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PFMaker, the Advanced Interactive Video Tool

Periodic Reporting for period 1 - PFMaker (PFMaker, the Advanced Interactive Video Tool)

Reporting period: 2015-05-01 to 2015-08-31

People are accessing, consuming and sharing content in more varied ways than ever, and marketers have scores of new opportunities to understand, reach, and engage with consumers. But at the same time the ecosystem of technologies that supports online advertising has become so complicated and cumbersome that it actually makes it harder for advertisers to invest more money to market effectively, putting the industry’s growth at risk. Technology will only be able to deliver new alternatives if it creates greater process efficiencies, drives more profit, and enables deeper engagement with consumers. We are confident that these big shifts in the industry will result in relationships between brands and consumers that are more transparent and based on the exchange of real value. There has been a consumer revolution led by digital paradigm shift. However, the advertising industry has not yet been disrupted as much as needed.

Nowadays, online advertising is intrusive, boring and even bothering. According to IAB Spain and Zenith Optimedia, almost 92% of people abandon Pre-Roll ads with the option Skip-Ad, when this option is not shown, 15% of people close the entire video to avoid the ad. In-Video Ads do not work better, 15% of viewers close the image shown at bottom, and barely 3% click on that kind of ad.

In order to overcome these problems we have tested in a relevant environment a new interactive video format that increases user engagement. When users enjoy a PlayFilm interactive video they watch an audiovisual piece with hotspots that invite them to play. Anytime users choose to play, they voluntarily interrupt content and start interacting with a branded game that allows them to unlock relevant and exclusive extra contents or win interesting prizes. By means of this innovative format, marketing agencies get more and better impacts in a less intrusive way.

Now it is the best moment for interactive video, there are interactive screens available to everyone and online video consumption is growing exponentially, however, producing interactive video contents is still expensive and barely unprofitable, thus increasing the total production costs up to a 50%.

This new concept will revolutionize the advertising industry, since it turns the user into an active and key part of storytelling, thus being able to build a new creative and valuable layer around brands.

The purpose of this innovation project is to fast prototype and demonstrate a new tool and interactivity market ecosystem to create fully advanced interactive experiences in a cost-effective and profitable way. This tool will be named PFMaker and will reduce the time of production of an interactive video by 67% and its development costs by up to 81%. This tool will allow the quick creation of interactive videos with advanced user interactions such as 3D Graphics and Augmented Reality playing.

The feasibility study was divided in three different lines:

- To validate the market: We have setted up interviews with main stakeholder to collect their needs focusing on video advertising.

- To validate the user needs. We have carried out two user studies. The first one focused on interactive video consumers and the second one on video creators.

- IPR protection: We have carried out an IPR study in order to ensure we can operate with our technology in our target markets.
As was described in the grant agreement the work done has been organized in three main tasks:

1. Market Study
2. User Study
3. IPR Study

The first activity Market Study is divided in three main tasks:
1.1. Interactive video stakeholders identification
1.2. Field work with main stakeholders in spain and UK.
1.3. Analysis and conclusions.

The second activity User Study is divided in four main tasks:
2.1. Study design.
2.2. Consumer study.
2.3. Video creator user study.
2.4. Analysis and conclusions.

The third activity IPR Study is divided in two main tasks:
1.1. Priority Markets selection.
1.2. Freedom to operate Analysis.

The main conclusions obtained are:

• In general, after completing this market study we realised that digital advertising market is accessible for us and it’s right at the point to access it. There is demand, our potential clients want interactive video, agencies are ready and willing to offer and develop advanced interactivity. However, it is too expensive and complicated in terms of technological development. There are successful cases, good examples, but all of them are made ad hoc, and that way costs escalate. This is the exact point where PlayFilm needs to step in, offering that advanced interactivity at costs that are hard to conceive they are possible.
• But there are important barriers we need to tear down. There are fears and concerns around advanced interactivity and they are due to two main causes: the feel of economic risk and a considerable lack of knowledge and awareness. Interactivity needs to be advertised, disseminated, we need to educate into interactivity. We need the market to be flooded with successful campaigns based on advanced interactive video. And above all, we need to show advertisers (our clients’ clients) not only that advanced interactivity is now inexpensive but also that multiplies the return on investment. That’s the way to unlock a market that is eager of new business ways.
• The needs of our clients are crystal clear: make interactivity more affordable and quicker to produce. And we are able and ready to offer them the solution they are looking for.
• The interactivity catalogue is considered a must have in order to maximize creativity opportunities.
• Last, Digital advertising is growing rapidly year by year and soon will be leading the advertising market. In addition, video and mobile are playing a key role in digital advertising growth. It is the right time to catch the wave of Digital advertising. Mobile video is the future, and we need to make it also interactive.


• Interactive video shows a very high preference among users that have tried it (70%).
• This preference is higher among younger users (18-25).
• The most successful videos are the ones that show a higher engagement in their emotional profile.
• The worse rated videos are the ones with lower utility in their emotional profile.
• When creating an interactive experience, it is critical to put enough effort in explaining to the users the actions that they can perform.
• Even though the assessment of interactive video is not as high as expected the general preference of most users is interactive.
• We can obtain a very high amount of usability tips with few target professional users of PFMaker tool.
• It is important to produce good training materials for users.
• We have detected and priorized 30 improvement opportunities of the product.
• PFMaker is highly aligned with interactivity expectation of video editors.

It can be concluded that the method of generating interactive video of PFMaker has freedom to operate in European Union market but could lead for patent infringement in US market.
With this feasibility study we have validated the market demand, the user interest and the freedom to operate in our priority markets. This project aims to disrupt the advertisement market through a new technology that allows a faster and cost-effective way of creating interactive video.

The European Union Advertising sector has 268.000 companies, employs 1.140.000 people and generates a turnover of 157.000 Million euro. This project will have a huge impact in advertisement and audiovisual sectors creating new market opportunities and creating new interactive video professionals. We have developed the business model and a first exploitation plan. Following the plan we will increase direct employment in 100 people and direct income in 20 Million € in three years. We can estimate that the indirect employment produced in audiovisual and advertisement sectors will be of at least 600 people and a market impact of 100 Million €.

The impact for society will be a less annoying way of supporting audiovisual content funding. This result will lead to better free digital content with a enhanced advertisement experience.
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