Apple leads tablet and smartphone web usage

Smartphones and tablets are now responsible for slightly more than 20% of web traffic in the US and Canada, according to new findings from online ad network Chitika. Specifically, smartphones account for 14.6% of web traffic and tablets take up 5.6%.

Looking further into the tablet category, the report finds that the iPad has a dominant share of web traffic among tablet devices (95%). The report also finds that Apples share of web traffic in the smartphone category is 72%.

Microsoft still has a sizeable lead when it comes to desktop computers, as Windows accounts for more than 85% of web traffic (the Mac is responsible for 13%).

Original Programming, The New Internet Video Land Grab

This week, Hulu announced a slate of 10 exclusive shows coming to its platform this summer—one of the most aggressive moves yet in a land grab that is taking place among the pioneers of Internet video. Netflix has now green-lighted five premium series, and earlier this month, Amazon unveiled Amazon Studios, its first foray into original video. At YouTube, Google is plowing $100 million into launching 100 channels, with the goal of creating more content than there are hours in the day to watch.

In the hypercompetitive community of TV creation, where fortunes are made and programs are killed without mercy, online is where the action is. “The phrase that I keep hearing a lot is that it’s the Wild West,” says J.D. Walsh, the showrunner behind the original Hulu series, Battleground. “And I think that it is the Wild West. What that connotes to me is that nobody really knows what the rules are, what’s going to be stable, or who is going to [emerge as] the leaders. But even within the Wild West, you did have some major cities—and that’s what you’re seeing with these platforms.”

Hulu, Netflix, Amazon, and YouTube are all taking a unique approach to original programming on the Web. Their differing bets—on such questions as quantity, polish, advertising versus subscriptions, nudity, and more—provide a hint of what the future of “television” will resemble.

Hulu, which is jointly owned by the legacy television networks, is coming to resemble a broad-interest network with catholic tastes. Of the 10 series announced this week, three are wholly original to Hulu, and they run the gamut: there’s Spoilers, a kind of movie club hosted by Kevin Smith (Clerks); Up to Speed, a travelogue by Richard Linklater (Dazed and Confused); and We Got Next, a “bro-mantic comedy” about a pickup basketball clique. The other seven titles, for which Hulu bought exclusive streaming rights, involve everything from teen pregnancy to the British clergy to a faux-gritty mockumentary set on an elementary-school playground.

Andy Forssell, the executive in charge of content—and a $500 million annual budget—says he has no idea how many titles Hulu will come to produce in the coming years. “We’re quality-gated,” he said in a recent interview. “There’s no quota that I want to go hit. We don’t have a set number of hours to fill, like a lot of traditional networks do—that’s actually an advantage I want to jealously guard.”

“A year ago, it was difficult to have people audition for our show because they just thought, ‘Oh, it’s just going to be on the Internet.’ Now we don’t have that problem anymore.”

Jason Kilar, the chief executive officer of U.S. online video content provider Hulu. (Kyodo / Landov)

One thing Hulu’s original titles will never depict, though, is nudity. That’s in part because a significant portion of the company’s revenue comes from advertising.

That provides an easy point of comparison with Netflix, which has sought to reposition itself as the HBO of the Internet, home to premium dramas and comedies that viewers are used to finding on pay-tier cable channels. That includes the promise of gore—horror auteur Eli Roth is developing a werewolf series titled Hemlock Grove—and, when appropriate, boobs. In April, at an event in Las Vegas that offered a first look at Netflix’s original programs, much was made of the shower scenes to come in Orange Is the New Black, a comedy set in a women’s prison.

The first Netflix series, Lilyhammer, premiered in the United States in February, and four more will come in 2013, including the $100 million drama House of Cards, with a pilot directed by David Fincher (The Social Network) and Kevin Spacey in the lead role. While Hulu plans to release episodes of its programs week by week, as the broadcast and cable networks do, Netflix will make whole seasons available to stream at once, a competitive advantage in courting the most artistically demanding writers and directors.

