The Role of Video in the TV Purchase Process

EXECUTIVE SUMMARY

Videos Role in the Consumer Journey Video is effective throughout the consumer journey by introducing new products, functioning as an effective research tool, and spurring shoppers to make in-store and online purchases. Insights and Recommendations Use video to empower consumers and drive sales. Discoverability is key; distribute videos wherever consumers watch video and research/shop. Run best screen available campaigns to reach consumers on all devices and increase impact.

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

METHODOLOGY
Goal is to better understand how consumers use video to research and buy tech products (TVs, Smartphones, tablets) Using Competes panel of 2MM U.S. consumers, Compete measured consumer behavior within the industry Compete conducted an online survey using panelists who researched or shopped for tech products online within the past 6 months. Surveys were fielded between Sept 6th to Oct 13th 1186 respondents who qualified for the survey after indicating they had both a) shopped / purchased a tablet/TV/smartphone and b) watched some form of online video in the past 6 months

Compete observed clickstream behavior from its panel product videos are defined as product videos watched on yt.com, retailer sites, oem sites products analyzed: TVs

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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The consumer decision journey

42% of TV shoppers used TV videos while researching and shopping, of which 81% watch for more than 10 minutes
Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

Video is effective throughout the consumer journey

Compete Survey: V4 - Thinking about the <Product> you recently researched or shopped for, approximately how much time did you spend, overall, watching videos online about <Product>.? Please select one answer only. (n=512)

THE CONSUMER JOURNEY

Active Evaluation

TV Product feature videos and reviews help consumers narrow choices.

Initial Consideration
Video helps consumers learn about TV products

L O YA LT Y

Purchase

Video drives TV purchase activities.

Post-Purchase Experience

Most consumers will use TV video again

DEVICE DEMOCRACY
TV shoppers conduct research on three screens, generally opting for the best screen available

Devices used to watch TV videos

89%

Locations shoppers use mobile to research tech products

while at home while at work while in a restaurant, coffee shop, etc while shopping in a retail store during my commute to/from work 5% 15% 64% 55% 40% 47% 50% 33% 43% 32%

14%
tablet

27%

mobile phone

computer

tablet (n=74)

mobile phone (n=154)

Compete Survey: M1 - Which of the following devices did you use to watch videos about <Product> while researching and shopping for <Product>? Please select all that apply. (n=512)

Compete Survey: M3 - From which of the following locations did you use your mobile phone / tablet while researching or shopping for <Product>? Please select all that apply.(n=74-154)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

INITIAL CONSIDERATION
Video introduces TV products to shoppers with over 83% of TV buyers visiting YouTube in the two months leading up to purchase.

After viewing TV videos 59% became interested in specific TV models 61% introduced to TV brands not previously considered 35% heard about the TV product for the first time

Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one response for each statement. (n=512); Rows do not add to 100% because there was also a No opinion option, Compete clickstream data- viewers of TV videos

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

ACTIVE EVALUATION
Video helps TV buyers determine which products to buy.

After viewing TV videos 70% learn more about specific TVs 66% narrow down options of TVs 45% talk to family/friends about TVs

Compete Survey: V5 - Please state how much you agree with each of the following statements about the online videos you watched to learn about <Product>. Please select only one response for each statement. (n=512); Rows do not add to 100% because there was also a No opinion option V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

ACTIVE EVALUATION
After viewing tech product videos on mobile devices, shoppers are using mobile to research further, making mobile a critical tool in evaluation.

After viewing TV videos online 60% researched/shopped not while in store 51% looked for promotions or coupons

Compete Survey: V12 - Specifically, which of the following did you do on your mobile phone as a result of watching <Product> videos online? Please select all that apply. (n=86)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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MOMENT OF PURCHASE
TV shoppers take action toward purchase after viewing TV videos

visited a store that sells TVs

61% 55% 39% 36%

visited a website that sells TVs searched a store's inventory for a specific TV visited a manfacturer's website

Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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MOMENT OF PURCHASE
Mobile is a key tool in driving the purchase process and tech shoppers turn to mobile after viewing tech videos

After watching tech product videos online 72% looked up a stores location on their mobile phone 57% researched and shopped on mobile device while in retail store

Compete Survey: V12 - Specifically, which of the following did you do on your mobile phone as a result of watching <Product> videos online? Please select all that apply. (n=86)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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POST-PURCHASE EXPERIENCE

68% of TV shoppers are likely to watch videos again the next time they are shopping for TVs

Videos can lead consumers back for their next purchase.

