1. 1 MDAS 3 Screens Study Digital Media – consumer habits and trends 29 January 2008

2. 2 A consumer insight & brand consultancy that specialises in media brands A background in advertising account planning Based in Central London, but with global coverage A permanent team of 20 What is Sparkler? An extended team of experts from video production to econometrics

3. 3 Who weve been working with recently

4. 4 Objective for the 3 Screens Study To understand the differing roles and value of video content across all 3 screens – and the opportunities for advertising within this

5. 5 Methodology: qualitative research in five markets 6 x 1.5hr research groups in each market (extensive media diary pre-tasks) The bulk of the project involved research with consumers in markets selected specifically for being relatively progressive in terms of online viewing, but with very different media marketplaces overall

6. 6 Two segments in each market PROGRESSIVE MAINSTREAMADVANCED Ownership and usage of PVR, Internet, multimedia-enabled mobile devices View AV content online more heavily View AV content on mobile devices, and share online/mobile AV content Ownership and usage of PVR, Internet, multimedia-enabled mobile devices View AV content online via a PC (NB: In Spain and Brazil respondents were not screened for PVR ownership) In researching mainstream behaviours we sought a realistic gauge for future global video consumption

7. 7 Our Swedish sample M40-55 Children 13-18 in home F18-24 No children in home Progressive Mainstream M F 30-40 Children 5-11 in home Advanced M F 25-34 No children in home No children in home GenderAge Children in home Screen usage Project management, recruitment & moderation by GfK Sverige Fieldwork took place in Stockholm 26- 28 Nov 2007 All groups attended by Nick Davis

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9. 9 Presentation headlines 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

10. 10 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

11. 11 An initial insight… Different households featured different video behaviours Interpersonal household dynamics were played out in these 3 screen behaviours

12. 12 Viewing habits differed according to household needs Teen family households Partner households Viewing most pulled apart Viewing most pulled together Young family households NEED Togetherness & Proximity NEED Solitude & Space

13. 13 This is reflected in where video is consumed in households Teen family households Partner households Teens seek solitude/ connectedness via use of laptop in bedrooms Mums use PC in study as way to get some quality time alone Young family households Partners watch new US dramas together on laptop in the bedroom

14. 14 Different screens perform different roles at different times Mums behaviour here the most mainstream example of progressive mainstream behaviour NEED Togetherness & Proximity NEED Solitude & Space PC Teens seek connectedness, web 2.0 immersion PC Mums seek my moment, use as surrogate screen for TV programmes TV Mums seek family bonding & shared experiences TV Teens seek time alone, away from family members

15. 15 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

16. 16 We sought to understand where primacy lay Q. When it comes to video, is it content or screen that is the most important consideration for consumers? A. Peoples video needs are not fixed and fluctuate depending on the viewing context at any given time PRIMACY IS NOT A ZERO-SUM EQUATION

17. 17 Context is a critical part of the video viewing experience Quality context is equally as important as quality content to a given video viewing occasion, but harder to define and control Content (where quality is easily-defined) Context (where quality is not so easily defined) THE VIDEO VIEWING EXPERIENCE

18. 18 Cultural context Out-of-screen context At any time there may be up to 3 viewing contexts at play In-screen context It is a combination of these contexts that will inform whether it is screen or content that assumes primacy in a given scenario

19. 19 Content connects the screens but context divides them CONTEXT CONTENT CONTEXT TV DesktopLaptop iPod/ PSP Mobile phone The content – good programmes, a decent film, interesting news clips – thats what is interesting. Where you watch it is more and more uninteresting – its becoming irrelevant (Male, Sweden)

20. 20 Some content is more naturally cross-platform CONTEXT CONTENT TVDesktop Mobile phone Laptop iPod/ PSP CONTENT NEWS DRAMA SPORT

21. 21 In future, context may become relatively less definitive CONTENT Laptop CONTENT NEWS DRAMA SPORT CONTEXT This will perhaps be driven by new viewing behaviours and narrative forms

22. 22 Screen size helps define the context Private One viewer Social Multiple viewers Personal Few viewers TV PC Mobile Device

23. 23 As such, TV has a Sofa Effect… TV has evolved to become a space of its own TV is also a low commitment zone, easy to enter and experience TV IS THE BENCHMARK FOR VIDEO VIEWING EXPERIENCES SOFA EFFECT Familiarity Comfort, relaxation Companionship Hub of the home Cinematic Professional content TV is like a room that you enter (Male, Sweden)

24. 24 The laptop brings with it Context Anarchy ALONE WITH OTHERS FIXED LOCATION ON THE MOVE

25. 25 …because of this, laptops can generate a Sofa Effect too CONTEXT ANARCHY SOFA EFFECT

26. 26 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

27. 27 Video viewing on PC is a proactive and committed act (TV IS ON) SELECT VIDEO CONTENT Viewing of (long-form) video on PC can encompass a number of steps that suggest a commitment to view and imply a highly focused, and highly valued viewing occasion and experience (PC IS OFF) TURN PC ON, LOAD SOFTWARE (BROWSE CHANNELS) SEARCH FOR VIDEO CONTENT SELECT VIDEO CONTENT (NO BROWSE OPTION) PC TV When I watch something on the computer it feels like an active choice (Male, Sweden)

