Analysis for 'Google'

  • Nike's World Cup Campaigns Cap Record Quarter for Branded Videos

    Late last week, Visible Measures released its quarterly Branded Video Report for Q2 '14, finding that branded videos were watched 2.8 billion times, an increase of over 50% vs. Q2 '13. The big driver of the record quarterly views was the World Cup, with videos related to it accounting for 19%, or almost 555 million of the views.

    Nike was by far the biggest winner of World Cup related branded videos, with nearly 259 million True Reach views during the quarter, 84% of which were from its eight World Cup videos. Nike wasn't even an official World Cup sponsor, but its videos received 2.5x the 103.7 million views of adidas, which was the official sponsor and landed the brand in 3rd place for the quarter.

    continue reading on VideoNuze iQ

     
  • Google/YouTube: We're TV's Best Friends

    Late last week Google released research demonstrating the growing impact that YouTube and Google are having on TV show viewership and engagement. Per the chart below, Google found that for a sample of 100 broadcast and cable networks, TV-related activities on Google and YouTube for May-December 2013 were up sharply across 5 different metrics vs. the same period of 2013.

    The biggest gainer was TV-related watch time on YouTube, which was up 65%, followed by TV-related engagement activities on YouTube (up 56%) and TV-related searches on YouTube (up 54%). The big driver of searches was mobile devices, which experienced a 100%+ growth rate year-over-year.

    continue reading on VideoNuze iQ

     
  • Google/YouTube: Research Shows Lighter TV Viewers Primed for Online Video Ads

    It's no secret that with consumer behavior fragmenting over different video sources and media-related activities, advertisers are having a tougher time than ever reaching their targeted audiences. Especially elusive are younger, lighter TV viewers. No surprise, these lighter viewers skew younger with about 31% of 18-49 age group in the category. They're also choice targets for advertisers: they're wealthier, more educated and more diverse.

    To help prove the efficacy of online video advertising as a method for reaching these viewers, yesterday Google/YouTube and Nielsen released new research demonstrating that lighter TV viewers (who average 39 minutes per/day) are more effectively and cost-efficiently reached with online video advertising that compliments traditional TV advertising.

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  • Globally, YouTube's Market Share is 20 Times Its Nearest Competitor's

    I've often said that YouTube is the 800-pound gorilla of online video, but I was always basing that on its share of the U.S. market. Now, with comScore's first-ever release of global data from its Video Metrix service, it's clear that YouTube is in fact planet earth's 800-pound gorilla of online video.

    As seen in the chart below, in October YouTube delivered almost 44% of the 201 billion videos viewed globally, nearly 20 times as much as China's Youku, which was in second place with 2.3%, and nearly 7 times as much as the #2-5 players. Since the global market is so fragmented, based on some assumptions I've made, it's quite possible that YouTube has more market share globally than the top 100 video sites, combined. Wow.

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  • 5 Items of Interest for the Week of Jan. 10th

    Even though I was very focused this week on the CES "takeaways" series, there was still plenty of news happening in the online and mobile video industries. So as in the past, I'm pleased to offer VideoNuze's end-of-week feature highlighting 5-6 interesting online/mobile video industry news items that we weren't able to cover this week. Enjoy!

    Level 3 fights on in Comcast traffic dispute
    Level 3 is showing no signs of relenting on its accusations that Comcast is unfairly trying to charge the CDN for Internet traffic it delivers to Comcast's network. In an interview this week, Level 3 said it may use the "Open Internet" provisions of the FCC's new network neutrality rules to press its case. Level 3's challenge is coming at the 11th hour of the FCC's approval process of the Comcast-NBCU deal; it's not really clear if Level 3 is having any impact on slowing the approval, which appears imminent.

    Comcast-NBCU deal challenged over online video proposal
    Speaking of challenges to the Comcast-NBCU deal, word emerged this week that Disney is voicing concern over the FCC's proposed deal condition that would force Comcast to offer NBC programming to any party that had concluded a deal with one of NBC's competitors for online distribution. The Disney concern appears to be that the condition would have an undue influence on how the online video market evolves and how Disney's own deals would be impacted. While the FCC should be setting conditions to the deal, the Disney concerns highlights how, in a nascent, fast-moving market like online video, government intervention can cause unintended side effects.

    YouTube is notching 200 million mobile video views/day
    As if on cue with my CES takeaway #3, that mobility is video's next frontier, YouTube revealed this week that it is now delivering 200 million mobile views per day, tripling its volume in 2010. That would equal about 6 billion views per month, which is remarkable. And that amount is poised to increase, as YouTube launched music video site VEVO for Android devices. YouTube clearly sees the revenue potential in all this mobile video activity; it also said that it would append a pre-roll ad in Android views for tens of thousands of content partners.

    Google creates video codec dust-up
    Google stirred up a hornet's nest this week by announcing that it was dropping support for the widely popular H.264 video codec in its Chrome browser, in favor of its own WebM codec, in an attempt to drive open standards. Though Chrome only represents about 10% market share among browsers (doubling in 2010 though), for these users, it means they'll need to use Flash to view non-WebM ended video. There are a lot of downstream implications of Google's move, but for space reasons, rather than enumerating them here, check out some of the great in-depth coverage the issue has received this week (here, here, here, here).

