could open the way for better targeting and tracking of TV ads. Sling did not immediately respond to an email about its ad plans, but third-party ad networks may start salivating now.

Pat McKenna, CEO of Strike Social, says Sling and other OTT services will help marketers get a more accurate comparison of the performance of video ads on TV and digital. Strike Social is a third-party TrueView advertising, targeting and analytics platform that tracks video-ad performance across YouTube, Twitter and Facebook. The key to achieving this, according to McKenna, is for OTT services to provide APIs and consistent data to allow ad servers and analytics platforms to consume their data. “The opportunity for us is to marry performance data across all platforms, and then provide the report to [advertisers],” he says.

David Santana, art director at global, digital marketing agency Deep Focus, says that Sling TV’s $20 monthly subscription, no-contract deal will be attractive to Hispanic consumers, who are gravitating to other companies like T-Mobile that don’t demand customers lock themselves in. He says a bigger win will be if Sling TV develops content packages for Hispanics, the way that DirectTV does. (In December DirecTV introduced OTT Video Service Yaveo targeting the Hispanic population.) “The opportunity to tailor content packages to this market is important to see it grow,” Santana concludes.

The opportunity to tailor content packages to this market is important to see it grow.

3. Connected and autonomous cars

Internet-connected cars have been around at least since BMW introduced ConnectedDrive in 2011 – and CES 2014 seemed to be the CES of the Car. This year, more than a dozen cars were on display, many of them highlighting current or concept connected-car technology. With Google powering or at least participating in several of these offerings, you have to wonder: Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls. There’s also a strong –someday – play for ads on the so-called infotainment screens, the ever-larger digital dashboard screens that show everything from what’s playing on the sound system to your navigation route to use Facebook.

[youtube https://www.youtube.com/watch?v=SyCox6In5bg&w=560&h=315]

How about sending the driver a McDonald’s coupon when she’s approaching the restaurant? Actually, TeleNav has been doing that since 2010. The problem has always been, and continues to be for now, getting enough scale to make it worthwhile for national advertisers to bother. Maybe someday …

Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls?

 

Nick Cannon playing virtual volleyball
Nick Cannon playing virtual volleyball

4. Virtual Reality

Volvo, Dos Equis, Marriott, HBO, Tourism Australia and a handful of movie marketers have already released branded apps. VR is cool and fun, but hampered by the need to use a headset. Joining the fray among the expensive and still-in-beta Oculus Rift and the adorably crafty – and cheap – Google Cardboard headsets, Avegant and Samsung demonstrated virtual reality at the show. In the short term, VR marketing will live at trade shows and special events, where staffers can be on hand to manage the hardware and software.

Deep Focus’ Santana gives kudos to Volvo for it’s VR campaign that sent consumers who registered a Google Cardboard viewer kit. “That make it inclusive,” he says. “You don’t need a lot of money or to be in a major market to experience virtual reality. That’s important for the Hispanic community.”

Eventually, Digital Agency Essence’s Sigel thinks, that these virtual-reality “experiences” could contain ad units, in much the same way ads have been inserted into TV broadcasts, as well as into video and console games. He gives the example of a VR experience that lets you sit court-side at an NBA game. “In addition to traditional signage, the t-shirts of patrons, concessions, chants from the crowd, a comment from a court-side celebrity and shouts from players may all be sellable units,” he says.

By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?

5. Big data gets ginormous with connected-everything

The Internet of Things was one of CES 2015’s Top Tech Trends, along with wearables and autonomous cars. All these devices will generate data either all the time or a lot of the time. Location-based data combined with behavioral and contextual data could make ad targeting incredibly more complex – and possibly better. The quantified self, continuously tracked by wearables, could alone generate unprecedented amounts of usable personal data. The possibilities – futuristic as they are – are fascinating. By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?  Would his anonymous personal profile include the information that he’s more likely to respond to ads 20 minutes after he’s completed a run? How about a tweet from New Belgium Brewing after that run? Now, that’s the future of advertising.

sands-floor-sm As weary ad execs wandered home from CES 2015, we took a look at what this mother of all consumer electronics shows revealed about the future of advertising. We identified five trends that we think will matter for advertisers in the years to come, and checked in with three smart executives to get their thoughts.