28. 28 However, the value of TV video content is generally higher TV PC Mobile devices SIZE OF SCREEN PERCEIVED VALUE OF CONTENT WATCHED Typically… First time viewing Priority quality content Typically... Occasional viewing Mid priority content Typically… Repeat viewing Low priority content The perceived value of video content increases with screen size and screen quality – people seek high quality experiences HIGH MEDIUM LOW LARGE MEDIUM SMALL

29. 29 High quality content moving across the screens can change this… TV PC Mobile devices Typically… First time viewing Priority content Latest high quality US drama downloaded before release on TV Film viewed on PSP HIGH LARGE MEDIUM MEDIUM / HIGH SIZE OF SCREEN PERCEIVED VALUE OF CONTENT WATCHED If there is something special you really want to watch, then you watch it on the Internet (Female, Sweden)

30. 30 TV is thus the screen most likely to assume primacy More likely to be screen primacy More likely to be content primacy TVPCMobile Device People are more likely to naturally gravitate towards TV for video whereas PC and mobile devices multi-functionality means they are more likely to be used to satisfy a specific content need THE MULTIFUNCTIONALITY EFFECT

31. 31 Multi-functionality can lead to distracted viewing TV Mobile Device PC On PC especially, video has to compete with multiple other functionalities, leading to a more distracted experience overall THE MULTIFUNCTIONALITY EFFECT Video sole function Video primary functionVideo secondary function

32. 32 Out-of-screen context On PC, the biggest distractions are within the screen In-screen context PC distraction levels far higher due to multiple internal functionalities of the screen TV and PC feature similar distraction levels in terms of the environmental context For laptops the multi-functionality effect of the in-screen context can often sit alongside external distractions too

33. 33 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

34. 34 People predominantly share video content in two ways Sharing content Both are social, but in different ways PC TV Sharing content viewing experiences

35. 35 With Networked Sociability, content becomes comms Networked Sociability Content as comms PC TV Sociability Content as content

36. 36 This has implications for the user and the content itself Networked Sociability Content as comms PC USER Gains a sense of connectedness to others and a feeling that they are to some degree the producer of the content they are sharing CONTENT Immediate, in that it can be shared at a specific moment in time, yet also gains a potentially greater lifespan in that it can be stored for later reference

37. 37 Within this type of behaviour, UGC varies in its value Communicator Creator Content UGC LEVEL 3: sense of networked sociability through content delivered as comms by a trusted and personal source LEVEL 2: sense of connectedness and affinity with those who created the content LEVEL 1: some value may be derived though low quality production a feature VALUE The ideal UGC value here suggests clear opportunities for networked professional content

38. 38 In laptop usage, we saw a Communion Device for video This comes from the combination of Context Anarchy and Networked Sociability together with notions of personalisation and control Any context

39. 39 1 HOUSEHOLD DYNAMICS PLAY OUT ON SCREEN 3 THE CHALLENGE OF THE IN-SCREEN CONTEXT 4 CONTENT AS COMMS 5 TOWARDS A NEW ADVERTISING MODEL 2 CONTEXT, THE GREAT DICTATOR

40. 40 Cultural context Out-of-screen context The big challenges for online ads are in-screen In-screen context A number of defining idiosyncrasies of the in-screen context on PC lead to low tolerance of advertising on this screen (especially laptop)

41. 41 Expectations of platform control also impact on tolerance In the highly active platform context of PC where control mechanism are abundant, advertising adds an uncontrollable element It could even be seen that advertising contradicts the medium USER CONTROL AD TOLERANCE Lower (more push) Higher (more pull) HigherLower

42. 42 The world of online video demands a different approach Long-form lean back content Passive, with pushed content Mass media/shared screen Simple in-screen context (with established advertising breaks) Strategy: DISRUPTION Mixture of short- and long-form content Active, content pushed and pulled Personal screen Complex in-screen context (no established advertising breaks) ? LaptopTV

43. 43 Integration is more appropriate online Advertising needs to complement its environment – which is increasingly personalised, user-controlled, interactive and complex, with various types of video content viewed in different ways The aim should be to be relevant, in the most appropriate manner Mixture of short- and long-form content Active, content pushed and pulled Personal screen Complex in-screen context (no established advertising breaks) Laptop Strategy: INTEGRATION On the computer its all about your interests so advertising has to be relevant (Female, Sweden)

44. 44 Ads could become ever more subtle and woven in DISRUPTION Eg Traditional spots INTEGRATION Eg Ad-funded Content Indirect value to end user Advertising created as a self-conscious standalone piece Direct value to end user Advertising created to blend in to its environment Target by demographic Target by journey

45. 45 Some early thoughts on how value can be added Mixture of short- and long-form content Active, content pushed and pulled Personal screen Complex in-screen context (no established advertising breaks) Laptop ADAPTABLE FORMS CONTROLLABLE (WITHIN NETWORKS) INTEGRATED; RELEVANT TO VIEWER JOURNEY SIMPLER NARRATIVES; OPTIMISED SEGMENTATION AND TARGETING ONLINE ADS

46. 46 Contact Details 58-60 Berners Street London W1T 3NQ t: +44 00 20 707 99 555 e: nick@sparkler.co.uknick@sparkler.co.uk