State of the art on VERTICAL VIDEO

1 State of the art on VERTICAL VIDEO JUNE 2018 The evolution towards vertical: from 16/9 to 9/16 video formats. What do the evolution of mankind and video format have in common? The quest to rise to a vertical position, to rise through the clutter, to get noticed The rise of the vertical screen devices and vertical video content is the latest evolution in terms of video format. Driven by consumer behavior, it is appearing everywhere. It is effective, it is impactful. Horizontal LANDSCAPE Vertical LANDSCAPE Vertical PORTRAIT Most digital video is already watched on mobile devices and even though people virtually never turn their mobile devices on their sides, many marketers still make their video horizontally. These marketers are losing out on the significant and engaging power of vertical video, which according to Facebook s own research increases brand lift, and is 5x more likely than traditional video to be watched with the sound on. This paper lays out the background on vertical video, the latest research on its impact and some of the best ways to harness the world s fastest-growing new video format. CONTENTS 1. 2. 3. 4. 5. 6. 7. HISTORY OF THE VERTICAL FORMAT THE RISING IMPORTANCE OF VIDEO CONTENT THE TAKEOVER OF VERTICAL SCREENS THE IMPACT OF VERTICAL VIDEO CONTENT CREATION FOR VERTICAL IS A CHALLENGE VERTICAL VIDEO SOLUTIONS CONCLUSION: YOU ARE ALREADY MAKING VIDEO FOR MOBILES. TIME TO MAKE IT PROPERLY

2 1. HISTORY OF THE VERTICAL FORMAT Nam June Paik, the father of video art, frequently experimented with the vertical format; in particular with his The Egg Grows installation back in 1984. He literally twisted the horizontal 4:3 screens to vertical to amplify the message of the growing. Reference In 2005, Bill Viola, a pioneer of new media art, created works that combined filmed images and music in what he calls total environments that envelop the viewer in image and sound. View Video American, b. 1951, New York, New York, based in Long Beach, California

3 More recently, in 2012 the Muppets picked on the fledgling trend for portrait video trend and mocked it as a silly Vertical Video Syndrome. At 1:21 in this video is their vision of how YouTube would adapt to vertical: showing four vertical videos at once, just to save bandwidth This showed prophetic understanding that digital platforms and social networks would have to adapt to the vertical format and to the exponential increase in data traffic caused by video consumption. Funnily enough YouTube finally adapted its player to vertical videos in December 2017. View Video 2. THE RISING IMPORTANCE OF VIDEO CONTENT There is no doubt that video is becoming the language of the 21st century. Video s impact on consumer buying decisions has been widely demonstrated. Many people are lazy and prefer to watch videos. This includes executives 59% of them prefer watching videos according to Forbes. After watching a video, viewers change behaviour vs. other type of content. They are significantly more likely to: take action, generate word of mouth, to purchase, share with other, and last but not least to have an emotional reaction! Let s be honest, watching videos is easy and entertaining, most of us just love it...

4 Social Media Content Formats that influence US Internet Users to Purchase a Product, April 2017 % of respondents Video 86% Image 78% Text Animated GIFs/images Live stream 40% 40% 44% Note: ages 18+ Source: gen. video and Geometry Global, The Influence of Influencers June 22, 2017

5 3. THE RISING OFFER OF VERTICAL SCREENS 3.1. People love to watch and share videos on social medias: Slowly but surely, each social network has made the transition first to video content then to vertical video format. It took them quite a while, pushed by consumer behaviour, by clients and by competitors who were setting new benchmarks. Video 2013 2013 2017 2013 2004 2009 2005 2017 Vertical Video 2017 not yet availabe only for stories 2017 2017 2009 2017 3.2. Mobile devices are the place to be to meet your audience: Mobile Internet users already represent half of the world s population. Over 50% of all Internet traffic is now on mobile phones, the latest natural extension of your hand. Average monthly data consumption is now 3 GB! 72% of digital video watched on mobile by 2019 (Zenith.) 3.3. Traditional media are now digitalizing their offer to cope with video: With the increased deployment of digital technology in the out-of-home space, digital OOH is growing fast. Stations, Airports, Bus stops, Tube stations,... Posters and billboards are now moving to DOOH and increasingly these screens are vertical. View Video

