A CYNOPSIS MESSAGE FROM DISNEY INTERACTIVE MEDIA GROUP

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Cynopsis Media presents:
Digital Upfront 2012 – The Review
05/07/12

Good morning. It’s Monday, May 7, 2012 and this is your second installment of a two-part series surrounding the Digital Content NewFronts.

Like TV, But Different 

By Sahil Patel

In my Q&A with Janet Balis, SVP and Head of Sales Strategy, Marketing, and Partnerships at AOL, she described digital video content as being different than TV in the sense that digital video is characterized by a scarcity of premium content, at scale. TV’s economics, on the other hand, are defined by a scarcity of inventory, she said. In other words, digital video is not only “dogs/cats on skateboards” anymore. It was a phrase that was echoed across a lot of presentations during the inaugural Digital Content NewFronts; aiming to assert the viability and profitability of digital video content to an audience of buyers and advertising decision-makers who may still be lounging on the TV side of the fence. (Incidentally, I would argue that you’d be hard-pressed to find many people who view digital video as just a catalog of pets doing cute/hilarious things. Nonetheless, the point was made that digital video is here and that it has staying power).

But how? It goes back to this strategy of premium content, developed by leading content creators and brands, distributed by prominent online networks (the DCNF presenters) at scale, to an audience that is online and is willing to consume and engage with content that appeals to them. In a nutshell, across every presentation, that was the unifying theme.

This aligns the television model in an interesting way. And not just by taking the established TV industry practice of the Upfront. It can be argued that all television content is premium. That’s why the TV Upfronts are a hot ticket. And just like with the TV Upfronts, some of the premium programming presented at the events seemed exciting and likely headed for success, and some not as much. It makes sense; after all, no one bats a thousand. But by collaborating with star producers, filmmakers, and talent, many of whom have had success in television, the digital side is aiming for that same level of respectability in the eyes and wallets of advertisers.

And yet, the DCNF presenters also argued that they, and premium digital content, are different.

AOL, Digitas, Hulu, Microsoft, NBCUniversal, Yahoo!, YouTube, Alloy, DECA, Disney Interactive, Digital Broadcasting Group, PopSugar, VEVO, and every other presenter at the DCNF described how it had the potential to reach a wide audience, and how in many cases, it was already doing so. Therefore, with that capacity in place, all that was needed was premium content targeted to those audiences, whether it be moms, teenagers, men, or many other demos, to create an opportunity where brands could come in and connect with those consumers. And with the interactive and democratic nature of digital content, brands would not have to be confined to sponsorships and 30-second spot advertisements (even though that is an option as well), or to just one screen (even though that is an option as well).

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A CYNOPSIS MESSAGE FROM GOOGLE

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YouTube: Play Means Business

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Play means integrating with some of the most exciting content in media. Play means precisely targeting any audience with the unequaled emotional power of video.

See what Play can do for your brand.
Youtube.com/playmeansbusiness.

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So was this inaugural event successful?

Yes, kind of. While the conversation surrounding the monetization of digital video had already begun, it can be said that the Digital Content NewFronts were necessary to propel it forward, from a discussion point to one that leads to action. Surveying Digitas’ NewFront, which provided a window into where both content providers and advertisers stood on the path to developing a digital video marketplace, it didn’t appear that this was a fool’s errand. There were opportunities at the Digitas NewFront for brands, agencies, and content creators to meet, discuss, and negotiate deals — with some 40 or so of such meetings taking place during the six-hour event. This coupled with reports of the individual DCNF presenters sitting down with advertisers indicates that there is legitimate interest in such a marketplace.

That being said, a lot of work still remains. The DCNF presenters were effective in grabbing the attention of some advertisers. At the end of the day, the extent to which each presenter was effective will be determined by how many deals it closed and partnerships it established — how well it monetized the premium content that it highlighted. That information may be forthcoming, but will be best characterized by how the six founding DCNF partners and other presenters shape the second annual event next year. What will be different, down to the volume of attendees when compared to the inaugural DCNF, will be as important as what will be presented.

Digital video is still in many ways at a nascent stage. Looking ahead, a lot has to be done to get advertisers as on board with it as they are with the TV side, including the ever-important task of proving that the premium digital video showcased at the DCNF is reaching audiences. That information can’t come from the content providers alone. There is a necessity for an independent, consistent, and effective measurement that can become a standard for video buying. Forward strides have been made in this department, as exemplified by Nielsen’s Online Campaign Ratings initiative, among others, to get advertisers more comfortable with digital video.

It was said during a panel at the Digitas NewFront that it’s going to take top brands to monetize digital in an effective way. Simple as it is to say, the inaugural Digital Content NewFronts were successful in pushing digital video forward, getting that foot in the proverbial door. How (not if) it gets to a permanent seat next to TV at the big table is still to be determined.

