Note: Effective with June 2009 data reporting, Nielsen has made several enhancements to the VideoCensus service, including a panel that is 8 times larger, more granular reporting and improved accuracy and representativeness. These enhancements provide the highest quality data to our clients and the marketplace. For some sites, trending of previously-reported data with current results may show percentage differences attributable to these product enhancements and should only be compared directionally.

VideoCensus Methodology and Metrics:
Nielsen Online’s VideoCensus combines patented panel and census research methodologies to provide an accurate count of viewing activity and engagement along with in-depth demographic reporting. Online video viewing is tracked according to video player, which can be used on site or embedded elsewhere on the Web. For example, if a “Saturday Night Live” clip from NBC.com is embedded on a personal blog, that video would be attributed to NBC because of the NBC video player.

A unique viewer is anyone who viewed a full episode, part of an episode or a program clip during the month. A stream is a program segment. VideoCensus measurement does not include video advertising.

SUMMARY: When is a phone not a phone? In the hands of children and tweens, today’s cell phones are primarily used as text messaging devices, cameras, gaming consoles, video viewers, MP3 players, and incidentally, as mobile phones via the speaker capability so their friends can chime in on the call. Parents are getting dialed in to the social media phenomenon and beginning to understand—and limit—how children use new media.

• This article draws from a keynote speech delivered last month at the Children’s Advertising Review Unit (CARU) annual conference.

Digital media is an enabling framework for brands, parents and educators—it’s on demand, interactive, sensing and connected. And social media adds expression and sharing capabilities. A vast menu of web and mobile tools has been developed to facilitate information sharing and commentary on the Web. Applications and outlets have kept pace as consumers rush to populate blogs, Twitter, YouTube, Facebook, forums, message boards and online communities.

In the marketing world, the buzz is all about consumer-generated media. Companies have discovered thatno paid-for communication campaign has the impact of missives penned by consumers grounded in relevant, first-hand experience. Their influence is immediate, highly viral and authentic, with an extremely long tail attributable to archived material.

Giving voice
What motivates people to go online and on the record with personal opinions and information? In part, it is the very human need to be heard and to connect with others. It is the desire to make a difference, to influence the world around us. It is the drive to evangelize on behalf of the things and the people we love. And it is the ongoing quest for authenticity in a world governed by image.

Mobile devices represent a major impetus behind the social media movement, driving part of the 250% audience increase for the year ending February 2009. Teens represented 19% of the 12.3 million active social networkers.

Childhood connections
To adults, cell phones are a communications device. To children, they are a lifeline. Consider that the average 13-17 year old sends more than 2,000 text messages per month. Compared with the total mobile Internet population, teens are much bigger consumers of social media, music, games, videos/movies and technology/science.

Parental use of advanced data services mirrors that of their tween kids. If their children text, then 80% of parents will text as well. Although following their kids’ lead on devices and media, parents still set limits. Six in ten forbid downloads onto their children’s phone for financial and security reasons.

TV times
Even as social media dominates press coverage, TV viewing is on the rise among children and teens. Younger children age 2–11 spend almost 102 hours per month watching traditional TV at home—a 17% increase from May of 2008 to the second quarter of 2009. The increasingly popular time-shifted TV option averaged 5:26 hours during the timeframe, a 26% year-over-year increase.

Traditional TV viewing expanded at a slower rate (13.5%) among teenagers than among younger kids—to 101+ hours, and teen time-shifted viewing showed a 35% growth rate with 4:54 hours of watching time. Interestingly, Internet use was down (-15%), to 10:22 hours per month. The biggest media gainer was video viewing on the Internet, where Hulu and YouTube helped spike time by 66% for a total 2:41 viewing hours. Teens deployed mobile phones to catch videos, spending 6:30 hours with mobile video streams—a 20% year-over-year increase.

Young enough
The debate rages on: what is the right age to give a child their own phone? The answer seems to be younger every year, and if you don’t give them a phone, they’ll just borrow one. In 2008, the average age when kids started to borrow a cell phone was 8.6 years; in 2009, it was down to just 8 years old. As to ownership, in 2008, a child typically was given a mobile phone at age 10.1 years; by 2009, it was down to 9.7 years old.

The next time you hear “everybody’s got one”, the fact is, that classic ploy may be true. By age 10, roughly half of children own a mobile phone. By age 11, six in ten own a mobile phone. By age 12, fully three-fourths of all children have their own mobile phone.

Game on
How do they use phones? Two-thirds of tween mobile phone owners took pictures with their camera phones in the last year. Half spent time playing the pre-installed games. Four in ten activated the speakerphone feature. Twenty-eight percent filmed a video clip, and 24% listened to the MP3 capability.

