the new must have content

The New Must-Have Content: Online Video

Michael HongDirector of MarcommLG Electronics USA.

Internet Retailer 2007

About LG

Lion & Sneakers

Charles Darwin

“It is not the strongest or the healthiest will survive but it will be the one that can adapt to change”

Speed

Division/Integration

Democratization

Prosumers

The digital era – New Culture

Self actualization

Love, Belonging & Self Esteem

Safety, Security, Survival

Social ConsciousnessValue pursuit; betterment of the

larger collective; community action

Emotional ConnectednessSense of community; empowerment(Share Photo/video, self publishing)

UtilityTask focus, Information access 24/7

(Search, shopping, banking)

Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs applied to Digital Evolution

Video… the beginning

1890

1931

1969

Evolution of Media Technology

Internet as Multi Media Platform

UCC

Broadband is driving change

Home Technology AdoptionAll US households

Internet

Broadband

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ion

s o

f H

ou

se

ho

lds

16% of Internet HH

86% of Internet HH

67% of Internet HH

Internet Speed

Sen

sory

Im

pac

t

VideoLow-Res

High

Low High

Audio

TextImage

HD 3D

Convergence of Media (Multi Media) High level sensory responsive marketing

Brandband opened new opportunities

Broadband Dial-up

2357Pages

1032Pages

Broadband Dial-up

24.8Hours

Broadband Dial-up

18.2Days

15.5Hours

14.3Days

PAGES PER PERSON TIME PER PERSON USAGE DAYS PER PERSON

HOME USAGE PER MONTHBroadband Vs. Dial-up

Broadband users are active

US Adults 18-54 w/ Home Broadband Connection

% of weekly media time

Source: 2006 Forrester NACTAS Benchmark Mail Survey-April 2006 Representation of All US Households: N=60,223

TV27%

Internet30%

Radio18%

Movies or DVD10%

Newspapers6%

Magazines5%

Video Games

4%

They spend more time on internet

Same65%

More15%

Less19%

None1%

More people will watch video on internet

Internet Video viewing in two years

Source: IDC Internet Video Usage 2006

Same32%

None12%

Less3%

More53%

TV viewing in two years

LIFE MANAGEMENT

FULL STORY

PERSONAL ENTERTAINMENT

SOCIALIZE

POST BROADBAND

COMMUNICATE

TASKS

SOUND BITES

JUST FOR FUN

PRE BROADBAND BEHAVIORS

SPEED

+

“ALWAYS ON”

Web 1.0

Internet is transforming

Web 2.0

People are transforming

7 Million Residents

Birth of New Culture & Generation

Yes33%

No67%

33% Internet users watch online video

Internet Video Viewers

Q: Have you watched internet video in the past 3 month?N=1,000


Daily18%

1-3 amonth20%

Rarely20%

Once aweek42%

Frequency of Viewing

Q: How often do you watch internet videoN=230

Who watches online video?

•Teens are 10% of the internet population yet they are 16% of the streaming population (149 index – base 12+ pop.)

•Composition of internet and streamers is the same for 18-34 and 35-54 groups

•41% of streams come from adults 35-54

•Adults 55+ do stream, but less heavily than other age groups

0

0

0

0

0%

10%

20%

30%

40%

50%

12-17 18-34 35-54 55+

Internet Population

Streaming Population

Streams

comScore Video Metrix, August 2006 – initial measurement methodology

Subtle gender differences

Unique Streamers - Monthly

10,186,82915,771,323

21,012,659

7,670,581

7,003,610

14,781,084

23,665,981

10,173,823

12-17 18-34 35-54 55+

Males

Females

•48% of Online teens are female, yet 59% of teen streamers are female (123 index)

•46% of Online persons 35-54 are male, yet males make up 53% of streams within this group (114 index)

•Overall even split among males and females, similar to the internet population


% of RespondentsMovies

TV Show

News

MovieTrailers

UCC

Music Videos

0 10 20 30 40 50

What they are watching?


