YouTube in the Media Mix EMEA Market Insights YouTube Confidential and Proprietary YouTube Research Insights Summary 1. YouTube ads stand out 2. YouTube drives awareness and behaviour change 3. Attention on YouTube is higher than on TV 4. YouTube delivers incremental reach and drives sales 5. YouTube works in the Netherlands YouTube ads stand out Ads stand out on YouTube and are noticed without interrupting the user experience YouTube drives incremental awareness and changes behaviour X-men is one of the biggest superhero franchises, and it seems only fitting that we promote Wolverine with the biggest YouTube takeover ever. We know fans will want to spread the word and YouTube will give them the opportunity to do so. Bettina Sherick, VP Marketing, 20th Century Fox YouTube successfully drove huge lifts to unaided awareness – up to 21% Top of Mind and Spontaneous Awareness +21% +15% 51% 43% +19% +15% 39% 31% 28% 30% 20% 16% TopTop of Mind of mind Awareness Spontaneous Spontaneous Awareness of mind Top Top of Mind Awareness Top of mind awareness: Mentioned the Wolverine movie as their first answer. Spontaneous awareness: All spontaneous answers (including top of mind). Significant Difference (95%-Reliability) Q: Which films are you aware of that are coming out at the cinema in the next few weeks? UK: Exposed n=982, Unexposed n=1,337 ES: Exposed n=1,012, Unexposed n=1,097 Spontaneous Spontaneous Awareness Exposed Unexposed It was equally successful across all demographics Unaided awareness (Top of Mind + Spontaneous) <25 yrs 26-39 yrs +15% +22% 43% +14% 40+ yrs (UK) 53% 29% 22% 36% 28% 22% 16% Spontaneous Spontaneous Aware 13% TopTOMA of mind Spontaneous Spontaneous Top of mind TOMA Awareness +20% +23% 50% +19% +21% 60% 53% Spontaneous Awareness +21% 45% +17% 34% 38% 39% 30% 24% 30% 17% 19% TopTOMA of mind 37% +16% 44% 30% TopTOMA of mind +15% +17% Spontaneous Aware Spontaneous UK: 26-39 n=512, 40+ n=300 TOMA Top of mind ES: 26-39 n=489, 40+ n=207 Spontaneous Spontaneous Top of mind Spontaneous TOMA Spontaneous Awareness Awareness Significant Difference (95%-Reliability) Exposed Unexposed Following masthead exposure, 8% more of the target audience stated intent to watch the movie in the cinema Total Audience Male 16-25 +8% +4% 43% +2% 43% 49% 51% 45% 50% 43% 39% UK ES UK Desire to see movie in cinema includes selection of any of: “I’ll see the film in opening week-end at cinema” “I’ll see the film within the first week or so of being released at the cinema” “I’ll see the film at the cinema eventually” Significant Difference (95%-Reliability) Q: Which of the following best describes how you intend to view the film X-Men Origins: Wolverine? ES Exposed Unexposed YouTube users are also highly likely to share content 35% of all respondents had shared a link to an online movie trailer. Nearly 50% of UK respondents had discussed or shared information about the Wolverine film 5 weeks after release 46% I have already discussed or shared information about this film 35% 32% 18% I have shared an online movie trailer for Wolverine 21% UK and ES combined 65% 15% I have already received information from my friends about this film 14% I intend to discuss or share information about this film 6% UK ES 8% Have shared a movie on YouTube Have not shared a movie on YouTube Q1: Have you ever shared a link for an online movie trailer before? Q2: Would you discuss pass on or share information about X-Men Origins: Wolverine', specifically? Attention on YouTube is higher than on TV – and both have a strong impact on campaign metrics Intensity (attention) Users are 1.5x more attentive on YouTube than TV Time (seconds) * Biometrics data measured: Heart rate Physical movement Respiratory rate Skin conductance Source: Biometric data collected Sept 2008 in the UK n=48). TV respondents were watching In Plain Sight a US FBI drama. Web respondents were surfing YouTube Test set-up – same creatives on YouTube & TV TV program with advertising break & standard spots 20‘‘-30‘‘ TV-Program Advertising announcement Advertising announcement TV-Program YouTube Homepage Video Ad YouTube Homepage Video Ad Standard Autoroll Masthead Format Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany OTTO – YouTube integration For both formats sound playback requires activiation per click Standard Autoroll Masthead 14 Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany TV and the YouTube Masthead have a similar impact Unaided brand awareness after two advertising contacts (Average uplift for five advertisers) 150 140 Index: Uplift from advertising 130 135 120 132 128 Uplift from 2 x Masthead Uplift from TV + Autoroll 121 110 100 90 100 80 70 60 50 40 30 20 10 0 Control Cell: no advertising contact Uplift from 2 x TV Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany Uplift from 2 x Autoroll TV plus Autoroll has the strongest impact on brand image Uplift in Brand Image after two advertising contacts (Average uplift for five advertisers, if creative impacted image attributes across all media) 120 Index: Uplift from advertising 110 100 90 102 105 Uplift from 2 x TV Uplift from 2 x Autoroll 100 109 112 80 70 60 50 40 30 20 10 0 Control Cell: no advertising contact Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany Uplift from 2 x Masthead Uplift from TV + Autoroll Halo Effect YouTube for 10 image items