Milennials & Video On Demand: Can We Reach Them? Presented by Group A Alexandria Brown, Neethu Ramchandar, Zoe Levin, Maria Zavala, Didi Shum As the first year initiates of Initiativeâ€™s Future Board, weâ€™ve compiled a comprehensive and in depth study of how milennials use video on demand, why they use it, and if its a viable resource for marketers.
Discovery What Exactly is VOD in 2012? Our goal is to discover what video on demand is, what it will be, and how it can be best utilized. Through extensive secondary research, our team has sketched the complex consumer media landscape- a world heavily reliant on new technologies and emerging trends. We hope our findings provide concrete information to guide successful future video strategies for Initiative. The idea of streaming content whenever, wherever you want, is life-changing. It still hasn’t hit many Americans, because most still employ traditional broadcasting methods- 90.4% of households pay for a television subscription and roughly 75.3% pay for broadband (Based on Nielsen study, 2012). Nonetheless 42% of Americans have streamed a movie online, up from 28% in 2009 (Deloitte, 2012) Since there are so many different formats consumers can employ VOD, there are no “hard and fast” statistics outlining demographics. What we can say, is that it’s a huge growth segment. According to a recent study by Cisco, “the sum of all forms of video (TV, video on demand, Internet, and P2P) will continue to exceed 91 percent of global consumer traffic by 2014. Internet video alone will account for 57 percent of all consumer Internet traffic in 2014.” (Cisco, 2010) Redefining How Video On Demand Works
Shifting control from the provider to the consumer, Video on Demand (VOD) allows the viewer to stream, pause and stop chosen media content at their leisure (keyword- chosen). Though traditional channels, such as cable providers, offer VOD services (ie. the all too familiar pay-per-view), the digital age has completely reinvented previous generations understandings.
Emerging technologies now allow any computer, tablet, and many mobile devices to transform into more than a viewing space, but also a space to create media to be uploaded to User Generated Content (UGC) driven sites like YouTube and Vimeo. Changing the game, players like Netflix and Hulu offer more traditional content, such as pre-recorded programming previously available through cable networks or DVDs, while other services like Skype and Google Plus have built social capabilities into the VOD arena. In a world where instant gratification is crucial, if we can receive what we want, where we want, all while on the go, then this makes VOD even better! There is no doubt that Video On Demand is increasing in popularity through the various digital platforms, but it is also revolutionizing the market. Overall, the VOD market has much opportunity for audience satisfaction, market growth, and reach. Whether it is reaching millenials through their mobile devices, or reaching their parents through a television set, the Video On Demand market has revolutionized our expectations of how we recieve our entertainment, which is what we want, how we want, when we want. Throughout all platforms we see the shift from waiting for your favorite television show to air, to instant gratification and streaming it when YOU want. It’s an exciting time for marketers to take advantage of this market, and innovate the next steps in consumer entertainment.
Straight to the Source: Milennial Thoughts It’s Sunday night and I’m rushing home after a day of errands. As I zig-zag through traffic I replay last week’s episode in my head adding commentary as I please. Arriving home, I shed my coat and pour a glass of wine nestling into my couch – The Amazing Race is on. Watching a video can range from an intensely personal experience to a social or background medium. In order to gain a wider perspective, our group chose to begin on these video diaries with a survey. Question ranged from whether or not an individual owns a television to what makes for a good digital video experience. We collected demographics and surveyed audience viewing habits; even asking individuals to peer into their Internet browsing history. As a result we were able to find trends and expectations of video experiences for both online and TV. In the following pages, experience what milennials had to say about VOD:
Common Themes It’s about Relaxation: Let’s face it—we all love to get home, lay on the couch, and de-stress about our day with a little television. Many of our millennial friends sure feel that way. When they mentioned how they watch television, many of them said it is mostly to take a load off their busy schedules, and also to serve as background noise. It’s a Social Thing: It’s about bonding with people who enjoy watching the same things you do. Many mentioned how watching television with their friends or family serves as bonding time. Weather you are watching the last bit of the football game, or cuddling with your mom to watch soap operas, our participants felt that video was a way of interacting with the people they care about while having fun. A good 41% said that they prefer or usually watch video with others. I want it, and I want it NOW: Contrary to popular belief, the answer is that no, not everyone owns a television set. At least not the millennials we surveyed. 27% do NOT own a television set, meaning they need to get their video from somewhere---computer. With new technologies, millennials also develop an idea of picking, choosing, and customizing to get whatever whenever. With the power of different Video on Demand methods, this is probably why video is still sticking around. With more control come more expectations, being the reason why many of the participants mentioned the negativity of online video advertising, and that being an aggravating issue. How do milennials know about what video to watch, anyway? Out of 38 participants, 35 agreed that Word of Mouth influences their viewing choices. Social Media (Facbook, Twitter) also plays a major role, as 15 out of the 38 said that affects what they watch and how. That is significantly important, considering that the Netflix sight only impacts 11 out of 38 participants, and Youtube only 10. The way the millennial consumer watches video and the reasons behind it are revolutionizing alongside the world around us.