User created content is competing with professionally produced content.

Few major players in streaming market

61%

Percent of Total Monthly Streams Online

1) Fox Interactive Media-MySpace (99%)

2) Yahoo! Sites3) YouTube.com


Few major players in streaming market

81%

Percent of Total Monthly Streams Online

1) Fox Interactive Media-MySpace (99%)

2) Yahoo! Sites3) YouTube.com4) Viacom Digital

-MTV (53%)-Nick (35%)

5) Microsoft Sites6) Google7) Ebaumsworld.com8) Comcast Corp.9) Real.com10)Break.com


Adults 18-34Adults 18-34 - Monthly


Adults 35-54Adults 35-54 - Monthly


Adults 54+Adults 55+ - Monthly


Slight composition differences between sites

Unique Streamers by Age

16%

19%

16%

18%

28%

17%

32%

33%

29%

26%

29%

28%

30%

13%

10%

14%

15%

18%

9%

13%

39%

38%

41%

41%

47%

35%

40%

5%

Yahoo! Sites

MYSPACE.COM

YOUTUBE.COM

AOL

MSN-Windows Live

Viacom Digital

Google Sites

12-17

18-34

55+

35-54


YouTube – disproportionate streams by teens

Streams by Age

18%

17%

24%

17%

27%

13%

34%

34%

30%

26%

30%

30%

32%

11%

9%

9%

14%

19%

9%

13%

37%

39%

36%

43%

48%

35%

42%

3%

Yahoo! Sites

MYSPACE.COM

YOUTUBE.COM

AOL

MSN-Windows Live

Viacom Digital

Google Sites

12-17

18-34

55+

35-54

24% were made by 16% of streamers on

the sitecomScore Video Metrix, August 2006 – initial measurement methodology

0

5

10

15

20

25

30

35

JanuaryFebruary March April May June July August

34 Million UU (YouTube)

22% Reach

Explosive growth of Gen. C

14th Largest Web Destination

…and Video content sites

Four keys of online video sites

1. Community as founding principal

2. Easy to share content

3. Statistic to encourage engagement

4. Free to express creativity

Rediscovery of Video

Online Video ad Impact

3.3

7.54.7

1.9 1.6

9.6

20

12.9

4.8 4

Aided BrandAwanss

Ad Awrnss Msg Asso BrandFavorbility

PurchaseIntent

GIF/JPG Video/Audio*Source: Unicast data, 2006

Avg

. C

hang

e %

Online Video ads are 2 to 3 times more effective over traditional banner ads.

Ubiquity of Video Usage

Internet TV/VOD Virtual 3D Community Online game Advertorial, Infomercial, Edutainment Education/Training PR (Company news) Online Video ad (Preroll & Rich media) Viral intended video content (You Tube) UCC

Kleenex

Video content to attract visitors attention and participation

Editorial video content to support and influence purchasing decisions.

Good Housekeeping

Buynow.com

Editorial contents are provided by both marketers and consumers

Roo.com

Supply video contents to keep your site engaging

Mc Donald – UCC

Brands are being redefined by consumers

LG USA.com

Entertainment contents are integrated to product info site

Surge of Online Video Ad Spending

Marketer’s concerns

Video contents are not Search friendly Down loadable video content can open high

risk of negative content meshing activities Getting viewer attention is getting harder Quality and Quantity of video

Marketer’s options

Marketer must continue to create content professionally to deliver your brand story Unlike info heavy text media, video media

could touch hearts and souls of audiences creating inspiration for brand

Marketer must utilize voice of consumer UCC is double edged sword, It can be a hit or

worst nightmare for brand. Creating participation of loyal customers will mitigate negative impact

so what’s next?

*Source: 2007 IDC

Convergence of Phone, TV, Internet and wireless service will eventually offer new form of communication and entertainment platform to marketers.

Thank You

the new must have content

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