Compete Survey: V15 - Using the scale below, how likely would you be to watch videos about Product> online the next time you are shopping for a <Product>?(n=512)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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KEY TAKEAWAYS
Video heightens every stage of the consumer journey Initial Consideration: Video helps consumers learn about TV products Active Evaluation: TV Product feature videos and reviews help consumers narrow choices. Purchase: Video drives TV purchase activities. Loyalty & Post Purchase: Most consumers will use TV product videos again
.

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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Insights and Recommendations

RECOMMENDATIONS

1 2 3

Empower consumers and drive more sales Make videos discoverable where consumers watch video Implement best screen available strategy

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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EMPOWER CONSUMERS AND DRIVE MORE SALES

63% of viewers said videos were useful in the purchase process and 61% visited a store as a result of watching.

Types of product videos being watched by TV shoppers

% of viewers watching 39% 26% 40% 34% 54% 32% 7% Types of Videos watched TV Ads through streaming video Online advertisements Professional reviews Consumer Reviews/ Testimonials Product feature videos Consumer Generated videos Repair footage Initial Consideration Active Evaluation Purchase Loyalty

Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=205) V10 Specifically, which of the following types of websites did you visit as a result of watching videos about <Product> online? Please select all that apply. (n=282) Compete Survey: V6 - Which of the following types of videos about <Product> did you watch online while researching or shopping for <Product>? Please select all that apply. (n=512)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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EMPOWER CONSUMERS AND DRIVE MORE SALES

Video is being under-utilized by brands. They should build video content to improve the customer experience. Many TV shoppers could not find what they needed 20% couldnt find information about un-boxing a TV 15% couldnt find professional reviews 14% couldnt find pricing information 11% couldnt find customer testimonials 8% couldnt find product demonstrations
Compete Survey: V8 - What type of information, if any, were you unable to find while researching video (s) online about <Product>? Please select all that apply. (n=512)

Only 49% found everything they were looking for.

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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MAKE VIDEOS DISCOVERABLE

Product videos lack discoverability: 49% of TV shoppers arent aware that TV product videos exist online, but would watch if they come across them in the research process.

websites used by TV buyers to watch product videos

retailer websites manufacturer websites professional online <product> review youtube.com shopping comparison websites social networking websites newspaper/magazine websites other video sharing websites

77% 59% 31% 28% 25% 17% 9% 8%

Compete Survey: S7 Why is it that you did not view a video about <Product> while researching or shopping for <Product > in the past 6 months? Compete Survey: V1 - Which of the following types of websites did you visit to watch videos about <Product> while researching or shopping for <Product>? Please select all that apply. (n=112-155)

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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MAKE VIDEOS DISCOVERABLE

Increase reach and discoverability by seeding product videos where consumers are already watching. 83% of TV buyers visit YouTube in the two months leading up to purchase.

% of TV product video viewers who view YouTube non-endemic content

37% 29% 27% 18% 16%

13% 12%

11% 10% 10% 9% 9% 8%

5% 4%

2% 1%

Compete Clickstream data Q2 2011

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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IMPLEMENT BEST SCREEN AVAILABLE STRATEGY

TV shoppers use a variety of devices and online activities to research TVs. Brands will be most effective by leveraging all of these opportunities.

Consumers employ a variety of research activities and opt for the best screen available 15% of TV shoppers turn to mobile devices to research after viewing videos. 27% of TV video viewers are watching on mobile phones or tablets. 32% of TV video viewers are conducting TV category searches on Google within a week of viewing video 5% of TV video viewers are conducting TV category searches on YouTube within a week of viewing video
Compete Survey: V9 - As a result of watching videos about <Product> online, which of the following actions did you perform, if any? Please select all that apply. (n=512) Compete Survey: M1 - Which of the following devices did you use to watch videos about <Product> while researching and shopping for <Product>? Please select all that apply. (n=512) Compete clickstream data Q2 2011

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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I M P L E M E N T B E S T S C R E E N AVA I L A B L E S T R AT E G Y
In multiple case studies of mobile and desktop campaigns, advertisers have seen better results when integrating across all screens

+48% recall +4 reach pts 2x frequency

source: Nielsen Multi-Screen Lab Study, Sept 11; Google Incremental Reach Preliminary Results from 6 US studies for total YT/GDN campaigns.

Source: The Role of Video in the TV Purchase Process Study, Google/Compete, US, Dec 2011.

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