Industry Report 2014 Top 500 Brands on YouTube The Top 500 Brands on YouTube have grown average monthly views by nearly 70% in the past year SUMMARY STATS FOR TOP 500 BRANDS In our second annual report about the top brand channels on 722 million YouTube, there is no mistaking the macro trend: Brands are Total Monthly Views 1.4 million increasing their commitment to marketing on YouTube and recognizing a substantial return. Our report analyzes OpenSlate data on the Top 500 Average Monthly Views non-entertainment brands on YouTube. These are marketers 41 million who aren’t typically required to be in the content creation Total Subscribers 82,000 Average Subscribers 136,000 Average Views Per Video business by nature, but have chosen to do so largely based on the “earned media” opportunity offered by YouTube and its monthly US audience base of more than 120 million. The most successful brands in our report have adopted audience development strategies employed by the most successful YouTube channels overall: They’re consistent, on brand and very focused on growing their YouTube subscribers. As a result, the Top 500 brands on YouTube have seen their average subscriber Top 500 Brands selected based on OpenSlate data, week of March 24, 2014, and excludes Entertainment category brands. © Outrigger Media, April 2014 base skyrocket from 37,000 to more than 82,000 in the past 12 months. 1 Overview by Industry TOP 500 BRANDS ON YOUTUBE The Top 500 Brand Channels by Industry Our top three marketer categories – Tech, Auto Technology and Retail – account for nearly two-thirds of the Retail Top 500 channels. There are 131 channels in Tech Automotive alone, with Google accounting for 24 of them, including successful channels for Chrome, Consumer Goods Mobile, Developers, Glass and a recruiting Food & Beverage channel called Life at Google. Travel & Tourism Business & Finance Samsung boasts 17 channels in our Top 500 Fashion report – the second highest for a single brand Alcohol – with their main mobile channel clocking in at over 800,000 subscribers alone. Restaurants Education The top 5 brands in each category typically 0 35 70 105 140 account for 50% of the measured category overall. They are listed below, in order of subscribers. TOP 5 BRANDS IN EACH INDUSTRY By Subscribers Alcohol Automotive Business & Finance Consumer Goods Budweiser Corona (Music) Heineken Bud Light Dewars (India) Audi BMW Chevrolet Mercedes-Benz Ford SpaceX Boeing Geico GE Lockheed Martin Luxy Hair Old Spice Orabrush (CureBadBreath) Real Techniques L’Oréal Paris (Spain) Education Fashion Food & Beverages Restaurants TED Talks (Director) Stanford University NASA (Explorer) Harvard Harvard Business CHANEL Dior Burberry Ford Models Louis Vuitton Red Bull Pepsi Monster Energy Drink Coke (StudioAtMTV) Coca-Cola Burger King Starbucks Chipotle McDonald’s Taco Bell Retail Technology Travel & Tourism Nike (Football) DC Shoes Blendtec Victoria’s Secret LEGO Google Apple GoPro Camera Samsung Mobile Google Chrome Disney Parks LonelyPlanet Downtown Dubai Turkish Airlines WestJet © Outrigger Media, April 2014 2 Audience The huge success of TED Talks in the context TOP 500 BRANDS ON YOUTUBE 300,000 of our Education channels (just 10 of the Top Average Subscribers Per Channel 500) drove that industry to the top spot for average subscriptions. With over 2.2 million 200,000 subscribers, TED ranks third overall for this ho nt s l e Al au ra co nc na ss Re & st Fi To u Bu si Tr a ne ve Au l& to Fa m sh ris m io n iv e ot oo G er m su C on Fo of sustained momentum from omnipresent ds il ta hn Te c od & Ed Re ol og e ra g uc va at view counts in early 2014, with a combination y 0 Be The Food & Beverage category dominated 100,000 io n metric in our report. players like Red Bull and excellent campaigns from the likes of PepsiMax (feat. Jeff Gordon) 5,000,000 Average Monthly Views Per Channel and Lipton Tea (feat. The Muppets). 3,750,000 YOUTUBE MEDIA BUYER SURVEY In a survey of 313 online media planners and buyers conducted between March 6 and 2,500,000 1,250,000 nt s ds ra au st Re su el m & er G To u oo ris m iv e m on C Bu si Tr av ne Au Ed to uc at Re ot ta io n n Fa ss & Te c Fi hn ol na sh io nc og e l ho co Al Fo YouTube spend in the next 12 months. od & Be ve ra those buyers, 41% planned to increase their y 0 ge media on YouTube in the past 12 months. Of il March 22, 2014, 208 had planned or bought 400,000 Average Views Per Video Consistent with a sales strategy that appeals to Television budgets, YouTube media buyers were 49% more likely to claim that their online video dollars were transitioning from traditional TV budgets. 