Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.

Guiding Media. Inspiring Innovation. Leading Local.
Emerging B2C Digital Marketing Trends
With Focus on Digital Video on the Rise Among Marketers
Rick Ducey
Managing Director
rducey@biakelsey.com
January 28, 2016

2© 2015 BIA/Kelsey. All Rights Reserved. |
Objectives
From this session you will learn:
1. How Small and Medium Businesses (SMBs) are using and evaluating the effectiveness of digital marketing channels,
particularly social and video.
2. What marketers are spending and how they’re allocating their budgets between traditional and digital marketing.
3. And you will get insights and recommendations into how to best use digital social and video marketing as part of your overall
marketing mix.
BIA/Kelsey defines SMBs as firms with under 100 employees

Talking Points
What we’ll cover in this presentation
 Social media highlights
 Local advertising forecast
 How SMBs are spending their advertising budgets
 Assessing ROI on advertising
 Digital video marketing trends and directions
 Key takeaways

4© 2015 BIA/Kelsey. All Rights Reserved. | 4© 2015 BIA/Kelsey. All Rights Reserved. |
72%
77%
Mobile
Social Media Highlights

Facebook is the killer app, when it comes to reach and use.
But other social media channels have “super powers” depending on the demographic.
Internet Users
Men: 16%
Women: 44%

6© 2015 BIA/Kelsey. All Rights Reserved. |Sources: Facebook, BIA/Kelsey 2016.
Facebook is the killer app for social.
72% of online adults and 77% of SMB video advertisers use Facebook.

Social Media Services You May Have Never Used Are Huge
Snapchat skews toward women, younger and $50K+ demographics.
http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-
http://sproutsocial.com/insights/new-social-media-
demographics/#snapchat1755009028?rev=1453756984798&utm_campaign=socialflow_gizmodo_twitter&utm_source=gizmodo_twitter&utm_medium=socialflow

8© 2015 BIA/Kelsey. All Rights Reserved. |http://www.mediapost.com/publications/article/267445/instagram-ad-impressions-surge.html
 According to Brand Networks, Instagram impressions
delivered grew from 50M in April 2015 to 670M in Dec 2015.
 Headed to 1B+ monthly impressions by end of 1Q2016.
 To differentiate itself on an increasingly saturated platform,
Instagram advertisers to embrace more premium ad formats
-- and video especially -- this year.
 During the fourth quarter alone, video ads as a percent of
total ads served by Brand Networks jumped up from 9.54% in
September to 22.52% in December.
 “Video advertising on Instagram is rising to prominence
incredibly quickly," according to Brand Network’s Jamie
Tedford.
Instagram is Headed to 1 Billion Monthly Impressions
13x Increase in Impressions April 2015 to December 2015, Video Ads Rising Quickly

Quick Shout-Out to Sponsors at Multifamily Social Media Summit
Offering digital video marketing solutions

Social Increasingly is a Mobile Experience
Large uptick in mobile engagement with social networks.
https://www.comscore.com/Insights/Blog/Millennials-Boast-Huge-Social-Networking-Growth-and-Engagement-on-Smartphones

$146.6B
$168.9B
81.9%
BIA/Kelsey’s LocalAd Forecast Highlights

Newspapers Print
9.8%
Newspapers Online
2.6%
Direct Mail
25.6%
TV O-T-A
14.5%
TV Online
0.7%
Radio O-T-A
10.0%
Radio Online*
0.8%
Print Yellow Pages
1.7%
Internet YP
1.6%
OOH
5.6%
Cable
5.1%
Magazine
1.0%
Magazine Online
0.3%
Online / Interactive
11.3%
Email
1.6%
Mobile
7.7%
2016 U.S. Local Advertising Revenues — $146.6 Billion
Local Ad Market Keeps Noticeable Shares for Traditional Media
BIA/Kelsey sees traditional media keeping biggest share of ad.
*Radio online revenues include online revenues from terrestrial and online streaming services.Source: BIA/Kelsey, October 2015

Jeff Goldblum’s “Brad Bellflower” Pitches for Apartments.com
Traditional media counted on even by digital players to drive brand goals.

