Market Research Videos

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Nick Black from Concerto Marketing, presents insights into family eating behaviour and meal motivations.

Phil Leigh If you would like to learn how my media usage changed during a recent period of enforced idleness, this audio program is for you. Owing to medical leave during the past two-weeks I have been relatively inactive at the office. This led to an increase, as well as a change in the pattern of, media consumption. Today’s podcast explains how. The equipment and services available in my home include CATV and broadband Internet access along with a flat panel TV that is connected to both a TiVo and a laptop computer. The laptop functions as an Internet Gateway for the TV. Thus the flat panel unit can function as either a conventional TV or a giant monitor for the Internet-connected laptop. The selection-of-function is done with a conventional TV remote unit merely by pushing one button. When used as a monitor for the laptop the Internet Explorer browser is controlled from the living room sofa with a LogiTech remote mouse and keyboard. On a typical day I would first check the TiVo “Now Showing” selections that had been recorded. About half the time I was not interested in watching the recorded shows most of which were selected by the TiVo service as opposed to ones that I programmed. If there was nothing in the “Now Showing” inventory, I would start channel surfing live TV in hopes of finding something worthwhile. Generally I could not locate anything worth a grown man’s time. However, when I did, I would let the show buffer while I went to my home office to check email and read articles. After TiVo buffered about 30 minutes of the desired show I would return to the living room to watch it. The buffering normally enabled me to watch the entire show without having to look at any commercials because I would fast forward through them. When there was nothing on TiVo or live TV that I wanted to see, I would go to my home office and search imbd.com for interesting movie titles. For example, I browsed the top 250 movies as rated by imbd.com website visitors and found 8 – 10 that I wanted to see. To find them I would first check to see if the movies were available for rental from Amazon-Video-on-Demand through my TiVo. Only a couple of them were available. One I bought and the other I rented. Both were downloaded directly to my TiVo. The first download did not work and I had to call both Amazon and TiVo to get it fixed. The second one worked okay. Second, if the movie was not available at Amazon-Video-on-Demand, I would search for it on free websites such as YouTube. Surprisingly, I found a couple of the movies there. They had to be watched in ten-minute sequential segments, but there were no commercials and it was free. As noted, with the laptop as Internet Gateway I was able to watch them on the flat panel TV screen in my living room. Third, if nothing was available on TiVo, live TV, Amazon-Video-on-Demand, or places like YouTube, I would visit Hulu.com. Generally, on Hulu I chose to watch old movies.  Selecting titles was aided by the helpful reviews of Hulu.com subscribers. Once again, I watched them on the flat panel TV by using the laptop computer as an Internet Gateway. Although they were free, I had to endure the commercials. Fourth, sometimes in the process of searching for movies to watch from the home office PC, I would discover long-tail content that was only available at websites like YouTube. For example, I read a fair number of novels each year and was able to find video interviews with some of my favorite authors. Generally, I watched them on my desktop PC, but sometimes I would watch them on the flat panel TV in the living room. The experience left me with three major inferences. One: We channel surf because we don’t like what is on TV. It is not a cliché to say of cable television, “Hundreds of channels but nothing to watch”. Channel surfing is a habituated practice that points to a future characterized by a video-centric Internet where all content is searchable and immediately available. Two: After only limited exposure to services such as Hulu.com and Apple TV and Amazon-Video-on-Demand rentals, consumers are going to abandon video rental stores like Blockbuster. Their frequency-of-visits to Blockbuster will tail-off sharply. Three: The Long-Tail is going to be far more important than the established media companies would like to think. If consumers can’t find your stuff conveniently at YouTube, Hulu, iTunes, Netflix streams, or similar services, they’re going to discover other shows to like. If you don’t believe me, experience it yourself. Searching videos on YouTube is like channel surfing on steroids. Guys who channel surf the TV are already telling you their not finding what they want. Once they get habituated to surfing for videos on the Web via the TV set, the time they spend on CATV networks will steadily decline.

