Executive Summary: Online video at the tipping point and it sells!

Advertising Age (YouTube)

“We’re watching the tipping point occur right now and sweeping industry upheaval may come sooner and more dramatically than many imagine.” – Paul Sagan, CEO of Akamai

Retailers take note: Video sells

eMarketer / comScore

According to comScore, the number of online shoppers who watched retail videos grew 40% in a single year. Granted, the numbers come from a small base and most retailers have only just begun experimenting with online product videos, but early indications point to product videos becoming a powerful sales tool.

“Among the benefits of videos touted by Web retailers are a lower number of abandoned shopping carts, reduced return rates and higher sales,” says Jeffrey Grau, eMarketer senior analyst and author of the new report, Video Usage in E-Commerce: The Best Is Yet to Come. “And those are just some of the benefits.

“Once retailers build up the video content on their sites, they will focus on turning their video assets into customer acquisition tools by pushing video to other sites, such as affiliates, social networks and video-sharing destinations,” says Mr. Grau.

“Retailers will also place community elements around their videos to make it easy for consumers to upload them to social networks, blogs, bookmarking services or e-mails.”



BeetTV (YouTube)

“Exposure to online video advertising can lead to a 20-40 percent increase in buying a product or service.” – Gian Fulgoni, comScore Co-Founder and Chairman

Why you need to create video for the web

Econsultancy

Advertising revenue is down, newspapers are struggling and as the economy takes a downturn production costs are up, at the same time online readership and revenue continue to rise. So what’s the answer? Go where the eyes are – video is now a medium of conversation.

TV advertising is fleeting and expensive; after the cost of creating your media, you pay for your slot and when it’s gone it’s gone. Online video on the other hand, can be made at a fraction of the cost, and if you spread it intelligently it’s viewable forever.

Online video is also instantly global, searchable, on demand and with viewing stats that are easily measured.

Whether you want content for your website, to launch a brand or product, produce video news releases, or just show the human side of your organisation, you need to have a presence in the digital world and use online video.



BeetTV (YouTube)

While Google, Yahoo! and AOL are focused on advertising-based business models around online video, Microsoft is advancing into the area it knows the best; software and services.

Q&A on the opportunities offered by online video

Econsultancy

To get some front-line opinion of the marketplace, Econsultancy spoke to Nick Bell, co-founder of the up-and-coming interactive video platform, Quick.tv, about this complex and often overlooked marketing medium.

To cut straight to the chase: what’s happening in the online video marketplace?

Over the past few years, online video has seen huge growth in terms of both deployment and views, but also revenue generated. Publishers and retailers have realised that video is the most effective communication method, as demonstrated by the long dwell times and recollection statistics… but the cost of production is still high and the accountability of standard play/pause/stop video is still low.

However, the cost of content delivery continues to drop, making professional playout more affordable and new production technologies allow content to be created more affordably. But despite this, most professional online video is originally produced for offline distribution, which continues to hinder the market, as this content is then ‘re-versioned’ to be displayed in a smaller online window. This non interactive, linear content is completely at odds with the ethos of the internet.

Video is currently quite a difficult medium to engage users, do you think this will shift at all in the near future

I think video is THE most engaging medium, I think the problem is measuring engagement and creating accountable content with strong calls to actions embedded within video. The one problem at the moment is that in most cases, there is no way to directly link viewings to sales or any other consequential action, something which will change with interactive video and how it’s adopted as a marketing and sales channel.

What advice would you give to those considering video advertising?

Don’t just take an offline video and stick it on the internet. Until recently, there was a TV ad running on the homepage of a major financial institution, in which the call to action was to visit their homepage.

My advice is also to be clear about your objectives, whether advertising or otherwise: consider what footage you already have and whether a re-edit or more is needed. Then, make the clip web-ready to optimise engagement, response rates and accountability, through the interactive and dynamic features that are currently available. Finally, publish wisely and try not to become too complacent when you see the great results start coming through…

How to make online video grow

eMarketer / MAGNA

“We’re seeing right now for 2009 a growth of USD 699 million over USD 530 million last year. So that’s 32% growth this year. That’s good, all things considered. For 2010, it will reach USD 864 million, up 23.5%.” – Brian Wieser, Senior Vice President, Global Director of Forecasting at MAGNA, a division of Interpublic Group’s Mediabrands.


Related: Emirates Business 24|7

Internet TV gains ground in region

MBC Group and etisalat announced that more than 8 million videos have been viewed through internet TV platform on MBC’s Shahed Online by June 2009. The service was launched during Ramadan 2008.

MBC officials also conveyed that such a large hit in a short period of three quarters delivers a cost-affective medium for potential advertisers. The website hosted more than five million, five-second, pre-roll ads and hundreds of thousands of post-roll ads.

“Internet TV is a next-generation distribution channel, which has the capability to provide a global reach. Our Shahed Online service is a success story, which we can share with our advertising partners and provide a new and efficient way to implement their media strategies. These results show internet TV is a channel that has the power and ability to attract customers and build brand value.” said Dr. Ammar Bakkar, Group Director of New Media at MBC group.

