“Video in China is the world’s largest market boasting of over 500million viewers. The exponential growth of users and advertising spending has created many new challenges in the realm of video advertising. Dive Video will unravel all of the
mysteries in the industry, clarifying the best way to use video for advertisers, online video websites and agencies. Dive Video provides the roadmap for both those who are producing and promoting content as well as those advertising across different devices,” said Bhasker Jaiswal, Managing Partner of Business Intelligence, OMD China. “DIVE VIDEO is path-breaking research which covers consumers,
advertisings, sites as well as devices,” he added.
Netizens now spend 80 minutes per day watching online video, making it a crucial form of media that marketers have to engage with to reach their audience. Discussion about OTV however has been focused on increasing advertising budget on video, but few have touched upon the challenges of how to do online video right. This study reveals new insights about the OTV consumer journey and their reactions to video advertising. By surveying consumer OTV watching behavior across tiers 1-4, and tracking their exposure to advertising, OMD was able to map out the path to achieve higher ROI and efficiency on OTV advertising.
WHAT WE FOUND OUT
1. People discover OTV content outside of OTV platforms. Internet search (41%) and WOM (37%) are the top sources for people to discover new content.
2. OTV watching is habitual: 69% of OTV viewers already know what they want to watch and 41% consistently use their favorite video platform.
3. Content is not where OTV players differentiate themselves. Among top 5 reasons to choose the OTV platform, only one relates to content on the platform, with the rest concerning user experience. With big OTV players competing for the hottest content in the market, niche players will need to rely more heavily on self-produced content to attract a loyal audience.
4. Device truly matters for OTV advertising. Mobile ads outperform PC ads in driving purchase intent (13% vs 8%), whereas PC ads still reign for driving awareness. Audiences also react differently to ads on different devices. Female react better to mobile ads while older audiences are more heavily influenced by
PC ads.
5. Sometimes less is more: frequency capping and short ads achieve higher recall. Brand recall is best at a frequency below 5+, and product recall at a frequency of 5-10+. Short video ads (15’s) outperform longer versions (30’s) across all brand metrics including ad recall, product recall, brand recall, and purchase intention.
Arlene Ang, CEO OMD China commented, “Dive Video will help advertisers tackle the challenges in video advertising by bringing clarity on what drives OTV viewership and how advertisers should invest in OTV to achieve media and business objectives.” She continued, “OMD’s focus to deliver business results to our clients is what drives us to continually innovate to offer smart media investment thought leadership. We see ourselves as a business partner that provides smart data solutions that drive business results.”
About OMD
OMD Worldwide (www.omd.com) is a leading global media communications agency, with more than 8,000 employees across 100 countries serving the world’s high-profile brands. OMD provides a range of services globally including communications strategy, media planning and buying, digital execution, content creation, entertainment marketing, sponsorship and brand analytics. OMD is recognized for its global footprint, strategic integration and creative innovation. It has been acknowledged as Most Creative Media Agency by The Gunn Report for an unprecedented seven consecutive times; Adweek Global Media Agency of the Year for 2008, 2009 and 2011; and 2002, 2005, 2009 and 2011 Media Agency of the Year by Advertising Age.
OMD Worldwide is a unit of Omnicom Media Group, the media services division of Omnicom Group Inc. (NYSE: OMC).
OMD China (www.omd.com/china), a leading marketing communications specialist delivering business-oriented media investment solutions has been driving momentum within the industry over the past three years in China. Operating in Shanghai, Beijing and Guangzhou, OMD has more than 800 trained media specialists who embrace a client-centric vision and solution-driven approach. The OMD team is committed to building sustainable competitive advantage for clients in this complex and rapidly evolving market. OMD consistently demonstrates best-in-class financial practices, is 100% audit proven and has a 100% client retention rate. OMD continues to raise the bar in terms of industry thought leadership and achievements and is the recent recipient of 2013 Cannes Lions Awards, 2013 ROI China Awards, 2013 Spikes Asia Awards and 2013 China Advertising Great Wall Awards.
About Omnicom Media Group
Omnicom Media Group is the media services division of Omnicom Group, Inc. (NYSE: OMC). Omnicom is a leading global advertising, marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.
Omnicom Media Group is made up of several media specialist companies. Among them is OMD Worldwide (http://www.omd.com), the largest and most innovative media communications specialists in the world, and PHD Network (www.phdnetwork.com), a leading media services company widely recognized for its pioneering and innovative work for clients.
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