Is Online-Video Catching Up to TV?

It's getting harder to make a case that TV still reigns.

Brightroll published its annual report about video advertising, and here are some highlights via TechCrunch.

This information jives with Forrester’s prediction that online-ad spending will overtake TV in 2016. And eMarketer’s statement that online-video is the fastest-growing portion in digital advertising.

Highlights:

  • The Brightroll data comes from a survey of advertisers about how they’re approaching online video and what their budget plans are for the coming 12 months.
  • 64 percent said they believe that online video advertising is equally or more effective than the ads that show up on TV. That’s a big deal.
  • Why is online-video rivaling TV?  Because 70 percent of Internet users watch video online, meaning scale/reach is now possible.
  • Most respondents see online video as more effective than both display and social media. That’s notable given the market’s increasing obsession with mobile and social-media ads.
  • 30 percent of respondents said they expect online video to grow faster than any other type of advertising. That’s actually oddly conservative. Remember eMarketer estimates that US online video ad spending will grow by a compound annual rate of 38% in a five-year span ending in 2015, making this by far the fastest-rising category of online spending. Do the other 70% feel otherwise?
  • Performance metrics continues to confound media buyers. About 70 percent said that they needed a more clear ROI and success metrics to justify increasing spend on online video. And about a third want more info about the impact their online video buys have on offline purchasing. TV has had more time to develop metrics and prove results.

As any new media emerges, there’s a dance between the evangelists and skeptics. We saw it when the web arrived. We saw it at the dawn of display. We saw it with paid search (which the survey suggests is still the favorite of advertisers). Now we’re seeing it with the ongoing debates about the merits to TV and online-video.

But now it’s hard to deny online-video and praise TV has the bedrock of branding. With apologies to Mark Cuban (who is still a skeptic of online-video). It’s time to recognize that both TV and online-video have a powerful role in advertising and marketing, and that’s why most media-buyers are savvy enough to plan, buy and measure TV and online video together (eMarketer).

Remember what Nalts has been saying for many years, kids. Eventually we won’t have terms like “TV” and online-video. We’ll just view video as a channel or media manifestation whether it occurs on a computer, mobile device, HDTV, pad or those new fangled cathode ray tubes.

Tablet Viewing is 30% Higher Than Desktop (and more stats on online-video viewing by device)

I just discovered a report published late last year on video trends observed in the 3rd quarter 2011 (ending Sept. 30). It seems we watch 30% more video when on an iPad (versus desktop). Ooyala, a service provider to media companies, tracks a mess of activity and provides some nice signals in this report (see PDF). The company defines “conversion” as the percent of videos viewed against those displayed. I’d estimate these to be rather small (low single digits) on YouTube. But the publisher sites seem to be doing much better, with 40% to 60%. Game players take the lead with 60% which is remarkable, but probably a function of fewer content choices.

I really like this visual of the complete rate by form factor. It confirms what we’ve been saying about our tolerance for longer form when on devices beyond desktop.

Our complete rate varies fairly significant by device

P.S. Here’s some cheese.

Do you Hunker for a Chunk of Cheese?

Samsung Calls Consumer Reports “Not Honorable”

Samsung CEO Geesung Choi called Consumer Union, the non-profit product-testing organization behind Consumer Reports magazine, “not honorable.” Choi on Monday cited the October 2010 issue of the magazine, which gave Samsung low scores on high-definition and standard-definition video camcorders.

"Consumer Reporting not honorable," says Samsung CEO Geesung Choi

“American magazine making JVC and Sony best-buy awards is insult to my family and character,” said Choi at a press meeting yesterday. “Consumer Deport (sic) will caused me great suffering and humiliation,” the CEO shouted at a press meeting that is already being satired on such online-video sites as Revver and YouTube. AP News reporter David Scheyd asked Choi to identify if Consumer Reports has any conflicts of interest or missinformation, but Choi declined to speak about the unfavorable ratings of the Samsung HMX-H204 and SMX-C24.

“We people of Samsung find better reviews by cooperative publishers like Very Eager Product magazine,” said Choi. The publication, according to Washington Post writer Richard Winters, is edited by Choi’s niece, Xiuxiu Ch’eng. Ch’eng’s previous review magazines were the subject of a CNN “Bogus Review” article. “When you see merchandise or merchant ratings, or prices that look too good to be true, be cautious,” said Heather Dougherty, analyst with Nielsen/NetRatings. Very Eager Product’s September 2010 issue gave Samsung’s digital-camera line “5 eager stars” and reports Samsung’s recent camcorders are “strong to please and suiting whole family needs for easy utilization and bright leadership in electronic consumer portfolio.”

Consumer Union President Jim Guest e-mailed a statement claiming he is “not concerned about Samsung’s allegations.” “It’s quite common for a manufacturer to dispute the credibility of our publication when we review them unfavorably,” wrote Guest. “We do our best to maintain objective reviews using consistant processes, and surveys of millions of consumers regarding their experiences with products and services.” Guest found himself facing similar attacks just months ago when the magazine’s poor review of the iPhone prompted Steve Jobs to call the magazine: “Lying liars who lie.”

Consumer Reports October 2010 issue “capable camcorders” awarded CR Best Buys to JVC’s A5 and Sony’s A10, crediting such attributes as image quality, excellent battery life and autofocus. The article indicated that manufacturers have discontinued DVD and MiniDV tape models.

Samsung is opting to depart from the evolving industry-standard of flash media. Choi said Samsung’s 2011 video cameras will “pursue new waters of storage and finer horizons for image holding,” citing the Samsung CMX2’s Iomega Zip Drive camera available in February 2010. He cited Samsung’s ongoing commitment to “make better society and humans.”

Samsung to recycle Iomega Zip Drives for 2011 model

Sony USA CEO, Sir Howard Stringer, released a statement on Monday indicating that Consumer Reports maintains Sony’s respect. “We appreciate hard working Americans, and nothing says American like Consumer Reports.” Stringer asked that WillVideoForFood not use Stringer’s “Sir” title in reporting. JVC declined specific comment, but spokesperson Alice Preis acknowledged that the company was “f’ing stoked” about the magazine’s positive ratings on 5 of its JVC models.

Consumerist.com reported last week that “Samsung is not sure where Samsung apps will work,” and Technorati reported that Samsung has launched the highly anticipated Galaxy Tab claiming to be “just as good as the iPad.” Choi yesterday said the Galaxy Tab was “many appealing superiority” to the iPad, and projects 2010 sales to exceed the company’s adjusted forecast of 845 units.

Technorati reported in August that Samsung is overhauling its business model to remain competitive and innovative, and is diversifying its business. Samsung’s public list of affiliated companies, however, has no listing of what Technorati is calling Samsung’s new “Very Suspicious Supermarket” chain in the Bronx, NYC.

P.S. I’m kidding. Thanks, Slater, for pointing out this wonderful Samsung video promoting the, um, galaxy thing. Dang this is so wonderful! If you don’t smile watching this than you’re the Uncle Bus who appears in the video linked above. Appreciate the tip, Brett… I’m going to use this as a “best in class” of viral video marketing because it is.

Technorati claimed last week that Samsung is behind new chain of "Very Suspicious Supermarkets" in NYC