Filed under: Research, Summaries , BeetTV, comScore, Econsultancy, eMarketer, Google Business, MAGNA, Microsoft, Online video, Quick.tv

Executive Summary: What is the most trusted form of advertising?

Business Intelligence Middle East / Nielsen

Personal recommendations are the most trusted medium.

Recommendations by personal acquaintances and opinions posted by consumers online are the most trusted forms of advertising globally, according to the latest twice-yearly Nielsen Global Online Consumer Survey of over 25,000 internet consumers from 50 countries.

The Nielsen survey, the largest of its kind, shows that nine in every 10 internet consumers worldwide (90%) trust recommendations from people they know, whilst seven in every 10 (70%) trust consumer opinions posted online.

In the U.A.E., the survey shows 95% of internet consumers trust recommendations from people they know, making word of mouth the most trusted medium.

Editorial content came in second place, with 84% of U.A.E. respondents trusting it completely or somewhat, ahead of newspaper ads (78%), brand websites (72% each), brand sponsorships (68%) and consumer opinions posted online (66%).

Magazine ads, billboards and other outdoor media, radio ads, ads before movies and on TV came behind online in the U.A.E. list.

Tahir Khalil, Head of Nielsen Online for MENA, said: “It is clear from the survey that online is a medium on the move and the trust levels in it as a category are building momentum, not only here in the UAE but also globally.”

Full article


eMarketer / Nielsen

What advertising do consumers trust?

Online advertising trust is on the rise worldwide. However, internet users trust some online media more than others. Seven in 10 users said they “completely” or “somewhat” trusted brand websites and consumer opinions posted online — a higher rate than for editorial content, brand sponsorships, and TV, newspaper and magazine ads.


eMarketer / TNS Global

Does Anyone Trust the Media?

According to TNS online news scores surprisingly high. The good news for internet content producers is that people now trust the information they get from online news — roughly to the same degree as news from television and information from friends.

Globally, the most trusted information source was friends, with 42% of those surveyed saying that they trusted word-of-mouth recommendations. About an equal number trusted TV news (41%), online news (40%) and newspapers (39%).

Filed under: Intelligence, Research, Summaries , Business Intelligence, eMarketer, Global Online Consumer Survey, Middle East, Nielsen Online, TNS Global

Executive Summary: Taking on social networks – Facebook, As7ab, Jeeran, Kalam, Watwet…

Marketers see customer insight value in social networks

Marketing Vox / DMA & HeadMix

Nearly 60% of marketing and management professionals think social networking can significantly influence their company’s brand awareness.

However, less than one-quarter say they are “actively engaged,” with it, according to a survey from the Direct Marketing Association’s Social Media Council in partnership with HeadMix.

The survey, which includes responses from DMA members representing nearly 40% of the Fortune 100, found that most survey respondents report that they are either “starting to learn” or in the “middle of the pack,” in terms of understanding social networking and 35% say their companies have trials of social networking programs under way. Currently, fewer than 15% say social networking platforms are a core part of their business, and one-fourth are currently evaluating their strategy.

Social media playtime is over

Jeremiah Owyang, Senior Analyst

The recession has put more pressure on interactive marketers to deliver measurable results. While many marketing budgets are being cinched, more than 50% of interactive marketers say they will increase their spending on social marketing. Why?

These inexpensive tools can quickly get marketing messages out through interactive discussion and rapid word of mouth and, properly managed, can deliver measurable results.

Social computing predictions

Jeremiah Owyang, Senior Analyst

With adoption of all social computing technologies increasing in 2008, brands will move beyond experimentation and focus on real business impact in 2009. New technologies will arise that allow platforms including eMail, the web, and mobile devices to connect with communities.

Brands start to integrate social applications with traditional marketing campaigns and revise campaigns based on social feedback.

Using social applications in ad campaigns

Sean Corcoran, Analyst

Move from broadcast to dialogue.

The majority of marketing budgets go to advertising, and there is a significant opportunity to enhance it with social tools.

Social media marketing typically generates longer-term relationships, which means that it is out of sync with the quick-hit nature of most advertising.

To enhance an ad campaign with social elements, interactive marketers should know their audience’s behavior, commit to the communities for the long term, plan for transitions or community exits, and develop new campaign metrics.

The future of the social web

Jeremiah Owyang, Senior Analyst

Today’s social experience is disjointed because consumers have separate identities in each social network they visit. A simple set of technologies that enable a portable identity will soon empower consumers to bring their identities with them and transforming marketing, eCommerce, CRM, and advertising.

Consumers will rely on their peers as they make online decisions, whether or not brands choose to participate.

Socially connected consumers will strengthen communities and shift power away from brands and CRM systems; eventually this will result in empowered communities defining the next generation of products.

Social media meltdowns

Rebecca Jennings, Principal Analyst

Online preparedness isn’t just for online marketing campaigns.