    Netflix usage drives up Canadian broadband bills
    An interesting test of Canadian Netflix streaming showed that a user there might have to pay an incremental $12/month under one ISP's consumption cap. That would be more than the $7.99/mo that the Netflix subscription itself costs, leading to potential cord-shaving behavior. This type of upcharge hasn't become an issue here in the U.S. because even ISPs that have caps have set them high relative to most users' current consumption. But if streaming skyrockets as many think it will, and the FCC allows usage-based billing, this could fast become a reality in the U.S. as well.


     
  • 4 Items Worth Noting from the Week of August 3rd

    Following are 4 items worth noting from the week of August 3rd:

    1. Research, research, research - For some unknown reason, there was a flurry online video-related research and forecasts released this week. In no particular order:

    eMarketer was out with a new forecast indicating 188 million online video viewers in the U.S. in 2013.

    Veronis Suhler released its forecast of 2009-2013 communications industry spending, showing advertising shrinking as a percentage of total spending.

    PWC's UK office released its 2009-2013 forecast, which also anticipates declines in advertising.

    CBS's research head David Poltrack used detailed data to explain the company's online video strategy and buttress its argument that in a TV Everywhere world, it should be compensated for its content (slides are here, via PaidContent).

    Ipsos found that Americans streamed a record amount of TV programs and movies, doubling their consumption from Sept '08 to July '09.

    Yahoo and a group of research partners released data finding that 70% of online video consumption happens throughout the day and night, as opposed to traditional TV viewing which is concentrated in the prime-time window.

    Last but not least, TDG released excerpts of its research on "over-the-top" video services, available for download at VideoNuze.

    2. Unicorn Media launches, hires ex-Move Networks executive David Rice - It will be hard for some to believe there's room for yet another white label video publishing and management platform, but startup Unicorn Media is going to try elbowing its way into the crowded space, with a specific focus on large media companies. I spoke with Unicorn's executive team this week, led by Bill Rinehart, who was the founding CEO of Limelight.

    Unicorn is positioning itself as the first "enterprise-grade" solution, staking out key differentiators such as enhanced analytics/reporting, faster/easier transcoding, improved APIs for content ingest/management and more flexible monetization/ad queuing. I have not yet seen a demo, but I'm intrigued by what I heard. The company has raised $5M to date from executives/angels and has a staff of 25. David Rice, formerly Move's VP of Marketing has come on board as Chief Strategy Officer. Given the team's industry expertise and relationships, this could be a company to watch.

    3. Google acquires On2 Technologies and other encoding-related news - The blogosphere was in a flurry about Google's $106M acquisition of video compression provider On2 Technologies this week. Speculation flew about Google open-sourcing On2 new VP8 codec, which could potentially force a new standard to emerge as a challenge to H.264, today's leading codec. This is important stuff, though a little further down the stack than I usually focus, so I refer you to Dan Rayburn's analysis of the deal's implications, which is the best I've seen.

    There was other news in the emerging cloud-based encoding/transcoding/delivery market this week, as Encoding.com announced a new premium service with tighter service level agreements (4 minute max wait time and 50 Gbyte/hour/customer throughput). Encoding.com's Gregg Heil and Jeff Malkin explained the company is using the new SLAs to move upmarket to service tier 1 and 2 media companies. Separate, Encoding.com's competitor mPoint's CEO Chiranjeev Bordoloi told me they're now on a $3M annualized revenue run rate as cloud-based alternatives continue to gain acceptance.

    4. Don't try this at home - On a lighter note, there's been no shortage of knuckle-head stunt videos we've all seen online, but this one is near the top of my personal favorite list. Do NOT try replicating this over the weekend!
     
  • Google is Being Clumsy in Explaining YouTube's Performance

    Yesterday's "YouTube myth busting" post on its YouTube Biz Blog had the opposite of its intended effect: rather than providing more transparency about YouTube's performance as it hoped to do, it only set off another round of frustrated posts in the blogosphere imploring Google to release actual YouTube numbers.

    The post came on the heels of last week's Q2 '09 earnings call and supplementary briefing call (transcripts here and here) which were full of optimistic, yet confusing comments about YouTube's "trajectory" from a handful of Google's senior executives.

    Here's what CFO Patrick Pichette said on the supplementary call: "I think that it is true that we are pleased with YouTube's trajectory. And in part the reason why we're communicating it to the Street is there's been so much press over the last quarter with all of these documentations of, you know, massive cost and no business models and all kind of negative press that we've read a lot about. And we just wanted to kind of reaffirm to the Street that this is a very credible business model and it's one that's got trajectory. So in that sense it's just to kind of tell everybody that we're on progress on the plan that we had made for it."

    But what plan is he referring to? In almost 3 years of owning YouTube, Google has never publicly disclosed a specific plan for YouTube or laid out its business model, so attempts at reaffirming it fall flat because there's nothing against which progress can be judged. Here are other comments, with my reactions in parentheses.