Amazon is far behind Hulu and Netflix’s leads, having only just unveiled its Amazon Studios division in early May. But its model is intriguingly disruptive, and of a piece with the company’s dotcom and retail roots. While Hulu and Netflix are hobnobbing with Morgan Spurlock and Jenji Kohan, Amazon is crowd-sourcing its production process, soliciting pilot scripts from the general public.

After a 45-day option period, Amazon will offer chosen artists $10,000; if the series makes it to the Amazon Instant Video service, creators get $55,000 and up to 5 percent of the proceeds from toy and T-shirt sales. And for now, Amazon is taking the opposite of Hulu’s kitchen-sink approach to genre, asking for pitches specifically in comedy and children’s programming.

Then there’s YouTube, with the deep pockets of Google and a deeper commitment to the messy, anything-goes world of user-generated Web video. Its 100 subsidized channels will feature sports talk, family fare, self-help, and virtually everything else users expect of the YouTube jungle. These episodes will be Web-sized—a couple of minutes each, instead of the familiar 22-minute blocks that will be found on Amazon—and creators will get a cut of Google’s advertising.

Why are these online video giants all rushing into original content? A number of factors play a role. With more homes gaining access to broadband Internet—and higher quality feeds—the audience for streaming is reaching a critical mass. Viewers have more choices about where to watch video, too—Friday Night Lights is available on Amazon Instant, Netflix, Hulu, Apple’s iTunes, and other services. As these libraries get more similar, the streaming companies have only two options for differentiating themselves: either pay through the nose for exclusive deals, or put that money toward great original programming.

The talent is ready. “A year ago, it was difficult to have people audition for our show because they just thought, ‘Oh, it’s just going to be on the Internet,’” says Battleground’s Walsh. “Now we don’t have that problem anymore.”

Online Video Viewership Continues Rapid Climb

According to data from April’s comScore’s Video Metrix report:
181 million U.S. internet users watched nearly 37 billion online videos.
The top five digital video properties on the web were Google/YouTube (157.7 million unique viewers); Yahoo Sites (53.6 million unique viewers); VEVO (49.5 million); Facebook.com (44.3 million); and Microsoft Sites (42.8 million).

Of the 37 billion video views, Google/YouTube was responsible for 17 billion, while Hulu and Yahoo accounted for 901 million and 742 million, respectively.

The average viewer watched 21.8 hours of online video content, with Google/YouTube (7.2 hours) and Hulu (3.8 hours) earning the highest average engagement among the top 10 properties.

U.S. internet users watched 9.5 billion video ads in April, making it another record-breaking month for video ad views.

Hulu led the way with 1.6 billion video ads delivered, followed by Google/YouTube (1.3 billion), BrightRoll Video Network (943 million), Adap.tv (881 million), and TubeMogul Video Ad Platform (831 million).

Total time spent watching video ads amounted to 3.9 billion minutes, with Hulu once again leading the way as it delivered 670 million minutes worth of video ads.

Overall, 84.5% of the U.S. internet audience viewed online video.

New Viacom Study Reveals the three C’s of Social TV

When Viacom  asked people about “social TV” in a new study, the most common responses involved the words “interactive,” “friends” and “Facebook “or “Twitter.” It was part of a research project to understand social TV through the eyes of the viewer. “One of the main goals of this research was to understand how to inspire social TV activity among our audiences,” said Colleen Fahey Rush, who headed up the study. It found the top three social TV activities can be boiled down to communicating, consuming content and checking comments:

Communicating: 56% prefer communicating through the social TV app/service, 53% through Facebook, 50% through individual or group texts and 38% through Skype or Apple FaceTime, the study found. For those that use check-in services, 71% check in to a show to let their friends know and 64% check in to let other fans of the show know. As far as devices, smartphones dominate the use of social TV apps at 82%, trailed by tablets at 18%. For services that are delivered via HTML websites and associated apps, 52% of usage occurs on smartphones or tablets, followed closely by desktop or laptops at 48%.

