Cynopsis: DIGITAL
02.13.13

Good morning. It’s Wednesday, February 13, 2013, and this is your first early morning digital briefing.

FreeWheel has released its latest Video Monetization Report, which highlights video viewership trends for Q4 2012 as well as full-year 2012, based on aggregated data from the company’s entertainment clients, including FOX, ESPN, VEVO, and AOL, among others. The company says its Q4 findings are derived from almost 15 billion video views and more than 13.5 billion video ad views. Among the major findings:

Web video ads are becoming more like TV spots: In 2012, the standard 30-second TV spot became the most used format on the web (42% of all digital video ads). This is at the expense of 15-second spots, which now account for 34% of video ads.

Ad volume continues to grow: Q4 video ad volume rose 47% year-over-year, fueled largely by holiday spending and increased ad loads. In fact, web videos of 20+ minutes now have 9.4 video ads per video view, which FreeWheel says is the most since it began reporting this data in 2010, and up from 6.9 per video view during Q4 2011. Q4 pre-roll volume increased 45% year-over-year and Q4 mid-roll volume jumped up 60%.

Video ad completion rates are at an all-time high: 93% for long-form content (20+ minutes); 81% for mid-form content (5-20 minutes); and 68% for short-form content (less than 5 minutes).

Video viewing on non-PC/Macs is growing, and iOS is leading the charge: In Q4 2011, viewing on devices like smartphones, tablets, and gaming consoles accounted for 2% of total video viewing volume. By Q4 2012, that number is up to 12%. More than 1.8 billion video views occurred on these devices in Q4 2012. Apple devices continue to dominate, with iOS devices accounting for 60% of non-PC/Mac video viewing. Android devices represent 32% of such video viewing.

Netflix and DreamWorks Animation will co-develop and launch an original series for kids based on the animation studio’s upcoming summer film, Turbo. The adaptation, which will be titled Turbo: F.A.S.T. (Fast Action Stunt Team), will debut on the streaming service this December across all Netflix territories. DreamWorks Animation’s Turbo is a 3D comedy about a snail, armed with the power of super-speed, going on a journey to compete in the Indianapolis 500. The film’s voice cast includes Ryan Reynolds, Paul Giamatti, Michael Pena, Luis Guzman, Bill Hader, Maya Rudolph, Snoop Lion, and Samuel L. Jackson. It will be out in theaters on July 19, 2013. Turbo: F.A.S.T. will pick up where the film leaves off, following the snail and his race crew as they travel and compete around the world. Presumably, the show will be accessible through Netflix’s Just for Kids section, with every episode becoming available from the very beginning. Netflix’s deal with DreamWorks Animation also consists of the studio’s theatrical releases, which will arrive on the service in the US beginning with the studio’s 2013 film slate.

Fox and Comcast have struck a new multiplatform distribution deal to deliver FOX TV programming to Xfinity TV customers across TVs, computers, smartphones, tablets, gaming consoles, and connected TVs. The deal covers live and on-demand programming from 20 Fox Television Stations as well as FOX-owned channels like FX, Speed, Fuel TV, National Geographic Channel, Fox Deportes, and more. This also includes on-demand access to current season episodes of shows like Glee, Bones, The Simpsons, Sons of Anarchy, Justified, and The Americans. Financial terms of the deal were not disclosed. Per the announcement, the deal also includes “a framework for both companies to continue to collaborate on new multiplatform offerings so that the companies can take advantage of new technologies and programming through the life of the deal, including Comcast’s advanced advertising and ad systems integration services.”

A+E Networks has launched new TV Everywhere apps for the iPhone and iPod Touch. Last December, the company unveiled iPad apps for A&E, History Channel, and Lifetime, all of which allowed users to watch full episodes, movies, and exclusive video clips from A+E Networks. Back then, A+E said it would roll out iPhone and iPod Touch versions of these video apps in early 2013, with Android versions to come sometime during the first quarter. The rollout includes a new iCloud sync feature, which allows users to resume watching an episode from wherever they left off on any iOS device. Comcast Xfinity TV subscribers who authenticate with the apps will have access to more content, including full previous seasons of shows from A&E, History, and Lifetime.

HBO Go and MAX Go now support Apple’s AirPlay service, allowing users to stream shows from their iOS device to their TV sets. The AirPlay compatibility was announced by Eric Kessler, President and COO of HBO, yesterday at AllThingsD’s D: Dive Into Media 2013 conference. Kessler also said that HBO Go and MAX Go will be available on Apple TV devices “at some point.” As for offering the apps on a standalone basis — that is without requiring the user to have a TV subscription to HBO — Kessler said that the economics today don’t support this.

The second season of Video Game High School (VGHS), a web series co-produced by Rocket Jump Studios and Collective Digital Studios, has set a new Kickstarter record for receiving the greatest amount of funding for content. Enlisting more than 10,000 backers, show creators Freddie Wong, Brandon Laatsch, and Matt Arnold have raised $808,341, with some crowd-funders contributing more than $10,000 each. “I believe the ability for creators like ourselves to directly reach our audience is the future of all independent creative endeavors — from film and video to music,” said Wong in a statement. VGHS is set in an alternate reality where professional video gaming is the biggest sport in the world. It follows an aspiring pro gamer who has received an invite to a prestigious gaming academy. The first season of VGHS, which generated more than 50 million views across YouTube and RocketJump.com, had received close to $275,000 in Kickstarter crowdfunding. The second season will span six, TV-length episodes (totaling 160-180 minutes). Earlier this year, Collective Digital Studio secured a brand integration deal with Dodge. It will also go toward supporting the production of the second season, which is scheduled for later this year. Freddie Wong is one of the top YouTube creators/stars. His FreddieW YouTube channel has more than 4.6 million subscribers and over 790 million views to date.