Increasing numbers of consumers are engaging in conversations about brands online.

Interactive marketers must realize that while they no longer can control what people publicly say about their brands, they can minimize the damage if these conversations turn negative.

Organize your company for social computing

Jeremiah Owyang, Senior Analyst

The biggest challenge brands often have to overcome isn’t technology but managing cultural change within the enterprise.

Once brands experiment with social activities, they must then organize from the inside out or risk not properly staffing or responding to customers.

Brands need to integrate social into their companies by developing a safe place for employees to experiment, creating a process to manage and measure these programs, and integrating social into other marketing and enterprise systems.


Example 1/4:

The social tools consumers want from their favorite brands

Josh Bernof, Senior Vice President – Idea Development

More than half of online tweens and teens and 42% of online adults want to see a social application from their favorite brands. For example, one in four US online adults want to see discussion forums from brands they like, while more than one-third of teens want profiles on social networks.

You should provide them with multiple ways to connect with your brand.

To keep these enthusiasts engaged, you should address their issues online, respond to their comments in real time, and partner with agencies that have experience maintaining fan relationships.


Example 2/4:

Social computing strategies for luxury brands

Mary Beth Kemp, Vice President, Principal Analyst

The key is to balance accessibility and exclusivity.

European luxury consumers enthusiastically use the internet, often to talk about the brands they love. But luxury brands keep both the internet and these consumers at arm’s length.

CMOs directing luxury brands can no longer ignore the online conversations about the brands they manage. They must participate in social computing to guide the future of the brand.

Social computing opens three rich opportunities to enhance the luxury marketing mix:

1. Creating reciprocity
2. Capturing deep consumer insight
3. Energizing consumer influencers


Example 3/4:

The practicalities of European social media marketing

Rebecca Jennings, Principal Analyst

As European marketers look to ramp up their social media spend, a few innovators are providing some best practices for how to use social media for a variety of objectives.

A number of key learnings are already emerging, for example, that the use of multiple social media channels simultaneously can lead to positive synergies and that metrics don’t have to be perfect to be insightful and shouldn’t provide a barrier to working with social media.


Example 4/4:

Young US online bankers and social media

Edward Kountz, Senior Analyst

The rise of social media is changing the way consumers communicate online, introducing a two-way dialogue and giving users the ability to more effectively disseminate and share information with other online users.

While most of today’s usage is centered on entertainment, the fact that more than half of young online bankers have created or updated a social networking page reflects the challenge and opportunity for established financial institutions to leverage social media.


Related: ITP

Jacky’s takes to the web to boost sales

Ashish Panjabi, COO at Jacky’s, suggests the channel should make more use of social networking tools as they provide a great way to connect with customers.

“Through our Facebook and Twitter accounts we are able to directly target and relate with people updating them of the latest products in the market, best promotions and even give them online customer service. We hope to connect with and hear from all our customers online.”

In Downloads

Razorfish: Social Influence Marketing Report

Filed under: Research, Summaries , As7ab, Facebook, Forrester Research, Jacky's, Jeeran, Kalam, Social Networks, Watwet

Executive Summary: Interactive Marketing Predictions 2009

Forrester Research

Asia Pacific: Optimism and innovation

Steven Noble, Senior Analyst

Overall, the current global economic turmoil will harm the Asia Pacific (APAC) region, and specifically China, less than it will other regions.

Marketers will continue shifting their budgets toward digital. In this context, three themes will define APAC interactive marketing in 2009:

1. Cautious optimism
2. Careful experimentation
3. Return on investment (ROI)

Specifically, marketers will carefully test the emerging technologies that have the lowest cost, highest reach, or greatest impact on sales: social media, mobile, and digital point-of-sale.

Although global economic turmoil will not kill optimism or innovation in APAC, it will increase the focus on measurement and ROI. Most marketers will embrace one of the most measurable forms of digital marketing: search. Activities that don’t have a clear business purpose won’t survive 2009.

Europe: Increased focus on analytics

Rebecca Jennings, Principal Analyst

2009 will bring major challenges for European interactive marketers as economic conditions place greater emphasis than ever before on generating results and gaining efficiencies from online efforts.

While Forrester believes that interactive budgets will be the most robust element of marketing spend, European interactive marketers will need to address staff shortages, changing consumer demands, and an increased focus on analytics.

North America: Scrutinize but not slash

Christine Spivey Overby, Vice President, Research Director

In North America in 2009, interactive marketing will assume an unapologetic and, in some cases, central role in the marketing mix thanks to both the ascendance of digital media and the inherent measurability of interactive channels.

Tactics like search and social applications will do particularly well. Marketers will scrutinize but not slash online display budgets by using new optimization tools to boost the return on this spend.

Fundamental upgrades to the internet infrastructure, endorsed by the new Obama administration, will allow US interactive marketers to embrace rich and entertaining ad formats.

Filed under: Research, Summaries , 2009, Executive Summary, Forrester Research, Interactive Marketing, Prediction