Content: The number one request for content is full-length episodes (88%), followed by sneak peeks of new episodes (75%), and behind-the-scenes extras (71%) and highlight clips (71%). The majority of TV socializers are interested in rewards with real value, like free merchandise or signed cast photos. When putting aside the material aspect, virtual rewards offer an emotional pay-off, described as being similar to the feeling when ‘liked’ on Facebook.

Comments: The number one source viewers want to hear from is a show’s cast and crew, followed by the people they know. Audiences are sensitive to the quality of comments from a show’s cast and crew – they look for authenticity and prefer the star(s) to be in character.

As you might expect, Viacom found that the activities were twice as likely to happen during live TV rather than time-shifted viewing. Social TV enthusiasts reported feeling “left out” of the conversation if they missed a live airing. Interestingly, the study found the leading source of discovery of social TV services is through search (38%), followed by social networks (26%) and ads run on shows (22%).

The Voice Season Finale Drives SocialTV Engagement

Lots of music celebrities were tweeting during The Voice the two-night Season Finale so were lots of other people…

While Justin Bieber drove a huge spike in social chatter, the announcement of The Voice‘s Season 2 winner drove the biggest reaction in social TV. Congrats to winner Jermaine Paul (@JermainePaul) and too The Voice for another great season.

Tablet Usage Occurs Primarily At Home

Tablet owners in America use their devices inside the home 74% of the time, according to a study from Viacom covering Q1 2012, per an eMarketer report.

96% of those who use a tablet at home said they use it in the living room, and 94% said they use it in the bedroom; this supports the idea that the tablet is being used for entertainment purposes, such as watching content or playing games.

Of note, 75% of respondents indicated they use the tablet inside the home office. As for outside the home, the report found that the airport/airplane (80%), coffee shop (72%), outdoor public place and appointment (64% each), work (59%), and public transit (58%) were the most common places where tablet owners used their device. Interestingly, the store was only cited by 36% of respondents.

How Social TV is Changing Broadcast TV

Back before remote controls, watching TV was just that – watching the television. These days, it’s so much more.

Now we’re Tweeting and Facebooking up a storm all while keeping one eye on our favourite TV shows and while we’re online, we’re talking about what we’re watching.

Reality TV programs receive the highest mentions, understandably, since they inspire debate among viewers.
Twitter seems to have the most TV junkies of all the Social Media platforms.

Whether we’re Tweeting while watching, having our say post-viewing, discussing a show with friends, or Tweeting the show or its stars – we love Twitter TV talk.

Here are some stats on Social TV viewing…
55% are female
45% are male
Winning, voting and judging are the top subjects, which helps explain why reality TV programs are such a hot topic of Tweets and Updates.
72% Tweet pre-viewing
69% Tweet during the show
47% Tweet after viewing
77% Tweet so friends and followers know what they’re watching
68% Tweet to keep their favourite shows on air

These days, it’s to be expected that at least one or two TV programs will feature in Twitter’s trending topics at any given time.

Not all TV Should be Social TV

As one could imagine, I end up in a lot of conversations about second screen TV apps, companion apps, social TV, etc.  Virtually every discussion takes some long varied road to get to a point where all involved agree that the only rule in building next generation TV platforms and products is this: not all TV shows are alike, and experiences must be built with this rule in mind.

Let’s start with #SocialTV – broadly defined in current terms as “people tweeting, checking in, and liking TV shows on social media platforms.”  While I’m pretty jaded in my belief that this is resoundingly uninteresting as a topic, it’s important to think of it on a per-genre basis, and in fact, a per show basis.  One could state that “dramas” for example won’t garner much social TV activity – who really cares about checking in to shows like CSI or House?  Then along comes Game of Thrones, rule broken.  Then you could use Game of Thrones data to claim people don’t tweet while watching live TV.  And along comes sports and reality shows.