300,000 2014 2013 200,000 100,000 Our online survey was conducted between March 6 and March 22, 2014, at io n uc Ed ot iv to m Au na na Fi Bu si n es s & e ce il Re ta m ris To u Tr av e l& ur an ts st a Re um er G oo d s sh io n Fa on s C ol co h Al lo no Be v & d Fo o more than 60 individual agencies were represented in our results. gy 0 12 months. Of those respondents, 96% are employed by ad agencies, and Te ch been directly involved in the planning or buying of YouTube media in the past er ag e and included 208 completed responses from US-based individuals who have © Outrigger Media, April 2014 3 Subscriber Acquisition TOP 500 BRANDS ON YOUTUBE Converting Views to Subscribers YOUTUBE MEDIA BUYER SURVEY Like any social network, YouTube offers brands the opportunity to convert a view Paid Media Subscriber Growth to a connection – one that will see the brand and its content more frequently and reliably in their future YouTube experience. While views can be bought using YouTube’s highly effective TrueView ad unit, subscribers must be earned. And doing so is a science mastered by every successful channel on the platform. The most successful content channels on YouTube overall convert views to subscribers at a rate of 0.5% meaning, on average, every 200 views results in a new subscriber. Brands are far less successful in this endeavor, generally needing In a recent survey of more than 200 YouTube media buyers, we found that adding subscribers to a brand’s channel page was rarely a priority: Is YouTube Subscriber Growth a KPI when you buy media on YouTube? Yes 20% No 80% close to 750 views to draw in just one new subscriber. There are many factors working against brands in this regard, including an inconsistent content and However, buyers that do consider subscriber publishing strategy and the likely impression by a viewer that whatever drew 4x more likely them to the brand’s content in the first place will not be repeated. A high percentage of TrueView driven (paid) views by brands also has a large impact. growth an important KPI are to develop ad creative especially for their YouTube media buys. They’re also 26% less likely 1,400 Number Of Views To Drive One Subscriber to demand audience guarantees from 1,050 comScore or Nielsen. 700 350 ol Al co h Au to m ot iv e nc e ts na si ne ss & Fi ur an ge ta ra ve R es Bu Fo od & er Be G oo ds ris m m su C on Tr av el & To u sh io n l Fa y et ai R lo g no Te ch Ed uc at io n 0 Shortcomings aside, one real driver of this discrepancy may simply be that brands haven’t found enough utility in their YouTube subscriber base. Compared to a Facebook friend or a Twitter follower, YouTube channels are offered no direct or targeted connection to their subscribers. Since brands are concerned with selling product or service, and not ads on their YouTube channel, there’s a completely different value proposition at work on this front. © Outrigger Media, April 2014 4 YouTube Strategy TOP 500 BRANDS ON YOUTUBE Missing an Opportunity With a combination of beautiful campaigns, viral success and big media budgets, Duracell, Visa, Walmart and Lipton cut through the clutter to deliver big views in Q1. 30,000,000 8,000 22,500,000 6,000 15,000,000 4,000 7,500,000 2,000 0 Duracell Visa Walmart YouTube Content Strategy Just 13% of YouTube media buyers in our survey “often” create content specifically for YouTube campaigns. Never Sometimes Often 0 Q1 Views YOUTUBE MEDIA BUYER SURVEY Q1 New Subs Lipton Duracell Views Per New Sub Visa Walmart Lipton But these same four brands pulled up well short of the potential of that success, converting views to subscribers in the bottom 1% of our study. But those buyers were 2x more likely to increase their spend with YouTube in the next 12 months. Repurposed TV Commercials Our survey of YouTube media buyers found that 33.2% “always” repurpose TV commercials in their YouTube media buys. These repurposed commercials often represent a significant amount of the overall content on a brand’s channel page. Average Video Length by Industry Education Technology 60 