New Zealand Is Buying Off Online Video Big Time

Strong video to purchase data has come out of New Zealand. 40% of those who watch or listen to a video / audio review have gone on to actually purchase the product.  This is highly significant marketing information for any marketing executive / business owner to review.

With over 70% of Kiwis watching online video sites such as YouTube, this means over a third of New Zealanders are buying products after watching online video.  The data comes from Nielsen New Zealand’s  Social Media amongst New Zealand Businesses Survey conducted in December 2009, and released in July 2010.

This New Zealand data matches US based research that we have profiled showing how online video drives engagement such as the Interpret Survey and drives actual buying and the Comscore which showed a similar position to New Zealand for US shoppers behaviour around online video.

The message is simple for businesses and advertisers. The internet revolution is now moving into its next phase in the online video advertising kingdom. Avoid at your peril. Interestingly here in New Zealand our online video company SilverlineMedia.TV is approaching it’s 2,500 video. Last year video was being embraced primarily by SME’s as they saw how they could present themselves affordably against their bigger high street competitor. This year we have seen the mid-sized companies and brands finally getting into online video.  The online video advertising and content revolution is clearly on in New Zealand.


Internet Video Viewership 120% year on year growth.

Internet users in the USA watched a staggering 34.2 billion videos in January 2010, up 120% year on year, according to the leading internet metrics research company Comscore.   This worked out at 187 videos per viewer in the month. This is further conclusive proof that internet habits are changing from text to video.  The average video length was 4.1 minutes.  You’ve probably done the maths already but that is 12.7 hours of video consumed per video viewer!

Here in the New Zealand local local internet metrics company Nielsen indicate 70% of kiwis online are viewing video.  At, we are at the coal-face having made over 2,000 full motion and virtual videos for our clients since our launch in late 2008.  In Janaury our videos were played 30,647 times on our customer’s sites and the numerous video sites we distribute to from the mighty YouTube to Dailymotion.  This accounted for 39,000 minutes of video informing customers about businesses products and services.

Video is clearly on an incremental projectary as costs of production reduce, return and benefit demonstrate the value and the sheer range of opportunities to use video to persuade and inform customers and partners. Add the smarts and effectiveness of online video advertising and the argument for video as a key part of a businesses business / media strategy are frankly pretty simple.

Online Marketing Cinema Trends – Online Video – Social Media

Terrific feedback on the online Marketing Trends presentation I made at New Zealand Cinema Conference.

Review the slide show here:

View cinema trends presentation at slideshare

Local Online Advertising destroying print, cable and local radio

borrellogoDespite a tough year all round for the advertising industry, local online advertising in 2009 continues to grow in the USA to US$14.9bn, according to Borrell. Driven by search, local directories and video advertising local business has been and continues to plan to pull spend from traditional channels such as newspapers, cable, and radio into online.

This dramatic spend shift, has certainly been a major component of the closure of 1 in 2 newspapers in the USA over the last 12 months, as advertisers realise they can deliver results (enquiries, sales and branding) at a fraction of the cost online, vs. the tradtional media channels they have been using.


For local business these kind of statistics should be re-enforcing marketing planning into online media. Viewing the detail shows the key areas of growth are search (effectively Google in New Zealand), directories – increasingly new local offers (see and here) and vertical directories (good local examples for restaurants and for the horse market).

Online Video is clearly identified as a growth driver through businesses advertising with video online and ensuring their listings in directories and in search engines are re-enforced with video to both stand out and increase conversions.

Unsuprising that search, directories and video are fundamentally changing local advertising behaviour. The old channels did work, they were just expensive and media companies ran obsene proft margins for these, well done to them. They have not adapted fast enough and now small businesses can reach their market more effectively, efficiently and affordably.

If you are small business that is not or is considering changing your marketing mix, drop us a line, we’ll add some distinct value to ensure you get more bang for your hard-earner buck.

US Online Video Advertising Spend $1bn 2010

new-iab-logoInteractive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) released the US IAB Internet Advertising Revenue Report for the first half of 2009 on 5th October. U.S. Internet advertising revenues were at $10.9 billion in that six month period.

The important metric is the report that digital video continues to experience robust growth with a 38% increase from the first half of 2008. This is a dramatic rise given the recessionary pressures on traditional media spend to some extent parts of the online advertising sector.

The report reveals an audited video spend of US$477m in the first six months of 2010. With economic conditions easing, the Christmas reatail period ahead, and further embracement of video by advertisers compounded by more online options we can see online video advertising spend hitting $1bn in the USA for 2010.

Here in New Zealand our local IAB is considering breaking out further detail of spend so we can also see which formats are rising faster.  In 2Qr the NZ IAB / PWC reported one of the highest ever spends – $52.49m. The Moving Annual Total is now at an all time high of $199.8m. In New Zealand online advertising spend is ahead of outdoor and cinema and is likely this year to overtake magazine advertising spend.

Locally we are seeing a signifcant rise in online video marketing with numerous adverisers and publishers embracing online video advertising, video content and many our using services such as to power small business video and classified video content.

What is an Engaging Online Video?

silverlinemediatvlogoWe are often asked at, what makes an engaging video. Many of our clients initially want a ‘funny video’ or a ‘viral video’.  There certainly have been some terrific ‘funny online videos’ but the key questions we work through with our customers at the start of a brief include :

  1. What is the role / objective of the video.
  2. What’s our success measurement / KPI.
  3. What longevity do we need.
  4. Does our brand / service best suited by a funny creative.
  5. What is our customers expectation of our brand message.

Most importantly to the question ‘does the video have to be funny?’.  My personal view is funny videos / viral videos are the exception, terrific when they come off, which is rare, but in most cases are risky ground for brands and business.

More interestingly is to review factual data on what actually makes video engaging.