1. Connected Watches

They show no sign of going away, with twice as many wearable exhibits as at CES 2014. But ads on them? Really? Probably, according to Jeremy Sigel, director of mobile, North America, for digital agency Essence. “Similar to mainstream mobile ad formats, it is easy to envision a full-screen interstitial ad or even a 15-second video on a smartwatch,” Sigel says. He points out that while a watch face may seem small, the dimensions would be similar to a Facebook mobile newsfeed ad. “While smartwatch ads may start there, the bigger opportunity will be highly contextual push notifications that strive to be additive, and branded applications that are inherently helpful to keep a brand top-of-mind.”

smart-watches-sm

If you think people won’t accept ads on their smartwatches or fitness devices, just remember that in the early days of mobile, people said the same thing about their phones. In fact, some of us, ahem, are old enough to remember when advertising on the World Wide Web was frowned upon.

2. OTT TV:

Dish’s SlingTV streaming service gave another push to over-the-top video, enabling subscribers to watch live TV, video-on-demand and 12 cable channels on a variety of devices. It also could open the way for better targeting and tracking of TV ads. Sling did not immediately respond to an email about its ad plans, but third-party ad networks may start salivating now.

Pat McKenna, CEO of Strike Social, says Sling and other OTT services will help marketers get a more accurate comparison of the performance of video ads on TV and digital. Strike Social is a third-party TrueView advertising, targeting and analytics platform that tracks video-ad performance across YouTube, Twitter and Facebook. The key to achieving this, according to McKenna, is for OTT services to provide APIs and consistent data to allow ad servers and analytics platforms to consume their data. “The opportunity for us is to marry performance data across all platforms, and then provide the report to [advertisers],” he says.

David Santana, art director at global, digital marketing agency Deep Focus, says that Sling TV’s $20 monthly subscription, no-contract deal will be attractive to Hispanic consumers, who are gravitating to other companies like T-Mobile that don’t demand customers lock themselves in. He says a bigger win will be if Sling TV develops content packages for Hispanics, the way that DirectTV does. (In December DirecTV introduced OTT Video Service Yaveo targeting the Hispanic population.) “The opportunity to tailor content packages to this market is important to see it grow,” Santana concludes.

The opportunity to tailor content packages to this market is important to see it grow.

3. Connected and Autonomous Cars

Internet-connected cars have been around at least since BMW introduced ConnectedDrive in 2011 – and CES 2014 seemed to be the CES of the Car. This year, more than a dozen cars were on display, many of them highlighting current or concept connected-car technology. With Google powering or at least participating in several of these offerings, you have to wonder: Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls. There’s also a strong –someday – play for ads on the so-called infotainment screens, the ever-larger digital dashboard screens that show everything from what’s playing on the sound system to your navigation route to use Facebook.

[youtube https://www.youtube.com/watch?v=SyCox6In5bg&w=560&h=315]

How about sending the driver a McDonald’s coupon when she’s approaching the restaurant? Actually, TeleNav has been doing that since 2010. The problem has always been, and continues to be for now, getting enough scale to make it worthwhile for national advertisers to bother. Maybe someday …

Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls?
Nick Cannon playing virtual volleyball
Nick Cannon playing virtual volleyball

4. Virtual Reality

Volvo, Dos Equis, Marriott, HBO, Tourism Australia and a handful of movie marketers have already released branded apps. VR is cool and fun, but hampered by the need to use a headset. Joining the fray among the expensive and still-in-beta Oculus Rift and the adorably crafty – and cheap – Google Cardboard headsets, Avegant and Samsung demonstrated virtual reality at the show. In the short term, VR marketing will live at trade shows and special events, where staffers can be on hand to manage the hardware and software.

Deep Focus’ Santana gives kudos to Volvo for it’s VR campaign that sent consumers who registered a Google Cardboard viewer kit. “That make it inclusive,” he says. “You don’t need a lot of money or to be in a major market to experience virtual reality. That’s important for the Hispanic community.”