More than half of the youngest (age 8) mobile phone owners used their cell to send text messages in the last 12 months. That figure soared to 81% for 12-year-old mobile users. The vast majority of text messages were directed to friends and family (90%). All other cell phone uses tracked in the single digits, such as voting on TV shows (8%), buying a ringtone or music (9%), buying wallpaper or a screensaver (4%), buying a game (5%), responding to an ad (5%) or looking up their horoscope (4%).

Parental controls
Surprisingly, given all the publicity about cyber stalking and cyber bullies, more than half of parents do not apply any parental controls offered by service providers to their children’s cell phone usage—although the use of these paid-for controls is increasing. Among those who do assert these built-in controls, 20% limit the number of calls, texts or instant messages, followed by download limits (17%), talk time or voice minute allocations (16%), mobile website access limits (15%), locator services and restricted in/outgoing number access (13% each), time of day restrictions (11%), and alerts to unauthorized texts, IMs or callers (6% each).

While the use of paid-for controls may not be high, just about all parents restrict how tweens use their phone and six in ten prohibit downloads that incur charges. Not taking the phone to the dinner table and maintaining certain grades are other rules put in place by 42% and 40% of parents, respectively.

Coming challenges
From a media perspective, choice leads to fragmentation, and ultimately, divided consumer attention and diminished import for a single medium. Even as social media gains popularity among the general public and marketers, there is no accepted benchmark or measure of effectiveness, making it difficult to forecast or predict the impact of a campaign.

A particular challenge for companies wanting to incorporate social media into their communications arsenal is the blurred line between private and public information, given the highly personal nature of many postings. Advertising models are still in flux, exploring boundaries of ethics, taste and transparency.

Untapped potential
Social media presents a world of new possibilities. Not a better mousetrap, but a new operating DNA for interacting with consumers. It can serve as an early radar or warning system, alerting to trouble spots and yielding fresh insights.

For parents, old rules still govern new media. They will need to stay engaged, enrolled and involved in their children’s lives. The motto “trust but verify” applies. For advertisers, old rules also are still in force. The need for transparency and trustworthiness becomes amplified on new media circuits. Ultimately, the nature of new media will prove its value, as all parties engage in an interactive, ongoing, mutually beneficial conversation. Social media is organic and ever-evolving, constantly presenting new opportunities and challenges.

Kid Stuff
For more on children and their media habits, check back next month. We’ll be exploring television, DVD, DVR, VCR, on demand, online streaming and gaming preferences for children ages 2–11. The silver screen represents marketing gold!

Note: Effective with June 2009 data reporting, Nielsen has made several enhancements to the VideoCensus service, including a panel that is 8 times larger, more granular reporting and improved accuracy and representativeness. These enhancements provide the highest quality data to our clients and the marketplace. For some sites, trending of previously-reported data with current results may show percentage differences attributable to these product enhancements and should only be compared directionally.

VideoCensus Methodology and Metrics:
Nielsen Online’s VideoCensus combines patented panel and census research methodologies to provide an accurate count of viewing activity and engagement along with in-depth demographic reporting. Online video viewing is tracked according to video player, which can be used on site or embedded elsewhere on the Web. For example, if a “Saturday Night Live” clip from NBC.com is embedded on a personal blog, that video would be attributed to NBC because of the NBC video player.

A unique viewer is anyone who viewed a full episode, part of an episode or a program clip during the month. A stream is a program segment. VideoCensus measurement does not include video advertising.

While it’s great news and great fun for the happy couple, the video also seems to have had a halo effect for troubled singer Chris Brown, whose February assault on then girlfriend Rihanna cloaked the singer in months of negative buzz. (Brown plead guilty and received five years probation and must serve 180 hours of community labor.) The wedding video now has a direct link to buy “Forever,” which, despite being released last year, is now in the iTunes top 10. According to Soundscan “Forever” digital downloads went from under 3,000 (week ending 7/19) to 50,000 (week ending 7/26) and sales of Brown’s album “Exclusive” are up %130 in the last week.

Brown’s own attempt at a viral video, a recently released apology video for the Rihanna “incident” which he calls “inexcusable,” has been viewed more than 2 million times. As BlogPulse shows, July buzz about Brown and “Forever” reach almost as high as blog discussion that occurred around the time of the assault.

Looking at our newly expanded panel that includes more than 30,000 sites, we have found that short tail sites (those with a greater than 1 percent reach) remain the most engaging brands online.

It seems that the differentiation between the long tail and short tail is important. Long tail sites tend to have lower engagement levels than short tail sites.