Fashion Percentage of Channel Content That Is Repurposed Commercials 45 Alcohol Business & Finance Automotive Travel & Tourism Consumer Goods 30 Food & Beverage Restaurants Retail 15 0 300 600 900 1,200 Seconds y no iv Te ch ot lo g e il m Re G ta to Au ds oo ge er m su & od C on Be ve ra io n uc at Fo ris m © Outrigger Media, April 2014 Ed n ol Tr av e l& To u co h Al io sh Fa Fi & Bu si ne ss Re st au na ra nc nt s e 0 5 Brands to Watch TOP 500 BRANDS ON YOUTUBE Audi of America SlateScore: 574 Monthly Views: 881K Subs: 63K Challenger brand no more. Audi (U.S.) introduced the “Stay Uncompromised” A3 campaign in Q1 2014 with the help of Doberhuahua and brand endorsers like actor Ricky Gervais, chef David Chang and boxer Claressa Shields. The luxury auto brand has maintained a consistent and engaged audience and it’s clear they’re committed to creative and original content. Target SlateScore: 563 Monthly Views: 429K Subs: 24K The SlateScore measures quality and is calculated from data about a channel’s Engagement, Consistency, Influence, Momentum and Reach. Just like its stores, Target’s YouTube channel has something for everyone. The American retailer repurposes commercial spots, which boosts channel views, but they don’t rely on these ads alone. Target’s content includes instructional beauty and DIY style features, how-to home decorating and entertainment tips, plus music and movie content. A playlist dedicated to its Spanish-speaking audience shows a brand that is in tune with its digital audience. Dell SlateScore: 523 Monthly Views: 809K Subs: 31K Some of the best technology brands on YouTube blend storytelling alongside promotional product videos and the PC giant does just that with its recent “Beginnings” campaign focused on reinvention. The Dell Vlog channel organizes content into playlists of industry events, product launches, case studies and an entrepreneur help center. Dell’s consistent publishing keeps its 30,000+ subscribers engaged and returning for more inspiration. The North Face SlateScore: 556 Monthly Views: 1.33 MM Subs: 44K The North Face Video channel has amassed a following on YouTube by appealing to outdoor enthusiasts and weekend warriors while capturing extreme athletic endurance feats and the training it took to get there. The high-quality content is grouped into playlists around series focused on one sport and/or location. While this type of publishing (and content) does not lend it self to consistency, The North Face has an influential channel thanks to its adventurous appeal. Cover Girl SlateScore: 546 Monthly Views: 2.1 MM Subs: 25K Beauty brand Cover Girl engages make-up enthusiasts with their how-to, beauty tips, and DIY content. The Procter & Gamble brand has ambassadors including Ellen DeGeneres, P!NK, Katy Perry and Sofia Vergara to help spread the message of female empowerment in its “Girls Can” campaign, and they have also recognized Seventeen Magazine’s Beauty Smarties as instructional content collaborators for their younger audience. © Outrigger Media, April 2014 6 Top 10 Brands by SlateScore OpenSlate is a video analytics platform that tracks more than 160,000 ad-supported channels on YouTube and measures their ability to attract and engage an audience. Our data about quality, brand safety and subject matter expertise is used by brand marketers to target the most effective and appropriate YouTube inventory at scale. For more information, visit: openslatestudios.com. The SlateScoreTM is on a scale from 1-1000 with higher being better. Scores of 500 or higher are in the top 7% of all channels in OpenSlate. Engagement, Consistency and Influence are calculated on a a scale of 1-10 with higher being better. © Outrigger Media, April 2014 781 737 728 692 683 671 666 663 655 647 TOP 500 BRANDS ON YOUTUBE Red Bull 8.6 ENGAGEMENT 7.8 CONSISTENCY 9.7 INFLUENCE TED Talks (Director) 7.6 ENGAGEMENT 7.8 9.6 7.6 9.4 CONSISTENCY INFLUENCE GoPro 8.6 ENGAGEMENT CONSISTENCY INFLUENCE Luxy Hair 8.1 ENGAGEMENT 7.3 CONSISTENCY 9.3 INFLUENCE Samsung Mobile 8.1 ENGAGEMENT 7.6 CONSISTENCY 8.5 INFLUENCE Coca-Cola 8.5 ENGAGEMENT 7.6 CONSISTENCY 9.1 INFLUENCE Nike (Football) 7.1 ENGAGEMENT 7.5 CONSISTENCY 9.4 INFLUENCE Victoria’s Secret 7.1 ENGAGEMENT 7.7 9.3 7.3 9.3 6.9 9.3 CONSISTENCY INFLUENCE Pepsi 7.4 ENGAGEMENT CONSISTENCY Nokia 7.2 ENGAGEMENT CONSISTENCY INFLUENCE INFLUENCE 7