3.4. Increased Spending in Original Digital Video Programming and Mobile Video (IAB 04.03.18) 6 Nearly 60% of marketers digital advertising budgets are allocated to digital video according to the 5th annual Digital Content NewFronts: Video Ad Spend Study 2018. Half of advertisers will increase spending on digital video, mobile video, and advanced TV, and two-thirds of advertisers will shift funds from TV budgets to fund their digital video advertising. Investments in digital video and mobile video have been climbing steadily since 2016 with over 50% growth, especially in original digital video (ODV) programming, which is expected to grow up to 68% by the end of 2018. 4. THE IMPACT OF VERTICAL VIDEO Whenever vertical video is used, it has great impact: Snapchat: Vertical videos 9x more likely to be completed than traditional video News UK: Sees 75% higher click-through rate on vertical ads Forbes: 25% higher click-to-play on vertical video Facebook Research: Vertical video watched 75% of the time with the sound ON.(Horizontal video is watched 85% of the time with the sound OFF.) Vertical increases brand lift 79% of new vertical video consumers agreed that the format is more engaging, and said they would choose the vertical format in most cases. 65% of survey respondents said that brands using vertical video for their advertising are "more innovative. Research by Animaker of vertical vs horizontal video ads on Facebook showed vertical ads had 58% greater reach with a CPM 40% lower! No wonder Facebook uses vertical to promote itself, and encourages creatives to experiment with vertical video, as here: Get Creative with Vertical Video (Facebook 25/01/2018) Reference The power of vertical video to engage and grow a mobile audience can be clearly seen in the case of one of the world s greatest (and most traditional) media brands.

7 THE BBC GOES VERTICAL In late 2016, the BBC launched a new vertical video experience in its award-winning and internationally renowned News app. Users can swipe through a curated list of videos of the day to get an up-to-date summary of the day s news in an easy-to-consume and engaging format. All the videos are created specifically with smartphone users in mind: the videos are designed to be viewed vertically in full screen, and have subtitles. James Montgomery, Digital Development Director for BBC News said: Video remains the medium in which much of our best journalism is told, but the storytelling needs to be re-thought for mobile. The key to success is the combination of relevance and reward: videos that are not only great to watch, but which are offered in formats that are optimised for smartphones. He added: Being good at delivering news to mobiles is particularly important for younger audiences, for whom the smartphone is the primary, or possibly only, source of news. The impact of this vertical videos content is astonishing: 30% increase in video viewers 20% more videos watched per user Vertical video viewers visit three times more often References: Video Press release

8 MUSIC GOES VERTICAL Vertical is working for the music industry too. Spotify and others have begun working with vertical videos. A notable success recently was Camilla Cabello s release of her hit Havana with a vertical video. View Video 5. CONTENT CREATION FOR VERTICAL IS A CHALLENGE: The number of screens is skyrocketing; many channels require different formats, the context changes according to where and when content gets served. This is a challenge for marketers and content producers who have to decide how to allocate production budgets. Most video is still made for traditional channels TV etc. with the idea of repurposing for mobile screens. Only 14% say video creative is usually developed primarily for mobile platforms which is low compared to the importance of these screens. There are a number of players offering repurposing services, which can be efficient budget-wise, even if originally created content is the most effective way to utilize any screen shape.

9 6. VERTICAL VIDEO SOLUTIONS VERTICALIZATION MakeMeReach is an example of a business that can quickly verticalize your existing advertising creative assets for mobile (eg. transform them into vertical format.) View Video Genero uses a hybrid crowd approach to alter existing TVCs for mobile: Genero were briefed to adapt TV commercials for Pond into a range of videos optimised for mobile, for use across Facebook and Instagram. Creators pitched ideas on how to best adapt the existing videos into various narratives that would be impactful in the mobile environment. The POND'S team chose one of the ideas which reframed the footage and optimised the message. The commissioned creator delivered a suite of assets for use across Facebook and Instagram, including short videos, animated GIFs and slideshows.