$103.3 $104.0 $102.0 $102.9 $101.2 $102.8
$38.0 $42.6 $47.8 $53.5 $59.3
$66.0
$141.3
$146.6 $149.7
$156.4 $160.4
$168.9
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2015 2016 2017 2018 2019 2020
Traditional Online/Digital
US$Billions
Note: Numbers are rounded.
2015-2020
CAGRs:
Total
CAGR 3.6%
Online/Digital
CAGR 11.7%
Traditional Media
CAGR -0.1%
US$Billions
Steady Shift Toward Digital Ad Spending in Media Mix
Digital rising to 40% of paid advertising by 2020.
Source: BIA/Kelsey, October 2015

*Other includes ad revenue from all other U.S. social networks (e.g., Pinterest, Tumblr and Foursquare).
Facebook,
81.9%
Twitter,
12.2%
LinkedIn,
2.5%
Other*,
3.4%
2020
Facebook,
79.7%
Twitter,
12.8%
LinkedIn,
3.9%
Other*,
3.6%
2015
Social Media Advertising by Company: 2015 & 2020
It’s all about Facebook when it comes to paid social advertising, rising to 81.9% share.
Source: BIA/Kelsey, October 2015

16© 2015 BIA/Kelsey. All Rights Reserved. |Source: BIA/Kelsey, October 2015
$6.0
$8.6
$11.4
$14.4
$16.6
$18.4
$3.2
$3.7
$4.3
$4.9
$5.3
$5.7
$9.3
$12.3
$15.7
$19.3
$21.9
$24.1
$0
$5
$10
$15
$20
$25
$30
2015 2016 2017 2018 2019 2020
Mobile Desktop/Tablet
U.S. Social Mobile vs. Desktop/Tablet Ad Spend
Mobile portion of social ad spending will triple 2015-2020
US$Billions

17© 2015 BIA/Kelsey. All Rights Reserved. |Source: BIA/Kelsey, Local Ad Forecast, October 2015
Local Television
67.6%
Local Cable
22.9%
Online Video
2.9%OOH - Video
4.6%
Mobile Video
2.0%
2016 Local Video Ad Spending Pie
TV and Cable Have Largest Slices but Mobile and Online Video Growing Quickly

18© 2015 BIA/Kelsey. All Rights Reserved. |Source: BIA/Kelsey, Local Ad Forecast, October 2015
$20.2
$22.3 $21.8 $23.3 $23.1
$25.4
$6.8
$7.5 $7.3
$7.9 $7.6
$8.1
$0.7
$0.9 $1.2
$1.4 $1.6
$1.8
$1.4
$1.5 $1.6
$1.7 $1.7
$1.7
$0.4
$0.7 $0.9
$1.1 $1.4
$1.5
$29.6
$32.9 $32.8
$35.3 $35.3
$38.5
$0
$5
$10
$15
$20
$25
$30
$35
$40
2015 2016 2017 2018 2019 2020
Local Television Local Cable Online Video OOH - Video Mobile Video
US$Billions
Local Video Advertising Spending
Online and Mobile Video Each Growing by $1.1B from 2015-2020

$88K
How SMBsAre Spending TheirAd Budgets

Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Average Spending for SMBs (Amongthosewith $25K+Budget)
$82,983
$87,923
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Wave 18 2014 Wave 19 2015
Q101 What was the approximate amount spent on advertising and promotion in the last 12 months?
Sample Size = 229
Video Users

SMB Ad Budgets Holding Relatively Steady
Higher Spending ($25K or more) SMBs Average about $75K in Annual Ad Spend

10.4
10.9
12.9
0
2
4
6
8
10
12
14
Wave 17 (Q3/2013) Wave 18 (Q3/2014) Wave 19 (Q3/2015)
Sample Size = 252
Media Used
(Average Number)
Q S11 Which of the following do you use to advertise or promote your business?
“Plus Spenders” Use 13 Media
Business trying new channels
Noe: “Plus Spenders” refer to SMBs in BIA/Kelsey’s Local Commerce Monitor that spend at least $25K in annual advertising.

76.6%
72.7%
65.6%
58.7%
51.0%
40.9% 40.8% 40.2% 40.0%
34.1%
32.3% 31.1% 30.6% 30.3% 29.2% 27.9%
26.5% 26.2%25.6%25.3% 23.9% 23.5% 22.6% 21.3% 21.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Q S11 Which of the following do you use to advertise or promote your business?
Sample Size = 243
Media Used forAdvertising or Promotion
Among SMB Video Users*: Website Video, YouTube and Other Online Video Are Top 3
Video Users
*About 25% of All SMBs Use Some Type of Video.