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A CYNOPSIS MESSAGE

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Here are brief overviews of each individual DCNF presentation, along with one highlight from said event. For a more extensive list of the programming showcased at each event, click through to see the full report. http://www.cynopsis.com/editions/digital/ 

Hulu has a lot of content, a large audience consuming it, and advertiser-friendly tools to help brands connect with the audience. Therefore, it argues that advertisers should be giving online video, and by extension Hulu, some attention. It currently boasts approximately 40,000 hours of content across Hulu and Hulu Plus, consisting of more than 50,000 full TV episodes and nearly 1,900 series. Hulu Plus passed the 2 million subscribers mark in Q1 of this year. Hulu mentioned that in February 2012, Americans watched 2.5 billion videos on the website, which it noted as being about 1,000 videos a second. Furthermore, the company said that it is the largest video advertising space in the U.S. in terms of most video ads online. It represents 20% of the overall online video marketplace, as well was 40% of the premium video marketplace, an important distinction considering the theme of the DCNF. And last but not least, it recently rolled out an ad offering where it will only charge advertisers based on 100% completion rates.

Highlight:
Don’t Quit Your Daydream, a new series from actor/filmmaker Adrian Grenier, who spoke at the event, based on a documentary by Grenier and John Loar. Targeted toward the 18-34 demographic, the docu-series follows a cast of musicians that travel across the country in search of artists to collaborate on a new song, thereby giving them a second chance at stardom. Still in development, this series is available for brand sponsorships.

A digital commerce, original content, and global media company, PopSugar positioned itself as an influential lifestyle brand for women. To that end, the company produces several original web series, live event coverage, and celebrity interviews, as well as other editorial content, devoted to the female audience. It said it currently attracts 28+ million unique visitors per month, and that its original video content generates nearly 30 million video views per month across all of its distribution platforms. The company featured POPSUGARtv, a programming initiative that is comprised of 19 original shows, all produced in-house.

Highlight:
PopSugar announced that it was in the process of building live broadcast studio sets at their offices in New York, Los Angeles, and San Francisco, with the intention of establishing a live 24/7 network.

Touting its capabilities as a full-service (production to distribution) content company, DBG’s presentation shined a light on its past successes in collaborating with brands to create original, branded entertainment. This includes a partnership with McDonald’s to produce two seasons of the Hispanic-focused Latinos Are One, as well as collaborating with Pier One to produce and distribute Design and Conquer.

Highlight:
CLiP (content library platform): A video payer populated with several different content channels that are embedded directly in publishers’ websites (approximately 300, which DBG said lead to 35 million streams per month). CLiP offers ad inventory that is adjacent to curated content that is relevant to a specific audience. At its presentation, DBG showcased the six content channels that are a part of CLiP, including Entertainment, Sports, Men’s Lifestyle, Women’s Lifestyle, Business/Tech, and Travel.

Microsoft Advertising’s DCNF focused on the ability of digital to provide a platform through which brands can create customized content experiences, as well as Microsoft’s capabilities in helping brands and agencies reach and engage with consumers wherever they are — on multiple platforms. This included highlighting MSN Now, which is a new product that aims to “go beyond video.” Launched simultaneously across mobile, PC, and Facebook, it uses a platform built in-house that identifies trends on the web, after which an editorial team will write a blurb about said trend and then provide links to related content on MSN.

Highlight:
Xbox LIVE. Microsoft said 50+ partners have signed on in the last four months to offer content apps through the console. In addition, the company said that Xbox LIVE (gold members) spend 84 hours a month on the service. For them, entertainment app usage has surpassed multiplayer gaming on the service. Essentially, it said that it has turned the largest screen in the house, the TV, into a digital screen. Microsoft also delved into how Kinect will be capable of creating interactive programming. For example, a kids/mom program where kids can “cook” their favorite meals alongside a celebrity chef, after which the mother can cook that dish in real life.

AOL made a large leap forward in unifying and enhancing its digital video offering. It launched the AOL On Network, a new video platform that encompasses AOL’s entire video offering. AOL On includes a consumer-facing video hub, on which content will be curated across 14 distinct channels, as well as video playlists that feature both original and partner content. Celebrities, such as Heidi Klum, Adrian Grenier, Christine Valchon, and more, have signed on to curate their own AOL On playlists, and brands will be able to curate playlists as well. All together, AOL said it will provide an audience reach of 57 million viewers across multiple sites and connected TV devices.

Highlight:
The Huffington Post Streaming Network (HPSN), which is slated to arrive in June. It will stream 12 hours of live programming each weekday. AOL has structured the network to support a handful of category exclusive sponsors, who can partner and integrate content “deeply” into the live show. Aside from that, the content on HPSN will also be broken down into short-form videos that can be viewed on-demand. That’s not all, the Huffington Post will also get the iPad magazine treatment, and additional sections will be launched that allow brands to partner with content that demonstrates the “values and causes” with which they want to be identified.

