Are All Screens Created Equal? 7-25-2012 A Research Study by the - PowerPoint PPT Presentation

Are All Screens Created Equal? 7-25-2012 A Research Study by the IPG MEDIA LAB

RESEARCH QUESTIONS 1) Does device/screen have an impact on the effectiveness of video ads? 2) Do other variables play a role in video ad effectiveness? - Ad clutter - Creative quality - Type of video content - Location of consumption

Ownership of Video Playing Devices has Skyrocketed A v e r a g e d e v i c e o w n e r s h i p h a s d o u b l e d s i n c e 2 0 0 0 A d v e r t i s e r s n o w h a v e m a n y m o r e p l a t f o r m c h o i c e s f o r c o m m u n i c a t i n g w i t h c o n s u m e r s Source: MAGNA GLOBAL estimates based on syndicated and public sources

We spend more time with media than working or sleeping Source: MAGNA GLOBAL estimates based on syndicated and public sources

We are constantly connected to media Source: MAGNA GLOBAL estimates based on syndicated and public sources

If consumers paid attention to all the ads they would be paralyzed Source: MAGNA GLOBAL estimates based on syndicated and public sources

RESEARCH OVERVIEW What: In-Lab Test Across 4 Screens: Connected TV, Linear TV, Mobile, PC Who: Adults 18+, familiar with at least one of the screens, intentionally recruited tourists (n=147) Where: IPG Media Lab in San Francisco When: 5/9/2012 – 5/14/2012

DEMOGRAPHICS Gender Age Range Ethnicity White/Caucasian 44 18-20 11 African American 26 21-29 42 31% Hispanic 24 30-39 23 Female Asian 12 Male 40-49 20 Other 9 69% 50-59 19 Pacific Islander 7 60-69 9 Native American 2 0 10 20 30 40 50 0 10 20 30 40 50

PARTICIPANT USER EXPERIENCE Final Survey, respondents asked unaided 147 participants Assigned to screen(s) and and aided recall recruited into IPG’s lab content type via survey then re-exposed to one ad Participants watched pre- recorded videos on designated screen(s), then answered follow- up survey about media

CONTENT MATRIX • Content was based on participants’ interests. • Ads were matched to content types based on relevancy. • Ad load/frequency was designed to match the typical viewer experience. Content/Advertiser by Screen Screen Avg. # of Ads News iFood Syfy Hip Hop Connected TV Retail, Auto 3 Mobile Phone, Auto Technology, Auto Home Security, Auto PC 4 Mobile Phone, Auto Technology, Auto Home Security, Auto Retail, Auto Mobile Retail, Auto 2 Mobile Phone, Auto Technology, Auto Home Security, Auto Linear TV 11 Mobile Phone, Auto Technology, Auto Home Security, Auto Retail, Auto

KEY METRICS Attention Excitement Ad Recall How long do participants Do participants show visually fixate on the physical signs of screen? excitement/arousal? Observed Data Observed Data Eye-tracking hardware Biometric bracelets How much attention do How engaging did Did participants recall participants feel they would Self-Reported participants find the seeing the advertisement? Self pay outside the lab? Data content? Reported Survey Data Survey

F i n d i n g # 0 1 Screen type clearly plays a role in ad effectiveness, with TV lagging behind in ad recall Unaided Recall by Screen 50% 43% 38% 40% 35% % A d R e c a l l U n a i d e d R e c a l l i s t h e p e r c e n t o f 30% p e o p l e w h o 27% c o r r e c t l y r e c a l l e d s e e i n g t h e b r a n d a d v e r t i s e d . 20% 10% 0% Connected TV Mobile Linear TV PC = Statistically lower than CTV and PC at 90% confidence Linear TV n=64; PC n=63; Mobile n=71; CTV n=43

F i n d i n g # 0 2 Each screen, however, elicits somewhat similar levels of arousal Observed Excitement by Screen 50% 40% % o f T i m e E x c i t e d Distinct moments of excitement can 30% be seen in each unique record 20% O b s e r v e d E x c i t e m e n t i s t h e p e r c e n t o f t i m e a p e r s o n s h o w s s i g n s o f a r o u s a l b a s e d o n b i o m e t r i c b r a c e l e t s . 10% 8% 7% 5% 4% 0% Connected TV Mobile Linear TV PC Connected TV n=43; Mobile n=71; Linear TV n=64; PC n=63

Younger viewers appear to get excited by big screens Observed Excitement by Age Linear TV Connected TV PC Mobile 25% 20% % o f T i m e E x c i t e d 15% 10% 10% 8% 8% 7% 5% 4% 4% 3% 3% 0% 18-29 30-49 18-29 n=77; 30-49 n=57