A CYNOPSIS MESSAGE FROM THE STREAMY AWARDS

Jun Group has launched a new opt-in video ad unit called PostView. For advertisers, the unit gives away all video views for free, only charging them if/when the viewer takes an action — such as downloading a coupon, tweeting, or visiting the brand’s website — once the video has been completed. To encourage post-view interaction, Jun Group offers consumers rewards like ad-free music or free Wi-Fi. Before launching the unit, Jun Group says it conducted a study of more than 100,000 consumers to see how such a reward structure would fare. According to the study, consumers who earned a reward for completing a post-view action were three times more likely to engage with the brand, and were 41% more likely to click on other, non-incentivized offers once they visited the brand’s site. In addition, activity on secondary pages on the brand’s site was 17% higher among users who earned a reward for completing a post-view action.

Adap.tv is now offering In-Target Audience Optimization, a new solution that optimizes audience targeting based on verification data from Nielsen’s Online Campaign Ratings (OCR) and comScore’s validated Campaign Essentials (vCE). Developed on its video ad, Adap.tv says In-Target Audience Optimization uses a proprietary algorithm to predict audience composition across any publisher. It’s designed to enable buyers to specify their desired demographic as well as instantly forecast their in-target delivery, in-target CPM, and TRP estimates. The solution then targets impressions that are expected to index high against OCR and vCE, while minimizing ad spend. For sellers, Adap.tv says In-Targer Audience Optimization gives them the ability to deliver TV-like targeting against their inventory. “The advantage of In-Target Audience Optimization is that it amplifies the effectiveness of Nielsen [OCR] and comScore [vCE] data for both buyers and sellers,” said Tony Gabriner, President of Adap.tv, in a statement. “In recent beta tests, we’ve seen on average, a 30% life in in-target audience delivery.”

Rightster has acquired Preview Networks, an international distributor of movie trailers. With the deal, Rightster is able to extend its YouTube account management and digital media sales services across Europe, including France, Germany, Italy, Spain, and the Nordics. Preview Networks has existing deals with more than 300 content rights-holders and 2,500 publishers, including major brands like Disney, MTV, and Sony. As part of the deal, key members of Preview’s management team, including Andy Chen (CEO), Charles Delamain (COO), Patrick Rodies (CTO), and Peter Vilhelmsen (CFO) will join Rightster.

66% of advertisers use paid social media advertising in conjunction with other online advertising, and 51% use it alongside offline advertising, according to a new report from Vizu, a digital ad tech company owned by Nielsen. In fact, Vizu’s study finds that only 5% of advertisers run “primarily social-only campaigns.” When advertisers were asked which online tactics they typically run alongside their paid social media advertising, the top three responses were: online display (83%), online video (46%), and mobile (40%). When looking at the offline world, advertisers primarily like to combine their paid social media ads with print (52% of respondents) and TV (37%).

Veria Living has appointed Joseph Cho as its first ever VP/Digital. “Joe comes to Veria Living with a strong track record of managing high performance cross-functional teams. As we look to expand our brand, his extensive background in leading digital projects from conception to end makes him a welcome addition,” said Paul Cestari, GM of Veria Living. Based in the health and wellness media company’s NY headquarters, Cho will report directly to Cestari.

NCM Media Networks (NCM) is expanding its marketing partnerships team in Chicago. Leading the team will be Stuart Walker, who has been promoted to SVP/Marketing Partnerships. In his new role, Walker will be responsible for new business development as well as partnering with NCM’s clients across diverse categories to help brands reach consumers through in-cinema advertising, as well as online and on mobile devices. Walker will continue to report to Bennett Fogel, NCM’s EVP/Sales and Marketing Partnerships. Stella Barrett is the other addition to the marketing partnerships team, now serving as NCM’s Marketing Partnerships Account Director. She will now report to Walker.

Matt Stein has been promoted to SVP/Marketing, Promotion, and Creative Services at BBC America, effective immediately. In his new role, Stein will continue to oversee all marketing, advertising, and promotional activity for BBC America, and will serve as the central point of contact for brand relations in the UK. He will continue to report to Perry Simon, GM, BBC America.

Vibrant Media has named James Coraci as its new VP/Sales, Detroit. He will be responsible for managing company sales development and customer acquisition and retention, primarily in the automotive sector. Prior to joining Vibrant, Coraci was Sales Director at Undertone and, before that, Sales Director at The Weather Channel.

A CYNOPSIS MESSAGE

Stan Lee’s POW! Entertainment and Michael Eisner’s independent studio, Vuguru, operate a YouTube original channel called Stan Lee’s World of Heroes. This week the channel is unveiling two new videos. Chatroom of Solitude, which debuted on the channel yesterday, features an online video hangout between famous heroes and villains as they complain about the tough aspects of their lives. Written by Jeff Lewis (The Guild) and directed by Sean Becker (The Guild), the video stars Colin Ferguson, Felicia Day, Phil Lamar, and Stan Lee. The second video, which premieres today, is called Super Speed Dating. It’ll feature superheroes like Batman and Wonder Woman as they try their hand at the world of speed dating (I’m a sucker for anything involving Batman).

A CYNOPSIS MESSAGE

Later – Sahil
Sahil Patel, Associate Editor for Cynopsis Digital
02.13.13

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