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Phil Leigh If you would like to learn the latest research about the audience for online video, this audio program is for you. Last week the Pew Internet and American Life Project released new research concluding that online video is growing at a rapid rate and that a leading edge of users are migrating Internet viewing to the TV screens.  The data is actually about four months olds, so we presume that market penetration has advanced even further.  Among the findings are the following: First, the popularity of video streaming websites such as YouTube and Hulu outranks many other headline snatching Internet pastimes such as social networking and Twitter. Whereas 62% of adults watched online video, only 46% participated in social networks and an even smaller 11% used Twitter. Second, audience growth for online video streams has been swift. Over the 28 months from December ’06 to April ’09 the number of adults watching Internet video streams nearly doubled from 33% to 62%. Furthermore, an increasing proportion became habituated to watching every day. About one-third of those watching online videos view them daily as compared to only one-fourth in December ‘06. Third, the practice of watching TV shows and movies online is growing at about a 100% annual rate. In April 35% of Internet users had viewed a TV show or movie online as compared to only 16% just over a year earlier in February ’07. Fourth, a significant number of us are watching online videos on our televisions. Among those who watch TV shows and movies online, nearly one-fourth connected their computer to a television screen so they could view Internet video on their TVs. Pew estimates that 8% of all Internet users had made such connections as of April ’09 which equates to about 7.5 million users. Moreover, about 30% of males watching online TV and movies were doing so via the television as compared to only about 15% of females. Since men are often leading indicators of Internet technology adoption the 100% gender differential implies continued expansion of the practice. Fifth, about one-third of those who have cut back on cable TV have “re-routed” their online video to the television.

Phil Leigh If you would like to learn how newspapers and TV affiliates can generate incremental ad revenue by selling behaviorally-targeted Internet ads to local businesses, this audio is for you. Behavioral-targeting is one of the keys to success in online advertising.  For example, consider how online merchants such as iTunes and Amazon.com are among the most successful websites in terms of translating visits into sales. There are two reasons why their conversion performance is exceptionally good. First, visitors are obviously pre-disposed to buying since they are visiting an online merchant. But the second reason is more interesting and significant in terms of implications for online advertising. Consider how both Amazon.com and iTunes do a good job of suggesting alternative titles for visitors who arrived looking for related books or recordings. It is not uncommon for visitors to purchase the suggested alternate titles. The banners and texts that suggest such titles are examples of behavioral-targeted ads. Amazon and iTunes target such ads based upon the consumers’ prior purchasing experience at each site. Delivering behaviorally-targeted ads when the ad serving company does not have access to such proprietary information requires a different approach. Most identify visitors by assigning a unique id “cookie” to each visitor at a client site. Thereafter the cookie tracks visitors throughout their ensuing web journey. The platform then makes a rules-based decision about what content to serve based upon the multiple websites that a cookie-enabled browser visits. Behavioral data can be combined with demographic and geographic information in order to produce a greater degree of targeting precision. Last year Yahoo developed such a platform and is offering it to outsiders, including newspapers, and more recently AT&T Yellow Pages, among others. Essentially, newspapers are discovering that their existing sales-force can be used to sell both newspaper and Internet ads to local businesses. Typically one of their strengths is a trusted prior relationship with local advertisers. Yahoo has partnered with a consortium of newspapers to which it provides its targeted advertising platform. There are two advantages that the Yahoo consortium provides to participating newspapers. First, it enables them to sell Internet ads for local businesses that will be distributed on Yahoo web properties as well as the newspapers’ websites. Second, and more importantly, it enables newspapers to sell behaviorally-targeted ads on their own web pages. For example, assume the Yahoo cookie learns that I have been searching for information of BMW automobiles at a variety of websites. Should I next choose to visit my home town newspaper website merely to check on unrelated stories, the Yahoo platform is likely to place ads for local BMW dealers within the online pages of the newspaper that I see. You will see different ads on those same pages based upon your own prior browsing patterns. While Yahoo has not yet made the platform available to local TV affiliates it may do so in the future. Alternately, a competing platform could offer similar services to TV affiliates thereby enabling them to also sell higher priced behaviorally-targeted Internet ads as well.

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