F i n d i n g # 0 3 Attention levels are all high, particularly for screens consumers are most familiar with – TV and PC Observed Attention by Screen 120% 100% F i x a t e d A t t e n t i o n 87% % o f T i m e w i t h 85% 79% 80% 74% 60% 40% O b s e r v e d A t t e n t i o n i s t h e p e r c e n t o f t i m e a 20% p e r s o n s p e n d s l o o k i n g a t t h e s c r e e n , b a s e d o n e y e - t r a c k i n g d a t a . 0% Connected TV Mobile Linear TV PC Connected TV n=43; Mobile n=71; Linear TV n=64; PC n=63

Females tend to be more attentive; males show higher levels of excitement Observed Attention by Gender Observed Excitement by Gender 100% 100% 87% 87% 86% 82% 81% 80% 75% 75% 75% 63% 50% 50% Male Male Female Female 25% 25% 10% 9% 5% 5% 5% 4% 3% 1% 0% 0% Connected Mobile Linear TV PC Connected Mobile Linear TV PC TV TV Linear TV n=40 (28 men, 12 women); CTV n=25 (16 men, 9 women); Internet 56 (35 men, 21 women); Mobile n=41 (30 men, 11 women)

F i n d i n g # 0 4 In summary, TV performs well on attention and excitement, but that does not translate to strong recall Key Metrics for Linear TV (∆ from Average) Observed Attention 4% Observed 1% Excitement Unaided Recall -9% -15% -10% -5% 0% 5% 10% 15%

F i n d i n g # 0 5 Ad clutter appears to undermine the ad effectiveness of TV Unaided Recall & Ad Clutter by Screen Unaided Recall Percent Ad Time 50% 40% Ad to Content Ratio 39% 40% 35% TV = 16 out of 60 minutes (27% ads) 29% 30% Hulu = 6 out of 60 27% minutes (10% ads) 20% YuMe = 5 out of 60 minutes (8% ads) 10% 12% 9% 8% 0% Connected TV Mobile Linear TV PC Linear TV n=64; PC n=63; Mobile n=71; CTV n=43

F i n d i n g # 0 6 As expected, creative quality is a strong driver of ad recall For the most part, ad effectiveness aligns with reported ad likeability Unaided Recall & Ad Likeability by Advertiser Unaided Recall Ad Likeability 75% Ad Likeability “On a scale of 1 -10, how much did you like the 50% ad/you just saw?” 52% 48% (scored as top 3 box) 36% 25% 27% 26% 22% 19% 13% 8% 7% 0% Retail Auto Home Security Technology Mobile Phone Unaided Recall: Auto n=33; Home Security n=67; Retail n=47; Technology n=76; Mobile Phone n=61

F i n d i n g # 0 7 Content must be engaging to attract and hold attention Survey Metrics by Content Type ( ∆ from Average) Reported Engagement Observed Attention News 0% -1% Hip Hop 0% +2% iFood +5% 4% SyFy -6% -5% -10% -5% 0% 5% 10% -15% -5% 5% 15% Observed Attention/Observed Excitement: News n=53; Hip Hop n=41; iFood n=49; SyFy n=32;

F i n d i n g # 0 8 Regardless of the screen, consumers are most likely to watch video in comfortable spots, such as the couch or in bed Location by Screen Connected W h e r e d o yo u t yp i c a l l y Mobile PC Linear TV Total TV w a t c h … ? 33 26 24 35 118 Home, on the couch 23 19 12 18 72 Home, in bed 14 18 7 9 48 Home, sitting at a desk or table 11 9 11 12 43 Home, while doing an activity 4 3 7 Office 6 9 3 4 22 Other, Neither Home nor Work 91 84 57 78 n=

F i n d i n g # 0 9 Surroundings also play a role in ad effectiveness, with consumers particularly attentive while in bed Greater attentiveness is likely related to less multi -tasking and distraction in bed Reported Attention by Location/Screen ( 1 0 = M a x ) H o w m u c h a t t e n t i o n d o Mobile PC Connected TV Linear TV Total yo u g i ve w h e n yo u w a t c h x i n y l o c a t i o n ? 6.2 7.3 6.1 6.3 6.4 Home, on the couch 6.6 7.4 5.7 7.4 6.8 Home, in bed 5.8 7.1 7.9 6.8 6.8 Home, sitting at a desk or table 5.0 6.1 5.0 4.4 5.1 Home, while doing an activity 5.5 6.7 6.0 Office 5.5 6.7 6.0 Other, Neither Home nor Work 91 84 57 78 n=

Are All Screens Created Equal? 1) Overall, the much-hyped screen size did not play a role in ad effectiveness. 2) However, other controllable variables did – 3C’s. Ad Clutter Creative Quality Clutter – TV was effective at garnering attention and eliciting emotion, but fell short on ad break-through because of clutter Content Context Creative – Ad effectiveness varied greatly by ad Physical Context Context - Content – Most engaging content attracted the most attention Physical – Lean-back environments with Video Ad less distraction, such as at home in bed, enhance attentiveness Effectiveness