Encouragingly the recent Emarketer/Nielsen survey re-enforced our thinking that interest and purchase desire is driven by video that is informative and emotionally pulling. For our customers their video can hit these drivers.


Reviewing the table above, you will see that the segment that reacts best to informative video is the under 20 age group. Another blow to those media commentators pedlling the story that the youth of today are dumbing down, though apparently this has been a view through-out the history of man-kind.  Unders 20s react well to all styles of video but over half are engaged by information and educational content.

As we approach our 2000th video at results from our customers prove that good informative and passionate website video improves conversions and through online video distribution and marketing is attracting quality customers at a fraction of other marketing channels. We had a client today,, which after one day has received enough response to pay for the video four times over. A really informative video about the Spotted Horse Breed. Fascinating.

Major UK Online Video Agency Growth


According to a survey by the webtventerprise in the UK Media buyers will be increasing online video advertising budgets by 50% over the next 12 months.  

The survey of 101 media buyers currently booking pre-roll advertising campaigns and found that almost all (97%) were planning on either maintaining or increasing video advertising spend. Over half (54%) were looking at a 50% budget increase in the coming year; while a further 10% said they would be doubling spend.

Despite online video advertising being a relatively new advertising medium, along with brands’ restricted budgets in 2009, Web TV Enterprise’s research revealed that a quarter of buyers are currently spending between £25,000 and £50,000 on a video advertising campaign. 44% of the sample said they spend between £10,000 and £25,000.

Almost 70% of buyers questioned stated a preference towards bespoke, premium ‘solus’ pre-roll adverts; with 82% agreeing that solus spots were more valuable than shared ones.

General survey feedback also suggests confidence in the online video advertising space is high, despite budget cuts and a lack of client understanding being two of the prominent issues facing the industry at present. Many agree that online video advertising will have a strong presence in schedules over the next twelve months.

Jamie Estrin, Director of Web TV Enterprise and IAB Video Council member said: “As one of the largest players in this evolving market, we have seen the appetite for online video advertising grow exponentially since launching our premium online video ad-network in 2007. Our feeling is that we are now at a tipping point in the UK market. We base this on the fact that media agencies are, for the first time, considering online video advertising as part of the media mix on the majority of campaigns where there is a TV ad creative – this was not the case 12 months ago.

The survey did of course talk to those buyers who are already purchasing online video advertising, nevertheless, a clear indication from the UK, a very strong online advertising market, that online video is moving along to or ahead of the global forecasts posted in our research category.

Pre-roll ads in particular are gaining ground and at we have seen solid results from our client tests in this area.

Online Product Video Really Driving Buying Interest


A key objective and finding in the recently released Interpret Survey  was that high engagement levels translate into high satisfaction for viewers, high brand recall for advertisers, a greater inclination for consumers to seek product information, and potentially more money for publishers.  An obvious sequence of events, but critical for publishers for  proof for online video investment and sales pitches as ‘traditional’ online advertising is under pressure,

According to the study:

  • 27 percent of respondents who recalled a high engagement video searched for more information about the product.
  • 28 percent visited an advertised brand or product’s website after viewing a high engagement video.
  • High engagement videos account for nearly half (47 percent) of ad recall.

“This propensity for sharing and ad recall translates into improved viral ‘buzz’ for advertisers and their ads – if they take advantage of online video opportunities properly,” said Liz Huszarik, senior vice president, Warner Bros. Media Research.

This is the reaction and feedback that we are getting from customers of In our view many websites are complicated, and word heavy. Online video gets the message of the business and product across in multi-sensual and dynamic way. Its not suprising a good video ad gets cut-through and generates further interest vs. the decreasing return of the traditional banner. See Eyewonder for examples of quality video creatives from leading worldwide agencies .

This survey also supports the Comscore Survey in May which we reported in which suggested a 40% uplift in buying from watching online video.

Survey  by  Interpret (in conjnuction with  Yahoo, Havas, Warner Bros and Media Research and PHD)

Online Video Watching at Work matches Home


New Research Finds 68 Percent of Respondents Watch Videos During the Day.  Interpret (in conjnuction with  Yahoo, Havas, Warner Bros and Media Research and PHD) significant and deep survey on video engagement shows that viewing online video is rampant during work hours as it is during ‘at home’ hours.  For advertising agencies this is particularly revealing for planning. Normally with TV when mass marketing the peak time is normally 6pm to 9pm, clearly with online video advertisers can reach target markets throughout the day at significant levels. This US study has 68% of online users viewing videos through the day.

For small medium businesses this research further supports that your audience is heavily consuming video. Through the right targeting / distribution (and product nature) online video can work through the day for the business.  Creating an online video for you business, product or service is lileky to be one of the best ROI advertising decisions you ever make.

We certainly are seeing significant viewing of business and product video here in New Zealand. View our recent property video report.



Online Video Drives New Car Purchases

globeandmailrecently published an interview with Bonita Stewart, Director of U.S. Sales, Google where she elaborated on recent research undertaken by Google and Polk (leading online auto info player) which highlighted the importance of online video in car purchasing decisions.

Key findings included comment that 83 per cent of new-vehicle buyers visited video-focused websites prior to purchase. Unsuprisingly nearly every buyer today uses a manufacturer’s or a third-party site during the purchasing process, however 55 per cent of new-car buyers actually switched brands after doing research online. Read the full interview .

Here in New Zealand many of the car manufacturer sites are now including upfront video and using video within their online advertising creatives, which is encouraging. From our small business perspective we have created a number of online video solutions for car dealers to drive conversions and new buyers and purchasing. See IndyCars and MotoGB videos  Another good example of car video (used, new and news) can be seen on Auto Trader where many  ‘cars for sale videos and dealer videos’ can be seen.