Advertised Brands benefit from YouTube‘s positive brand image. Halo Effect can be shown for 6 out of 10 tested image dimensions. Halo Effect YouTube total Uplift from YouTube additional uplift from Halo Effect HALO-EFFECT (Average for five advertisers) Halo-Effect observed „normal advertising impact“ YouTube potentially increases creative impact Effect solely depends on the creative no HaloEffekt 17 likable "for me" authentic Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany credible dynamic fun innovative manifold conservative modern YouTube has a stronger impact on purchase intent than TV Purchase Intent after two advertising contacts (Average for test brands with effective creative) Index: Uplift from advertising 120 110 100 90 113 115 115 Uplift from 2 x Autoroll Uplift from 2 x Masthead Uplift from TV + Autoroll 103 100 80 70 60 50 40 30 20 10 0 Control Cell: no advertising contact Uplift from 2 x TV Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany Combining YouTube and TV boosts NPS more than TV or YouTube alone Recommendation behaviour (NPS) after two advertising contacts (Average for test brands with effective creative) 130 Index: Uplift from advertising 120 123 110 100 90 102 100 106 113 80 70 60 50 40 30 20 10 0 Control Cell: no advertising contact Uplift from 2 x TV Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany Uplift from 2 x Autoroll Uplift from 2 x Masthead Uplift from TV + Autoroll YouTube delivers efficient campaign performance 2 x TV 2 x YT 2 x YT Target Group: Adults 14-49 yrs. (Ad Break) Ø Uplift in %* + 21% + 18% + 31% CPM gross target group 29,58 € 4,60 € 10,77 € TV: Ø 30‘‘ Prime Time 08 RTL, Pro7, Sat1 (Autoroll) (Masthead) TV plus YT (Autoroll) + 27% 29,58 € + 4,60 € Example: Reach 2 x 1.000 contacts on 2 different days Media-Investment required in € 59,15 € 9,19 € 21,54 € 34,17 € Efficiency Index (Basis 2xTV) 100 563 404 226 Food for thought Net CPM? OTS/day 2,04 OTS/day 2,04 Cost assumptions from media agency, YouTube Source: Research International / nurago 2009 Panel Study with n = 1.500 participants, Germany *Average for 5 brands across metrics tested: Net CPM / OTS YouTube delivers incremental reach and drives sales YouTube adds incremental reach to TV • YouTube added 2.6% incremental reach for the spot. More than ¼ of all users exposed on YouTube had no campaign contact on TV 2.6% incremental reach YouTube TV-contact(s) TV-campaign reach: 55.8% YouTube reach: 9.6% YouTube contact(s) Source: GfK, Evaluation of cross-media campaign, Dec 2008; Web Efficiency Panel, Germany 27% of all YouTube contacts had no TV contact Sales Uplift - Frequency • Sales impact of YouTube increases with growing contact frequency. • Gap to TV slightly increases with number of campaign contacts. sales uplift (%) 40% 35% 28% 30% 30% 25% 25% 21% 15% 10% 10% 5% 24% 16% 20% 26% 21% 18% 14% 9% 0% 1 2 3 TV 4 YouTube Source: GfK, Evaluation of cross-media campaign, Dec 2008; Web Efficiency Panel, Germany 5 6 or more Number of contacts (Short-term) Return On Investment • YouTube is more efficient than TV: Short-term ROI is higher and well above industry benchmark for TV. Most efficient channel is Google AdWords. ROI (gross)* 2.0 1.91 1.8 1.6 1.4 1.2 1.0 0.8 0.6 TV industry 0.4 benchmark CPG: 0.26 0.2 0.42 0.31 0.0 TV YouTube * gross ROI = incremental sales in relation to gross media spend Source: GfK, Evaluation of cross-media campaign, Dec 2008; Web Efficiency Panel, Germany AdWords Sales Uplift - Media Interaction • YouTube and TV drive both drive sales at similar levels sales uplift (%) 30% 25% 20% 15% 10% 10% 9% 5% 0% YouTube Source: GfK, Evaluation of cross-media campaign, Dec 2008; Web Efficiency Panel, Germany TV YouTube works in the Netherlands! 27 Campaign ‘Jouw Heineken’ YouTube % Campaign Reach Search YouTube Online TV 0% 20% 40% 60% 80% 100% TV Online We conducted a Cross Media study including YouTube Campaign Online (Tagged) N=300 Post Measure 5 days delay TV (OTS calculation) Search Experiment 0 - Measure (Tagged) N=5000 0 - Measure Measure of Brand Metrics (and demographics and media consumption): Awareness of Brand and Advertising, Purchase behavior and intention, Image etc Search Experiment Experiment creating exposed versus unexposed to paid Search Post Measure Measure of Brand Metrics and Creatives: 0-measure questions + recognition and evaluation of creatives YouTube drives recognition and awareness 100 Recognition - YT ad 200 100 Recognition - YV Commercial 122 100 Top of mind awareness 112 Unexposed Top of mind ad awareness 100 110 Awareness Jouw Heineken 100 108 Purchase Intent 100 106 0 20 40 60 80 100 120 YouTube 140 160 180 200 Significant increase of recognition of both TV and Youtube in the Youtube contact group YouTube group = YouTube only + YT with low OTS TV YouTube positively impacts brand metrics Brand Image 100 Contemporary 115 100 Great 113 Unexposed YouTube 100 Positive Energy 107 100 Shared Interests 113 90 95 100 105 Structurally increased score on almost every brand statement YouTube group = YouTube only + YT with low OTS TV 110 115 YouTube has an incremental effect, even when TV exposure is high Top of Mind Advertising Awareness Brand Image Low YT exposure High YT Exposure Low TV Exposure 100 101 High TV Exposure 121 135 Low YT exposure High YT Exposure Low TV Exposure 100 108 High TV Exposure 105 117 Q&A