9.2%
10.1%
14.5%
15.6%
15.1%
21.8%
13.2%
3.3%
10.2%
12.4%
14.2%
22.3%
17.8%
18.5%
2.5%
6.3%
6.1%
10.1%
19.5%
20.9%
34.4%
0% 10% 20% 30% 40% 50% 60% 70%
Competitors Spending
Amount Spent Previous, Adjusting Up or Down
Advertising Discounts and Bargains
Business Conditions
Our Expected Revenues
Money Left After Other Expenses Are Paid
Exposure and Customer Engagement Benchmarks
Third Second First
Q104A What are the 3 biggest factors in determining spend?
Sample Size = 243
Factors Determining Ad Spend
Over Half of SMBs Cite Customer Exposure and Engagement Benchmarks as Drivers
Video Users
52.9%

53.3%
3.7%
37.6%
5.3%
0%
10%
20%
30%
40%
50%
60%
Increase Decrease Maintain Not sure
Q104 In the next 12 months do you intend to?
Sample Size = 243
Video Users
Spending Intentions For Next 12 Months
Over Half of SMB Video Advertisers Will be Increasing Their 2016 Ad Budgets

41.8%
22.3%
Assessing ROI onAdvertising

7.7%
13.1%
14.7%
22.2%
29.9%
38.2%
41.8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
None
Analysis Program
None, But Likely
Compare Performance Data
Vendor Data
Own Data
Google Adwords/Google Analytics
Q108 What type of analysis do you do to determine cost effectiveness of your marketing?
Sample Size = 243
Video Users
Analysis of Cost Effectiveness ofAdvertising
Google Analytics, Own Data and Vendor Data Used Most

ROIAssessment ofAd Media – Over 30 Channels Measured!
6.1%
0.0%
7.5% 6.1%
10.4%
1.4% 3.5% 5.3%
16.4%
5.2% 7.8% 6.4%
9.9%
5.4%
15.6%
1.0% 1.7%
11.0%
4.7% 7.8% 4.8%
14.1%
9.9% 8.3% 7.7%
7.7%
5.9%
7.5%
6.8%
10.5%
15.2%
4.0%
9.4%
7.4%
5.9%
9.2%
15.2% 5.5% 12.4%
3.4%
4.3%
10.3%
9.8%
13.2%
11.4%
27.6% 8.2%
2.3%
15.1%
6.4%
13.1%
20.5%
12.3%
9.8%
15.3%
10.6% 26.1%
22.6%
20.6%
22.1%
19.8%
20.2%
21.0%
21.7% 21.3%
19.6%
33.3% 13.9%
24.6%
27.8%
17.4%
6.2% 25.9%
21.8%
21.5%
17.6%
22.9% 24.2%
29.3%
15.7%
24.8%
19.0%
18.2%
12.3%
23.6%
20.7%
16.0%
22.6%
20.1% 19.9%
35.6%
15.6%
26.5%
20.0%
15.9% 13.3%
34.8%
25.5%
19.0%
29.4%
42.2% 35.0% 29.8% 28.4%
34.1%
16.2%
28.7%
27.8%
32.9%
20.4%
31.5%
24.3%
29.2%
21.9% 19.3%
26.8%
16.7%
26.2% 21.8% 22.3% 21.1% 18.9%
25.7%
17.1%
22.9%
13.2% 15.7% 18.7% 19.6%
13.9%
31.8%
18.7% 16.6%
10.4%
22.9%
11.0%
17.9%
11.8%
18.5% 20.4%
12.7%
22.3%
12.6% 15.6% 14.8% 15.8% 17.8%
10.7%
18.7%
12.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Not Sure Poor Equal to Spend Fair 2-4x Spend Good 5-9x Spend Excellent 10-19x Spend Extraordinary Over 20x Spend
Q107 How would you rate the ROI on media you use?
Sample Size = Variable
Video Users

1.7%
20.4% 22.9%
14.5%10.3%
7.4%
13.4%
15.0%
33.3%
18.3%
20.3%
24.8%
15.6%
22.4%
18.2% 22.7%
16.7%
13.0%
11.7% 12.2%
22.3% 18.6% 13.5% 10.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Video Display Other Online Video YouTube Website Video
Not Sure Poor Equal to Spend Fair 2-4x Spend Good 5-9x Spend Excellent 10-19x Spend Extraordinary Over 20x Spend
ROI Assessment for Digital Video Advertising
Video Display gets highest ROI ratings by SMB video users, 22.3% say 20x or better.