When it comes to planning and thinking about how users may/will behave regarding social TV and shows, I recommend thinking about it from two perspectives: (1) live interaction and (2) cultural impact.  The personal drivers for a lot of these activities have to do with the social perspective.  People are interested in “connecting” with others, which drives the interactions (tweeting about your team, someone getting voted off the island, etc).  People are also interested in being part of the cultural zeitgeist – Game of Thrones is “in” and “cool” to tweet about, whereas CSI and House are not.

Next up are companion apps – smartphone and/or iPad apps designed for use during a TV show.  As above, the potential value creation here is entirely about the content.  Do users really want to pull out their phones and read trivia while watching an intense or immersive show like Game of Thrones or The Good Wife?  Doubtful.  Am I going to look away from a visually-rich experience such as Planet Earth? Or how about Family Guy, where half the show is visual gags?  Seems unlikely.  But during any reality show, game show, talk show, or sports? I’d guess there’s a huge opportunity here.

Same moral as above, the right companion apps keep the content in mind.  First, we really don’t need (or want) a dedicated companion experience for every single show that airs – it’s just plain unnecessary.  But regardless of that, the experiences should think about the audience and how they want to interact.  Sports is all about real-time and stats.  Cooking shows, on the other hand, don’t need a real-time experience, but yet offering recipes, how-to, pictures, etc that can be bookmarked, archived, and viewed in the future is quite handy.  Complicated plot-driven shows can offer complementary experiences that supply background or other pertinent information to help audiences keep up with whatever’s going on.

Enhanced content offerings – featurettes, behind-the-scenes, and other options that plunge the user in a further immersive landscape blah blah blah. Now, speaking as the guy who watched all 3 Lord of the Rings movies, extended cut, with director’s commentary on, there’s no question a marketplace exists for extra content.  Blooper reels.  Making-of’s.  Interviews with Cast & Crew.  The key focus again is identifying the right content for the right show and deploying it in the right place.

Do I really need a dedicated app for my iPad just to get extra content for each show I like?  Do I need to subscribe to something?  I think, fundamentally, content creators and technologists need to really spend time crafting the right offering for each individual show.  For example, having the “webisodes” of The Office available openly via Facebook each week is a great solution to enhance that offering.  But if I needed an Office app, with a new Office username and password, would it be worth the investment beyond the “Like”?  Doubtful.

Overall, the time has come for TV technologists, creators, producers, etc to work together to avoid one-size-fits-all approaches to TV experiences.  Every show, every network, every device, and every platform should be regarded as a unique opportunity to engage an audience and tell a story.  Except, of course, for reality shows about celebutantes, which should just go away. Please folks, just do the right thing here. We can do it!

by Jeremy Toeman

Digital Video Advertising Hits New Record

According to comScore’s latest online video numbers 181 million people watched over 36 billion online videos in March 2012. The leaderboard on this front was comprised of the usual suspects: Google/YouTube, Yahoo!, VEVO, Facebook and Viacom Digital ranked at the top in terms of unique viewers, while Google/YouTube and Hulu remained the kings of online video in terms of average minutes per viewer.

On the video ad front, Americans watched more than 8.37 billion online video ads, a new record, with Hulu delivering more than 1.75 billion video ad views on its own, which is also a new record. Google slotted in at second with nearly 1.27 billion video ads during March, followed by BrightRoll Video Network (953 million), Adap.tv (892 million) and Specific Media (775 million). Other interesting findings from the report include:

83.5% of the U.S. internet audience viewed online video.

The duration of the average online video was 6.4 minutes, while the average online video ad was 0.4 minutes.

Video ads represented 18.5% of all video ads viewed, and 1.5% of all minutes spent viewing online video content.

Four Reasons to Pay Attention to Social TV

Within the broadcast and social-media-analytics worlds, as well as the broadcast-obsessed agency and marketer universe, the term “social TV” is uttered and heard endlessly these days. But not everyone understands the meaning of the term.

The short answer is Millions of people are now partaking in “dual-screen” experiences — watching TV while using a smartphone (or tablet) to share (primarily on Twitter and Facebook) their thoughts about what they’re viewing and to “check in” to shows (on services like GetGlue). The result: a massive and rapidly expanding real-time focus group (and promotional force).