Eventually, Digital Agency Essence’s Sigel thinks, that these virtual-reality “experiences” could contain ad units, in much the same way ads have been inserted into TV broadcasts, as well as into video and console games. He gives the example of a VR experience that lets you sit court-side at an NBA game. “In addition to traditional signage, the t-shirts of patrons, concessions, chants from the crowd, a comment from a court-side celebrity and shouts from players may all be sellable units,” he says.

By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?

5. Big Data Gets Ginormous with Connected-Everything

The Internet of Things was one of CES 2015’s Top Tech Trends, along with wearables and autonomous cars. All these devices will generate data either all the time or a lot of the time. Location-based data combined with behavioral and contextual data could make ad targeting incredibly more complex – and possibly better. The quantified self, continuously tracked by wearables, could alone generate unprecedented amounts of usable personal data. The possibilities – futuristic as they are – are fascinating. By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?  Would his anonymous personal profile include the information that he’s more likely to respond to ads 20 minutes after he’s completed a run? How about a tweet from New Belgium Brewing after that run? Now, that’s the future of advertising.

Yesterday morning, during a Time Warner investor meeting, Home Box Office Chairman and CEO Richard Pepler said that HBO will launch a stand-alone, over-the-top service that would allow consumers to watch HBO content without having a cable subscription – and let HBO reap what he characterized as hundreds of millions of dollars in additional revenue.

hbo latinoHe said HBO will sell stand-alone services in the United States and two other countries, with the aim of expanding eventually to every nation that it currently reaches via cable.

Whether HBO Latino will be part of this initiative or whether either of the two non-U.S. launch countries will be in Latin America are still to be determined. A spokesperson for HBO Latino told Portada, “At this time we are not elaborating beyond the statement that was issued today.”

Overall I think that a streaming HBO Latino has potential. We know that Hispanics are entertainment-hungry and digitally savvy, and brands are eager to engage with them through new channels.

Karina Dobarro, vice president and managing director of multicultural brand strategy at Horizon Media, notes that HBO will not necessarily include ads in its over-the-top offering; it may use a Netflix-like subscription model instead

But let’s play what-if, as long as HBO is thinking about shaking things up

Anel Hooper, associate media director for Bromley Communications, thinks this is a definite win for consumers. “There are a lot of cord-cutters out there. They’re trying to find other sources to watch television programs,” she says. While Netflix doesn’t include advertising, she points out that Hulu does – and advertising could be part of HBO’s plan to earn millions more dollars.

Maria Lopez Knowles
Maria Lopez Knowles

This move absolutely makes sense for consumers, and therefore for HBO, according to Maria Lopez-Knowles, CMO of Pulpo Media. She says, “Fragmented media and distributed content is the new reality, especially among Hispanics and the Hispanic Millennial in particular. Consumers now own both the remote control and the Programming Executive title. They choose to consume content and stream programming when they want to and in their own device of choice.” Based on this, she adds, advertising on an HBO OTT service makes perfect sense. “It’s a great idea whose time has come,” she says. And, of course, it makes even better sense for advertisers that want to reach highly mobile Hispanics.

Whether Bromley recommends advertising on streaming video to clients depends on the demographic they’re trying to reach, according to Hooper. “If the target demographic is using their smartphones and tablets and streaming, then yes, we have recommended that to our clients.”

Lee Vann, Captura Group
Lee Vann, Captura Group

Lee Vann, CEO of Captura Group, says, “Overall I think that a streaming HBO Latino has potential.  We know that Hispanics are entertainment-hungry and digitally savvy, and brands are eager to engage with them through new channels.  They key will be for HBO to curate and produce content that appeals to Hispanics in a relevant and authentic way.  If they can accomplish this, Hispanics will watch, and brands will follow.”

Not all advertisers may be ready to jump on board an over-the-top HBO, Lopez-Knowles says. “But the more progressive advertisers are certainly starting to understand that we’ve entered a brave, new world.”