However, it would be reasonable to ask: “well, since not all short tail sites are the same, what happens to those numbers if you remove portals and large social networks?” The answer is interesting. When we look at the data in relation to the highest traffic sites on the Web (e.g., Google, Yahoo!, YouTube, MySpace, Wikipedia, Apple and Facebook) here’s what happens:

Long tail sites tend to have lower engagement levels than short tail sites; however, the largest jump isn’t between long tail and short tail, it is really between everyone and the top 10 sites.

What does this amount to? As much as anyone thinks the future is in the long tail, it’s just not the case-at least not yet. In fact, consumers feel more comfortable on large, mass media sites. We know the Internet is changing. We know there are more blogs, boards, tweets and social networks than ever before. But what’s also clear is that while the Internet itself is fragmenting (like all other media), people continue to spend their time on the sites that offer them the most options and functionality.

In the spring of 2008, Dave Carroll and his band, the Sons of Maxwell, were traveling to Nebraska from Chicago on United Airlines. What should have been a routine journey turned into yet another cautionary tale for customer service and the Internet.

United’s baggage handlers damaged Dave’s high-end Taylor guitar. After 9 months of attempts to navigate customer service with little result, Carroll promised the individual who denied his claim that he would produce three songs and videos about his experience. Last Monday, he made good on his word by posting the first song to YouTube. The next two are already in production.

Within a week, Carroll’s video received a staggering 3 million (and counting) views on YouTube and has received coverage in major publications like USA Today, Newsweek, The Wall Street Journal and on well-trafficked Web sites including The Consumerist and Boing Boing.

To make matters more interesting, the owner of Taylor Guitars also jumped on this non-stop flight to free publicity, posting a video of his own.

What exactly made the video and issue take off? To understand, let’s deconstruct why this video is so compelling and how consumers are increasingly raising the stakes in how they shape brand reputation online:

Torches and pitchforks

This video effectively tapped into the simmering indignation many people feel towards the airline industry. The lesson for brand managers is if your brand is already struggling with negative consumer sentiment you are particularly vulnerable to vigilante consumer attacks. You need lightning-fast procedures to protect your brand.

Laugh and the world laughs with you

Never underestimate the power of great parody and entertainment. Brand managers should note that a good sense of humor provides significant lift in the world of social media.

I reject your reality and I submit my professionally produced version

The United example goes above and beyond the typical “candid camera” approach usually found on YouTube. It’s memorable and well produced, with staging, editing, costumes and credits. Low barriers-of-entry to technology and growing audiences enable and inspire consumers to up the production quality of the content they create.

Dead in the cross hairs

Intentional or not, the video effortlessly targets several demographic segments eager to embrace social media. Nielsen Research shows that travelers, musicians, hipsters, and marketers are often the best “carriers,” helping to spread CGM. Brands should make an effort to learn which of their customers use social media.

Flawless distribution

There is more to success than top-notch production values or posting to YouTube. The creators of this video tagged it well, enabled sharing and effectively seeded the conversation on Twitter. Within a few hours, the video was picked up by popular high-traffic Web sites and then shot thought the stratosphere by traditional media – all this on a news day that was monopolized by the memorial service for Michael Jackson.

How can United Airlines clean up the mess?

Go to the source

Despite the public rebuff by Dave Carroll in the response video below, United should continue to reach out to address his concerns directly. In an effort to make amends and at Carroll’s request, United announced via Twitter that it had made a $3,000 to the Thelonious Monk Institute of Jazz. When defusing cause-driven outrage, it’s important for the public to believe that United is sincere in any related efforts.

Search means forever

This video is now the third Google search result for the query “United Airlines.” and iIt will likely haunt the company for a long time to come. United will need to produce a tremendous amount of positive company content, both written and video, to eventually push Carroll’s off the first page of Google search results. They might also consider utilizing paid search to drive travelers customers to an apology video like the ones posted by some of their competitors others for in their past problems.

Jet Blue Apology

Past United Apology

Listen and learn

This exchange will serve as a case study and United needs to continue to work to give it a happier ending.

Since there is currently a tremendous volume of conversation occurring about the United brand, tThe company should take this opportunity to carefully listen to the tremendous amount of online chatter toand learn about its brand detractors and supporters. Where do these customers post? How do they talk about United? How do they discuss airlines in general? What specifically do they want in an airline? Are there new and unexpected brand engagement opportunities?

Straighten up and fly right

Many companies revisit how they handle consumer complaints after an experience like this. Social media will only continue to grow in reach and power, especially and when connected-customers make threats. Companies need to take them seriously and revisit how they handle consumer service..

As fans discussed the emotional and musical details of the memorial, the media coverage and the integration between television and the internet was also a major topic. Nearly 15% of all online discussions about Jackson referenced either a broadcast or social network.