    Pichette on the earnings call: "We are really pleased both in terms of its (YouTube's) revenue growth, which is really material to YouTube and in the not long, too long distance future, we actually see a very profitable and good business for us, so from that perspective, we are really pleased with the trajectory." (WR: that sounds pretty bullish)

    Jonathan Rosenberg, SVP of Product Management on the earnings call: "I think what I said - or what I meant to say was that monetizable views have tripled in the last year and that we are monetizing billions of views every month." (WR: that sounds bullish too, but wouldn't some actual numbers really bolster this point?)

    Rosenberg on the supplementary call: "And that's part of why I think it's taken us time to kind of triangulate toward what works, and I think some of the things that we have now are still in the pretty nascent stages..." (WR: nonetheless, per earlier comment, profitability can already be forecast in the not too distant future?)

    Nikesh Arora, President of Global Sales Operations and Business Development on the earnings call: "So we are seeing significant sell-through in most of our major markets where we have YouTube homepage for sale." (WR: of what ad unit - pre-rolls or display?)

    Arora on the earnings call: "So I think the next phase of YouTube is going to be toward pre-roll video on short clips and long form video (which we are in the process of doing) various deals in, which we've announced in the past." (WR: that's new news, YouTube's spoken primarily of overlays in the past)

    Rosenberg on the supplementary call: "I would not say our overall optimism that we expressed with respect to YouTube is primarily a function of one specific format. We've actually been testing pre-rolls, I think, for quite a while. So if you interpret that one single comment to pre-rolls to imply the broad conclusion with respect to optimism on YouTube, I think that's probably a mistake." (WR: so maybe pre-rolls aren't actually the next big thing?)

    Yesterday's post: "Myth 5 YouTube is only monetizing 3-5% of the site. This oft-cited statistic is old and wrong, and continues to raise much speculation." (WR: what is the percentage then?)

    CEO Eric Schmidt on the earnings call: "The majority of YouTube views are not professional content. They are user generated content because that's the majority of what people are watching." In response to whether YouTube is able to monetize user-generated content: "Has not been our focus." (WR: again, letting us know what percentage is professional and the focus of monetization would be very helpful)

    These comments raise lots of questions about how far along Google actually is in understanding YouTube's traffic and its ability/plan to monetize it. I think Google is being clumsy in explaining YouTube's performance because it got nervous about the eye-popping estimates that have been floating around lately about how much money YouTube is losing and rushed to try to mitigate this perception, but without being ready to present real numbers as backup. Further, I don't think it rehearsed its executives very well about what to say or how to say it, so the improvised comments did not convey a clear consistent message.

    As someone who believes YouTube has enormous long-term value for Google, my advice is that its executives should just stay mum on YouTube until they're ready to make a logical case backed by facts and data. That may take longer than Google or the market hoped, allowing the rumor mill to continue to churn. But continuing to make unsupported statements will only rile YouTube followers further, and eventually sap Google's credibility.

    What do you think? Post a comment now.

     
  • Crunching comScore's Video Data Yields Market Insights

    Last week when comScore announced data from its Video Metrix service for December '08, I made a note to myself to go back and look at all the video usage data comScore has released and see what it reveals. Below are 5 charts that I've compiled from comScore's press releases covering January 2007 - December 2008 (note comScore didn't report on every single month during this 24 month period so there are some holes in the graphs).

    The first graph shows the growth in total videos viewed per month, roughly doubling from 7.2 billion views in Jan. '07 to 14.3 billion views in Dec. '08.

     

    That growth is driven by a number of factors including an increase in the number of monthly viewers from 123 million in Jan. '07 (70% of U.S. Internet users) to 150 million in Dec. '08 (78.5% of U.S. Internet users).

     

    It also reflects an increase in the number of videos viewed per viewer from 59 in Jan. '07 to 96 in Dec. '08.

     

    Which further translates into the growth of total number of minutes the average viewer watched per month from 151 minutes per month in Jan. '07 to 309 minutes per month in Dec. '08.

    Aside from the sheer growth of the market over the last two years, the most striking thing about the comScore data is the growth in usage and market share by YouTube. Back in Jan. '07, YouTube generated approximately 1.2 billion video views per month for a 16.2% share of all videos viewed. Two years later in Dec. '08 YouTube generated approximately 5.9 billion video views per month for a 41.2% market share. YouTube's share growth is staggering: in every month but 1 during this period YouTube increased its sequential monthly views and in all but 3 months it increased its sequential monthly market share.

     

    Recall that Google closed on the YouTube acquisition in Nov. '06 and at $1.65 billion, many thought Google had grossly overpaid. Some may still believe this as YouTube is still very much a work in progress in terms of how it generates revenue. But there's no questioning the phenomenal two-year run it has had in terms of its usage and market share growth. This is one of the reasons why I continue to believe YouTube is one of the most powerful platforms for eventually disrupting the traditional video distribution value chain.

    If these slides are hard to view, I've uploaded them all to SlideShare.

    What do you think? Post a comment now.

     
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