Here are four good reasons, highlighted by Ad Ag
e, of why social TV actually matters:

Social TV can increase ratings.
At the 2012 Social TV Summit, Deirdre Bannon, VP-media analytics at Nielsen, shared the result of research the company has been conducting during the past year. (It began releasing research on the social-TV-to-ratings connection last October.) The main takeaway: For key demos, social buzz surrounding shows can increase ratings.

For instance, Nielsen says a 9% to 14% increase in buzz volume (depending on where a particular show is in its season) correlates to a 1% increase in ratings in the 18-to-34 demo. That’s obviously not enough to make or break a show, but it’s enough to matter. It’s also worth noting that ratings seem to be most susceptible to social influence when it comes to season premieres and finales — i.e., the pivot points that are heavily marketed in traditional, nonsocial media (especially network promos).

Social TV can make TV better.
Chris Stephenson is both a hard-charging new-media executive as president of Viggle — the “loyalty program for TV” that launched in January — and a pop-culture addict who takes naked delight in making what’s fun TV even … funner. “People talk a lot about ‘social TV,'” Stephenson told me over coffee in San Francisco, “but we don’t think that way at Viggle. We think more about ‘better TV.’ We want to add a layer of enjoyment to television-watching which enhances the experience and rewards people for their loyalty and engagement. While many of the social-TV apps rely on the basic principle of ‘sharing my check-ins,’ we think about deep engagement, polls, trivia, mood-o-meters, etc.”

Social TV can get consumers to engage with shows (and brands) far beyond the broadcast window.
“We provide custom metrics depending on what our sponsors are looking for,” said USA Network senior VP-Digital Jesse Redniss, speaking of the various social-TV programs he and his team have devised over the past few years. “Nobody is really saying, ‘We want to get clicks.’ Nobody cares about the click anymore; the click is pretty much dead. Marketers really want engagement over time: ‘People viewed our vehicle for X amount of time.’ Or, ‘We want people to experience all the cool attributes of what our brand represents.'”

In the case of its hit show “Burn Notice,” for instance, USA Network produced two “seasons” of the “Burn Notice: A New Day” digital graphic novel (aka tablet comic book), sponsored by Hyundai, whose vehicles are featured in beautifully drawn, interactive storylines that have baked-in Twitter and Facebook connections. Fans of “Burn Notice” might watch every episode — hardcore fans might even watch reruns, too, to catch nuances they missed on first viewing. But that’s about it. Through TV alone, USA and its sponsors have a hold on viewer attention for a finite set of hour-long chunks for its dramas. But done right, social-TV initiatives like the “Burn Notice” comic book can strengthen engagement by deepening the narrative pre- and post-broadcast.

Social TV can provide tons of new ‘hooks’ for marketers.
Earlier this month in his company’s headquarters Watchwith CEO and co-founder Zane Velthe revealed the system his company has developed to provide what he calls a “time-based metadata” platform to power social-TV apps.

“We’re creating a world where every frame of TV is rich in possibilities,” he said, sounding every bit the on-pitch evangelist. But the proof is in the pop-ups — the visual manifestation in Watchwith’s back end (not visible to viewers) that creates second-by-second data bubbles that display what the database “knows” about every given scene. In an episode of social-TV (and ratings) hit “The Big Bang Theory,” for instance, a character walks into a room and the Watchwith database serves up information (which in turn feeds into social-TV apps) about exactly which model of Jansport backpack he’s carrying.

Consider that Watchwith — which just rebranded from its nerdy previous incarnation, Related Content Database — has been working with major broadcast and cable networks, social-TV startups and e-commerce players including eBay.

Now consider what can happen when such product-smart metadata gets synced with the crowdsourced data that more and more TV viewers are producing themselves during every scene of all their favorite shows. You can begin to understand where the whole social-TV phenomenon, and media engagement in general, is going.

Read More at Ad Age