CNN which teamed up with Facebook on streaming coverage was named in 5% of all online conversations. Also on the TV network side, BET came in 2nd with 1.9%, ABC with 1.7%, MTV with 1.44%, NBC/MSNBC with 1.43%, Fox with 1.38% and CBS with 1.0%. Among social networks, Twitter was the most discussed social networking site with 2.4%. Facebook was mentioned in 2% of the conversations, followed by Youtube (1.9%) Myspace (0.6%) and Hulu (0.3%) which streamed FOX News coverage.

“While events like the Jackson memorial, or the Obama inauguration are unique, the way consumers are multitasking between media is quickly becoming the norm,” says Charles Buchwalter, Senior Vice President, Research & Analytics, Nielsen Online. “Even as recently as five years ago, the only choice for community was to gather around the TV screen with co-workers or friends for major events. Now, there are three screens to choose from and, as our research shows, online activity actually reinforces TV viewing. So when outlets like CNN integrate their coverage with Facebook or MSNBC leans heavily on Twitter it demonstrates the public’s growing integrated use of TV, the web, and mobile for getting, and at times reporting, the news.”

Twitter Doesn’t Fail Tweeters

Terms and tags such as #MJ and #Michael Jackson dominated the top trends on Twitter.com yesterday, July 7, 2009. Interestingly, even the misspelling of the King of Pop’s first name as “micheal” also topped trends throughout the day.

Users watch the events of the day unfold on TV and online, often “tweeting” about the coverage offered by various media outlets. Since many were limited to watching coverage online while at work, Twitter featured frequent links and recommendations for live video feeds, most commonly CNN’s live feed with Facebook integration, followed by CBS News/Ustream, MSN, and MSNBC.

During the memorial service, recommendations and links to video stream slowed down, and viewers began to focus more of their “tweets” on the performances at the service, only distracted by news that social media sites Facebook.com and Twitter.com were out of capacity and/or had crashed. However, CNN.com did continue to be the most recommended live feed during programming. Following programming, recommendations shifted to video recordings posted on YouTube.com.

Findings from an  Internet snapshot from June 18, 2009:

• Wikipedia emerges within the top two search results for 4/5 of the leading topics.
• At least one social media source emerges within the top 10 search results for every term. In most cases, the social media sites emerge directly above a traditional, major news source, such as WSJ.com.

In a follow-up snapshot on June 24, a marked shift takes place, reaffirming the Iran election story as a watershed moment for online news and communications:

• YouTube emerges within the top 10 search results for all search terms in the second week.
• Wikipedia remains within the top three search results in the second week for four of the five search terms.
• Twitter emerges within the top 20 search results in week two – specifically, the Twitter results for Moussavi and Ahmadinejad. Of course, traditional news sources such as the BBC (and CNN, in week two) bubble to the top of search results, as do general information sites such as Yahoo.com and Infoplease.com.

What this means is that general human curiosity is driving people to look to all available sources for information.  The conflict in Iran presenting the latest and perhaps most sophisticated example of how the world has changed for journalists, the media and increasingly active media consumers alike.

So what else do the search results signify? Is consumer generated media (news by the people, for the people) eclipsing traditional sources? Are people more frequently linking to Wikipedia than the New York Times for information about Iran? What does it mean that Mashable is among the top three search results for “Iran Election?” What role does Twitter play? As major events break (Iran, Health Care, Michael Jackson) we will continue to dive into the data and present answers to these questions, both through our own analysis and through feedback and opinions of others. After all, if weve learned anything in the last few weeks, it’s that the power is in the hands of the people… What do you think?

Quarter-over-Quarter Growth in Online Display Ad Spend by U.S. Consumer Goods Industry

“While direct response advertising has been very successful on the Internet, with categories like finance and travel devoting a significant portion of their budget to online advertising, on-line advertising will not continue to grow as rapidly without major brands beginning to devote larger portions of their ad budgets to the Web.  We are seeing some of that happen now with Consumer Packaged Goods companies, which are growing their budgets despite a down economy,” said David Wiesenfeld, vice president, online marketing solutions at Nielsen.

YouTube was the top entertainment web site for consumer product companies in 2009, with 637.7 million display ad impressions and a 24 percent share of all advertising in the genre.  AOL.com and Oprah.com rounded out the top three.  YouTube was also the fastest growing site among the top 10, increasing 572 percent year-over-year.

Read the full release regarding consumer product online display ads here.

Overall Online Video Usage (U.S.)

 Note: Includes progressive downloads and excludes video advertising. 

YouTube was far and away the top online destination by video streams, with more than 6 billion total streams during the month, and more than 95 million unique viewers. Hulu, Yahoo!, Fox Interactive Media and ABC.com rounded out the top five.