What Our Audience Had to Say: Question: How would you describe your television viewing habits? “Internet killed TV. I really feel like TV is becoming obsolete. It’s a much more passive way of viewing while the Internet is interactive. I only watch TV when my Dad is watching football. Mostly in passing.” “When I have time, I usually go to abcfamily.com to catch up on episodes I’ve missed/ watch previews for next weeks episodes. My laptop caters well to my busy lifestyle, I can rarely watch the episode on the air date.” Question: Do you have different expectations for videos viewed on a television vs. the Internet? “I have lower expectations for video quality when I’m watching on the internet.” “When I watch TV I expect more ads. I also expect to be vegged out in zombie-like fashion. When I use the internet I choose to be engaged with what I’m watching. I can watch anything else at the click of a button. I don’t have to wait for a certain time slot. I don’t have to set the DVR to record anything. I just point and click. That feels nice to me. Internet > TV” “The internet is a more creative medium, so I expect a nicer, wider variety of content” Question: How would you describe your online media viewing habits? “I do a lot of YouTube for how to videos, but not much else. If one of my friends shares a video over Facebook, I’m more likely to watch it. Sometimes, if I want to unwind, I’ll just watch related video after related video on YouTube.” “I am always on Facebook or Twitter that is how I encounter most of the short form videos that I watch. For the long form videos, I first watched the show on TV then migrated to the Internet to watch. For those I usually watch closer to the weekend, and spend a few hours in bed catching up.”
As our research continued, we found that advertisements played an integral role in VOD for Milennials. So we took it a step further and created a second survey and a Day in the Life to see how millenials interacted with advertisements within VOD....
A Day in the Life We took it a step further and broke down how a male milennial uses VOD formats throughout his day.
So What Does This Mean for YOU, the Marketer? It’s clear to see Video On Demand is evolving, it’s multiplatform, and it’s definitely embraced by the milennial demographic. Now the question is have marketers found a way into the audiences heart? Taking all of our research into account we’ve pulled several key insights and recommendations that marketers should be aware of and take heed if it applies to their campaign. -Television and Video on Demand coexist for now: spread your eggs in many baskets, only focusing on VOD could prove to be difficult if not done well. 90% of people still purchase television program providers. -Quick and Painless Advertisments: If it’s a long advertisement, it better be great or just at the beginning of content. -Interactivity is Key: Whether coupons, links, or choosing an alternate ending getting viewers involved creates an experience.
On the following pages, see a final insight that may just be the most important factor when aiming for success with VOD.
-Authentic Content Trumps Product Pushing: Tell a story, any story. One example of good VOD content is Kobe Bryantâ€™s sneaker spots that featured celebrities such as Kanye West and Serena Williams. It was a multi episode story about the sneaker that proved to be hilarious although it was not true.
An infographic on the following page showcases more brands that have been getting it right with VOD.
Below is a link to other good resources to be successful at Video On Demand marketing. Resources for VOD Marketers: http://www.youtube.com/playlist?list=PLCA671FBD4BE809D8
Wrapping Up Over this 2 month period, our group has studied something were all too familiar with especially since we are the demographic. However, we stepped outside of ourselves to find other persptives that may have been the same as ours or surprisingly different. Either way we believe ourresults and insights will begin to give VOD a greater meaning for you, as the marketer. On behalf of Team A, weâ€™d like to thank you for giving us this opportunity. For more detailed information please refer to Parts I & Parts II regarding sruveys, and more specific responses. Thank You!
Published on Oct 25, 2012