10 ORIGNAL VERTICAL VIDEO CREATION More & more brand now recognize the superior value and impact of original vertical video content creation and are commissioning specialized production structures to partner with them to face the vertical digital challenge. Userfarm Unlike the tech-heavy top-down formats of AR and VR, vertical video is a grass-roots phenomenon. Traditional agencies and filmmakers have been suspicious of this new format, so it is not surprising that crowdsourced video approaches have pioneered 9:16 filmmaking. Nespresso for instance, teamed up with global video crowd Userfarm to run an annual global vertical film contest, now in its third edition. Now in its third year, this unique competition empowers filmmakers worldwide to tell a story with short (max three minutes) vertical videos. The prestigious project launches during the Berlinale film festival, and the winners are showcased at top festivals like Cannes and Tribeca. So far the project has produced more than 1000 high quality vertical videos, transforming 9:16 from an amateur format to a respected filmic art form. At the same time it has delivered for the client, aligning Nespresso closer to new film talent, engaging a younger, content-savvy audience, generating many millions of views and almost 100% positive sentiment. These remarkable short films have also proved the power of the vertical format for engaging, emotional storytelling. Here are some of the recent winners on the theme The Difference She Makes. Reference This type of original vertical video creation is gaining attention not only from the trade press, but also from sophisticated magazines like Vogue.

11 Numerous FMCG brands are now using video crowdsourcing to respond to their vertical video marketing needs In early 2017, the videomakers in the Userfarm crowd were asked to create shareable videos to communicate Sunny Delight as a cool and vital product. Of course, among the 81 videos produced there were vertical videos like this: View Video Even more traditional industries like auto manufacturing are testing vertical formats as a contemporary form of communication around their latest models. Audi for instance wanted original short videos (up to 20 seconds), to explore the Audi Q2 #untaggable messaging. The Userfarm crowd produced 75 videos for Audi, including many vertical films: View Video

12 VERTICAL NETWORKS Some production companies have also begun working extensively in vertical. Endemol Shine produces a number of mobile-format shows, including series for BBC 3, the all-digital BBC TV channel. Vertical Networks pioneered this sector. Created in 2015 by Elizabeth Murdoch. Vertical Networks is a content-creation studio based in Venice Beach. The studio produces mobile-first shows and channels, as well as advertising for brands. Reference Reference 8. CONCLUSION: YOU ARE ALREADY MAKING VIDEO FOR MOBILES. TIME TO MAKE IT PROPERLY. Let s face it, whether you like it or not, this rising trend is becoming irresistible. Brands, editors, commercials directors and news channels will have to adapt. The predominant role of mobile devices can t be ignored: By the end of 2018, 72% of online viewing will be on mobile. Over 50% of Youtube views are already mobile. Facebook has 1.75 billion mobile users seeing content vertically On mobile devices, the vertical format has taken over because: Of ergonomics! It s easier to hold a mobile device vertically and actually they are held upright 98% of the time. Vertical video fills the screen. Horizontal wastes visual real estate.

13 The positive impact of vertical video no longer needs to be demonstrated: According to Facebook vertical video ads drive increase in brand lift 75% of the time, vertical video watched with the SOUND ON whereas typically this is just 15%! The media offering for vertical format is becoming larger every day with the growth of mobile usage and the digitalisation of OOH. On the content side, there are now many solutions to create high quality original vertical video content that will spark conversation with your fan base. So, when will you start to think about your VERTICAL VIDEO STRATEGY?

14 SOURCES / USEFUL LINKS: https://www.iab.com/insights/2018-video-ad-spend-study/ https://www.facebook.com/business/news/get-creative-with-vertical-video https://forbusiness.snapchat.com/ad-products/ https://www.youtube.com/watch?reload=9&v=bhsqi9vdopy https://www.userfarm.com/en/vertical-video?p=1 Bill Viola Grand Palais https://youtu.be/ihoo3z01pau Nespresso Talent Platform https://www.nespresso.com/talents/int/en/home JCDecaux: OOH specialist http://www.jcdecaux.com/brands/trends-out-home http://www.jcdecaux.com/partners/rail https://www.animaker.com/vertical-video https://blog.animaker.com/11-video-marketing-trends-2017/ https://blog.animaker.com/vertical-video-facebook-ads-case-study/ https://www.theverge.com/2017/12/21/16806572/youtube-vertical-video-ios-display-properly-now-full-screen https://marketingland.com/facebook-now-officially-showcases-vertical-videos-in-mobile-news-feeds-189401