What’s Your ROI on Website Video?
Almost half of SMBs see at least 5x ROI on website video spending
Source: BIA/Kelsey, Local Commerce Monitor Surveys, Waves 16-19.
Good
5-9x Spend
Excellent
10-19x Spend
Extraordinary
Over 20x Spend
Top 3 Total
2012 33.9% 14.9% 7.7% 56.5%
2013 23.3% 19.2% 10.2% 52.7%
2014 14.9% 12.7% 16.4% 44.0%
2015 22.7% 12.2% 10.8% 45.7%

Three Basic Approaches to Video Production
BIA/Kelsey Recommends Long Term View of Video in Our Free Report
Source: BIA/Kelsey, “Video: The Conversion Media,” September 2015
1. Regular gritty self-produced video that, while it is a bit rough,
delivers a genuine sense of participation in the recorded event
2. Professionally produced video, whether created by a dedicated
in-house person or outsourced to a production company
3. Tentative steps into video with a few test programs delivered
to gauge interest among viewers
Download free at: http://www.biakelsey.com/Research-and-Analysis/Reports/Sponsored-Research/Video-The-Conversion-Media.asp

45.6%
24.4%
15.4%
6.7%
5.9%
1.6%
0.3%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Made Ourselves
Producer Custom Video
Didn’t have a video made
Producer Stock Video
Producer Slide Show
Other
Don’t remember
Q315 If you had a video made in the last 12 months what method did you use?
Sample Size = 243
Video Production Methods
Almost Half of SMBs Make Their Own Videos
Video Users

56.8%
Video, Social, Mobile, VR
Digital Video Marketing Trends and Directions

29.9%
26.9%
16.6%
14.2%
10.2%
5.4%
7.1%
5.5%
6.6%
21.7%
19.7%
17.9%
17.8%
13.1%
13.3%
9.2%
9.5%
5.3%
17.3%
21.1%
21.9%
24.3%
25.3%
24.5%
20.9%
21.2%
20.1%
16.6%
17.5%
24.5%
26.3%
28.2%
31.8%
29.1%
33.4%
30.2%
14.6%
14.7%
19.1%
17.4%
23.2%
25.0%
33.7%
30.4%
37.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Broadcast Advertising
Discount or Loyalty Program
Mobile Advertising
Print Advertising
Analytics/Performance Assessment
Video
Social Media Advertising
Email Marketing
SEM/SEO
Not at all a priority Low priority Moderate priority Very high priority Extremely high priority
Q608 What is your future marketing priorities for the following options?
Sample Size = 243
Future Marketing Priorities of SMBs
56.8% SMBs Say Video is a “Very” or “Extremely” High Priority
Video Users
56.8%

http://www.videoedge.net/news/expertise/youtubes-robert-kyncl-says-digital-video-will-become-largest-way-people-spend-their-free-time-2020/361944?utm_source=twitterfeed&utm_medium=twitter
 “Digital video is exploding.”
 “Already the youngest millennials are watching more digital video than TV.”
 “In fact, it has now overtaken social media as their top online activity.”
YouTube’s Robert Kyncl 2016 CES Keynote
Video already bigger than social media among millennials

Digital Video Use is a Growing Habit
Up to 76 minutes per day for average adult in 2015, up almost an hour since 2011

Ooyala, Global Video Index, Q3 2015
 Digital video must work on the phone for greatest impact.
 Bigger screens, data plans, changing consumer expectations
all point to further growth in mobile video use.
Mobile Video on the Rise – Quadrupled Share Since 2013
Website video is important but more viewing on phones these days

39© 2015 BIA/Kelsey. All Rights Reserved. |Source: www.multifamilyexecutive.com/property-management/marketing/more-consumers-using-mobile-to-apartment-hunt_o
Mobile Video Works for Multifamily
40% of consumers consider mobile video an evaluating tool

40© 2015 BIA/Kelsey. All Rights Reserved. |http://apartmentinternetmarketing.com/2015/11/forget-reality-multifamily-marketing-is-poised-for-a-virtual-change/
Virtual Reality, Augmented Reality and 360° Video

Video
Social
Mobile
Key TakeAways

Key Take Aways
Multifamily Marketers Can Ride the Wave of Video, Social, Mobile
1. SMBs are using and evaluating the effectiveness of digital marketing channels, particularly social, mobile and video.
• Using more different media channels, up to 12.9 on average for larger spending SMBs
• More use of social and. mobile
• Website video currently gets highest ROI for video advertising
2. Marketers are spending and how they’re allocating their budgets between traditional and digital marketing.
• Shifting spend to digital, 40% or so on average
• Weighting Mobile, Social, Video
3. Insights and recommendations into how to best use digital social and video marketing as part of your overall
marketing mix.
• Match marketing channel, creative to consumer purchase journey stage and audience targeting.
• Programmatic exchanges provide self-serve options and more targeting
• Develop goals, metrics, assess ROI and optimize campaigns – easier to do in digital media
• Plan and measure cross-platform campaigns

Questions & Comments:
Guiding Media. Inspiring Innovation. Leading Local.
Rick Ducey
Managing Director
rducey@biakelsey.com

Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.

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Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.