Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

As part of YuMe’s research, Insights from Multi-Screen Research Millennials: Distinct in Video Consumption, in partnership with IPG Media Lab, they looked at video advertising, its effects on Millennials and topics like distraction due to multi-tasking, time-shifted TV content and other factors. Below we focus on a few founding’s;

Video Consumption And App Usage

The other way to watch video which is covered in the research is streaming it from a webpage. With technologies like VAST and HTML5 video advertising can now be delivered to the majority of mobile devices. Depending on the operating system, some viewers may be able to multi-task while the ad plays, which offers a lower percentage chance that the viewer will see the ad. As far as I can see, the video app is the way to go whenever feasible. Also, it’s the most commonly used way to watch videos by Millennials and Generation X on smartphones and by them and Baby Boomers on tablets.

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

Multi-Tasking Impacts Video Advertising Effectiveness

This becomes even more important when you take into account the fact that a large majority of all three generations multi-task when watching a video. The difference is the fact that the Millennials do it with other connected devices. Even 80% of Baby Boomers said they multi-task while watching video. I too am guilty of that, in fact I’ve been on my laptop and iPad at the same time as watching something on the DVR. Hey, I have a lot of things to get done some days!

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

A full 13% more of them multi-task on various connected devices than Generation X, 23% more than Baby Boomers. Then again, I think the Boomers weren’t brought up that way while the Gen X’ers at least had home computers and game consoles which might account for some of the multi-task mentality.

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

As for the Millennials, they were all practically born with a phone in their hands and many have better smartphones than I do. But the real information in all this comes when you take into account what that multi-tasking does in regards to video advertising.

As YuMe’s research found out, it lowers ad recall. Now it’s not all that severe in that it only lowered it 2-9% via smartphones, tablet apps and tablet browsers. Then again, Millennials weren’t all that great at unaided ad recall from TV or the PC anyway compared to Gen X’ers, so it is in line with expectations on the other platforms. As the chart below shows, smartphone video ads had the highest unaided ad recall. Does that translate into effectiveness? I suppose so, if you’re just going for recall and that can then translate into brand awareness overall later.

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

Video Ad Impact on Millennials

Now, here’s a prime piece of information from the research. If you want Millennials to think that your brand is in fact “modern” then you should be targeting them with video advertising on smartphones. That combination showed the highest agreement in believing that the ad shown was from a “modern brand.” Of course, it was still only 6.7%, tablet browser video ads came in at 5.3% and everything else was under 4%. I suppose that’s technically almost 100% more effective than video advertising on TV or PC.

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

Interestingly, video ads on smartphones also scored highly with Millennials and Gen X’ers on the belief that it was from a “brand on its way up.” But only 1.1% of Gen X thought it was a modern brand. Gen X had a negative response in regards to whether the brand was quality, premium or a brand they respected. Almost as if, your video ad incited vitriol in their brain and they suddenly didn’t like the brand at all. How positively fascinating! I wonder if that is due to many Gen X’ers remembering the days before massive online video ad loads and yearn for those nearly ad-free days again, whereas the Millennials have pretty much grown up with more and more video advertising online. There’s something here I think that could be more specifically delved into and might offer some extremely interesting research that could translate into how to better target Gen X with video advertising (I suspect the answer will be “with much, much less of it”). It could also be the fact that Gen X simply things video ads are blasé

.Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

Meanwhile, the Millennials still had positive reactions to those questions, however, the “brand I respect” was quite low, at just 1.7%, whether it was a quality brand did quite well, relatively speaking, with 3.7%.

Smartphone Video Ads Over 100% More Effective with Millennials Than TV [Report]

Millennials are Dropping Old School Video Platform

Television is old school to the Millennials, who have had the highest drop off rate for TV usage over the past three years according to the study.  Of any demographic, Millennial women are dropping the most TV usage, 10% less since 2010, topping even Millennial males who dropped TV usage 7% since 2010. In this graph you can see they are pointing to the 18-24-year-old group (born in 1989-2000), a slightly narrower definition of Millennials.

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

This means that traditional TV advertising is not reaching them like it used to and this trend will probably continue in a downward way making it less and less effective for this major demographic. They are watching some time-shifted television shows, as you can see below, via a DVR and most likely online as well.

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

The Millennials use their smartphone and tablets more than any other demographic on the chart and are practically the anti-thesis of the 65+ group who uses TV the most and mobile devices the least. A more interesting trend might be the total lack of DVR usage by the younger 18-24-year-old demographic. Growing up in the full on video streaming age seems to have made them TV and DVR averse. Important information if you’re looking to target them now, or in the near future.

Video Content Viewing by Type

It is also interesting to note that the Millennials also said they watch a lot of TV shows, and user-generated content. That might help explain the fact that Netflix and YouTube account for 50% of all peak period Internet traffic in North America. What they don’t watch, is news, with only 13% saying they watch it. Speaks volumes to the future of the country.

The content they do watch is, again, mostly on three screens; PC, smartphone, and tablet. 49% reported watching ‘web videos’ on smartphones, 44% said PC and 44% said tablet, when given the option of picking two options (presumably TV and DVR were in there as well).

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

Where Millennials Watch Video

Where they watch the content is also interesting. The three major demographics, Millenials, Gen X, and Baby Boomers, all ranked in the high 90’s percentage-wise in terms of watching at home. However, over 50% of Millenials said they are likely to watch content “at a friend’s or significant other’s home” a full 20-30% more than the others. While commuting 32% of Millenials said they watch content (5-10% more than the others) showing they they are either, hopefully, car pooling, or using public transportation.

Good news for retailers though, 13% reported they are likely to watch video, “in a store,” which could prove useful for the upcoming holiday shopping season. Compare that to 8% of Gen X’ers and 3% of Boomers. Clearly, that in store video marketing, or online product video marketing, is going to be seen by the Millenials.

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

Where to Watch Video on Smartphones and Tablets

YuMe also reported on smartphone and tablet usage in each of those locations as well. At home ranked in the 98-100% range with Millennials, at a friend’s pulled 58% and 49% respectively. Smartphones are on the rise everywhere though which might be indicative of bigger screens, better resolutions and faster mobile data networks. In the retail space, 19% said they’d use their phone and 6% said they’d use a tablet. However, when they leave the store and go eat or drink at a bar or restaurant those numbers skew higher with 26% saying they would use a smartphone and 14% a tablet.

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

So perhaps some cross-promotional streaming video targeting is in order between retailers and restaurants, especially to those trying to target the Millennials.

To App, Stream or Download?

This is the last section of the YuMe report that I’m going to look at in this article so I can devote an entire article to the video advertising aspect of it. There’s nothing groundbreaking here in terms of results in that the highest percentage of each demographic said they use an app to get their video content. That’s closely followed by streaming it straight from the web. Downloading to a device ranked last with under half of all demographics saying they do that.

The key information here is that if you’ve got video on the web and you want to target the Millennials, you need to make sure you’ve got an app for that, or that it can stream to all the mobile platforms, both tablet and smartphone. Android, iOS and Windows phones and tablets are probably going to nail the majority of them. I don’t see too many using a Blackberry device or anything too outside the major operating systems.

Millennials Watch Less TV, Use Smartphones and Tablets for Video Viewing [Report]

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