VEVO focused on the unique opportunities music video programming is able to provide in connecting brands with audiences. It also framed its capabilities in reaching audiences against that of TV, throwing out numbers such as Katy Perry’s music video for “California Girls” hitting 3.2 million views in one week, which is equal to an episode of GLEE. Furthermore, it touted its ability to reach the all-important 18-35 demographic, as well as its syndication network that spans its own site, YouTube, Yahoo!, Xbox, Facebook, and more.

Highlight:
The ability for brands to target and interact with consumers based on curated playlists created by the users themselves. VEVO said that this manner of short-form music video content being “stitched” together into a long-form format is capable of boosting viewer engagement.

Yahoo! highlighted the wide audience reach of its numerous content verticals, including Yahoo! Finance, Yahoo! Sports, and Yahoo! News, as well as how they (positively) stack up against competitive offerings from other digital companies, including fellow DCNF founding partners. The company also spoke at length about its content strategy, described as providing premium, contextualized content. Yahoo! gathers data about what appeals to a wide array of demographics, which it then packages to brands who want to develop and align with content that would “laser-target” those consumers. Erin McPherson has likened this to “TV on steroids.” The company has also placed an emphasis on collaborations with prominent content creators to develop original programming.

Highlight:
Cybergeddon, a feature film written and directed by CSI creator Anthony Zuiker, in partnership with Norton by Symantec, which counseled the filmmakers on technology and privacy-related issues. The full-length film is about a worldwide technological catastrophe, and will follow a unique distribution model; it will be broken down into several segments and distributed one-by-one exclusively on Yahoo!.

Alloy touted its track record in integrating brands/products into premium online video content, citing awards it has won, including My Day My Life’s Digiday Video Award for “Best Branded Web Series” and the Ad Age “Most Innovative Use of Original Web Video for Merchandising” for Kmart First Day.

Highlight:
Chasing Cobra Starship, a new reality competition series that is premiering in July 2012. Targeted toward the 12-34 demo, the show follows teams of music fans as they embark on a Cobra Starship-centric scavenger hunt in order win VIP access to the band. In a well-timed bit of promotional integration, Cobra Starship performed to close out the event.

Disney Interactive defined its digital content strategy as “Entertainment, with heart.” To that end the company unveiled a slew of original programming targeted toward families, with kids and moms especially in mind.

Highlight:
Daily Shot with Ali Wentworth; a quick morning show where the comedienne delivers news and her perspective on current events/trends. The show is distributed primarily on Yahoo! and Babble, which Disney recently purchased. However, it was announced that the show is coming to the iPhone soon. Ali Wentworth and her production team shot the next day’s episode at Disney’s event.

Now in its fifth year, Digitas’ NewFront featured a lineup of panels that aimed to provide a context for what digital content and social media can offer brands and their agencies. Over 500 Digitas clients and partners attended the event, which starred a wide array of celebrities active in the digital space, including Heidi Klum, Anthony Zuiker, and Ali Wentworth. Panels included “Stuck at the Like,” featuring Mashable’s Adam Ostrow and CMOs from brands such as Xerox and J.Crew, as well as Buddy Media’s CEO Michael Lazerow. This panel aimed to provide insight on using premium content to engage with users, which meant going beyond accumulating basic metrics such as “likes.”

Highlight:
The “Stars of the Social Screens” panel, which featured a discussion between Piers Morgan, Michelle Phan, Felicia Day, and Kristin Chenoweth that covered the importance of authenticity when it comes to connecting with audiences through digital and social platforms.

Scheduled for Mother’s Day, DECA’s re-launch of mom-focused website Momversation.com is centered on creating and providing an online video (short-form, unscripted) destination for women. Partners of the re-launch include NBCUniversal’s iVillage, Discovery, Viacom, Time Inc., and Disney, as well as three major network/content partnerships that the company will announce in the coming weeks. DECA also provided advertisers with data that demonstrated its ability to reach moms online, stating that it attracts 3.9 million monthly uniques on Momversation.com and generates more than 4 million video views per month. Moreover, DECA’s audience data shows that it is 97% female, 78% women between the ages of 25 and 44, 31% households with an income above $100,000, and 73% households with an education level of college or above.

Highlight:
In July, DECA will extend its M-Network on to YouTube, and said it will result in a roll-up of hundreds of top women’s channels and websites.

The Interactive Advertising Bureau NewFront was actually a three-for-one deal, with Funny or Die, The Daily, and The Onion each presenting their capabilities in the online video space. Here are the highlights from each:

FUNNY OR DIE:

• Some monthly stats: 14.6 million unique visitors; 24.1 million visits; 43.2 million page views; and 63.5 million view views.
• Customized Branded Entertainment: The Funny or Die team touted its ability to provide brands with services that span the content creation chain, from development to distribution at scale. It defined its value proposition as a partner that offers “Hollywood production” quality content, personalized to a brand’s specific campaign and/or goals.
• “First Look” Content Distribution: A partnership with National CineMedia will result in the national cinema advertising network carrying Funny or Die content. Through this, Funny or Die is offering an audience reach beyond at a wider scale as it would create customized branded content, which would then be able to be screened across NCM’s network.
• Billy on the Street: Picked up for a second season by Fuse Networks; a “cash cab”/”man on the street” style game show with a twist: the final round is subjective, based on the opinions of the host, Billy Eichner.

THE DAILY:

• An iPhone version of the popular iPad magazine is on the way (“really soon”).
• Has a custom video channel on Samsung TVs.
• Has pieced together a video production team of industry veterans hired from the likes of Viacom and ABC, and has “ramped up production” of video content.
• The Daily’s Weekly News Network: A puppet-based news show that will expand to more devices, including, as noted earlier, the iPhone.
• Launching the Rocket: A reality series where the host performs interesting stunts, such as going on 50 dates in 50 states, or participating in a paintball battle with active-duty Marines. The short-form series will feature a wide range of one-off episodes and content, creating multiple opportunities for brand participation.

THE ONION:

• The Onion highlighted the Onion News Network, as well as existing series that lampoon popular today’s news programming/culture, including Today Now! (morning news); Tech Trends (tech news); Onion Sports Dome (ESPN/SportsCenter); Star Fix (entertainment news); and WONN-5 (local news). The Onion mentioned how it can take existing promotional practices on actual news programs (e.g. ESPN’s use of sponsored segments) and do something similar with brand partners on its fake news segments.
• The Night Spot (a send-up of late night talk shows with a host in the vein of Jay Leno); Pop Smear (satirizing entertainment/gossip bloggers and TMZ); The Gab (roughly based on The View); among others.
• Outside of its fake news content, The Onion also focused on its other prominent digital property: The A.V. Club. The entertainment news and culture website will offer its own selection of original programming, including, but not limited to Pop Pilgrims (a “pop culture” travel show that visits famous film landmarks) and Stand Down (a cartoon series where a comedian is invited to recount a memorable stand-up gig, which is then animated into a short video).

NBCUniversal rolled out a slew of digital offerings spanning its portfolio of digital and television properties, which it said reaches 78 million monthly uniques, and 110 million if including NBC.com and Weather.com. It announced a unified “digital programming event” for Cyber Monday this coming November, and the Universal Games Network (UGN), a new casual and social gaming platform that is integrated across NBCU properties. It will aggregate all of NBCU’s games; will allow players to amass points and redeem them for real and virtual goods across all NBCU gaming properties; and will be integrated with Facebook Connect.

Highlight:
Bravo Media’s 80 Plates Tweet Challenge: Teaming up with Infiniti, Bravo will give fans of the network’s new reality culinary competition series Around the World in 80 Plates a chance to win plane tickets to a destination featured on the show. By tweeting #80plateschallenge every week, fans can get closer and closer to pinpointing the location of the plane tickets (to that week’s featured destination) on an interactive map on BravoTV.com and on Bravo mobile. The tickets can be in one of 10 secret U.S. cities each week.

Google and YouTube profess an interesting point of differentiation when compared to all of the other presenters at the DCNF: YouTube has no interest in being a digital network. It wants to be a digital MSO, where it will get out of the way and provide a platform for brands and content creators to develop original channels, targeted to specific audiences. However, unlike the traditional MSO, YouTube is willing to front the money to develop these channels and networks (admittedly, it has to). When the initiative was first announced last fall, YouTube said that it would front $100 million toward developing premium original content for the site. At its Brandcast, it pledged $200 million to promote the 100 original content channels across both YouTube and the Google Display Network. In other words, Google and YouTube are very serious about this ongoing original programming initiative. In fact, by the end of July, it said there is going to be 25 hours of new original content on YouTube every day.

Highlight:
Aside from the Jay-Z performance, YouTube unveiled WIGS, a new channel that focuses on scripted dramatic series and short films about the lives of women. The channel is the brainchild of filmmakers Jon Avnet (Black Swan, Risky Business) and Rodrigo Garcia (In Treatment). The content on the channel will features the likes of Virginia Madsen, Stephen Moyer, Jennifer Garner, Alfred Molina, Julia Stiles, all of whom star in the first three series, with Jennifer Beals, America Ferrera, Dakota Fanning, Alison Janney, and others signed on to appear in upcoming series. The content will also feature documentaries, behind-the-scenes videos, and other unscripted content, all starring female leads. The channel is set to launch in May.

Later – Sahil
Sahil Patel, Associate Reporter for Cynopsis Digital
05.07.12

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