IBM Cloud Video - leaderboard - 12-8-16

Analysis for 'Research'

  • Influence of TV Ads on Video Ad Targeting Increased During 2016

    Here’s a great data point highlighting how TV and online video advertising are converging: new data from Videology revealed that in Q4 ’16, 23% of online video ad campaigns utilized TV viewing segments to help target audiences, more than double the 11% rate in Q1 ’16, though slightly down from 27% in Q3 ’16. Once again, the advertiser’s TV schedule was the top TV segment used.

    As always, demo (used in 100% of campaigns), geo (85%) and behavioral (54%) were the most used data types for targeting video ads, but the increasing use of TV segments shows how advertisers are looking at video ads more holistically, converging them with TV ads to extend the value and ROI of their overall ad spending.

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  • Research: 30% of Millennials Are Cord-Nevers or Cord-Cutters

    New research from GfK MRI reveals that 30% of US millennials (18-34 year-olds) are cord-nevers or cord-cutters (dubbed "cordless"), almost double the rate (16%) of Boomers, the next generation up. In all, millennials account for 43% of the cord-never population.

    No surprise, cordless millennials are focused on online video alternatives, saying they spend 65% of their time using these services. Conversely, Boomers said they spend just 36% of their time with online video services and 56% with linear TV. Millennials’ favorite services included YouTube, Netflix, Hulu and Amazon, with others including Crunchyroll, Twitch and Adult Swim also scoring highly.

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  • Nearly One-Third of U.S. Consumers Watch Pirated Video

    According to a new survey from Irdeto, 32% of U.S. consumers watch pirated video content. Of this group, 24% are most interested in TV shows, while another 24% are most interested in movies currently in theaters, with another 18% interested in movies that are already on DVD and Blu-ray. Sports and SVOD content were further down the list.

    Worse, when respondents were told that piracy results in studios losing money, in turn reducing their ability to invest in new content, 39% said this had no impact on how much pirated video they watch. And just 19% said this financial damage would cause them to stop watching pirated video. It’s also worth noting that 69% of respondents said they knew consuming pirated video is illegal.

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  • Research: Only 13% of SVOD Subscribers Take More Than Two Services

    Here’s more evidence that most smaller SVOD services are fighting for the attention of a tiny group of prospective subscribers. New research from Limelight Networks indicates that just 13% of SVOD subscribers in the U.S. and U.K. take more than 2 services. Of all respondents, 60% subscribe to SVOD, broken down as follows: 33% taking 1 service, 19% taking 2 services, and approximately 8% taking 3 or more services (which translates to 13% of overall SVOD subscribers).

    Since Netflix, Amazon and Hulu have by far the biggest market share, they undoubtedly are among the first 2-3 services most people subscribe to. As a result, all other SVOD services, which in the U.S. exceeds 100, are vying for attention from the sliver of people who go beyond the big 3 to subscribe to others. The data highlights how difficult it’s going to be for the dozens of smaller SVOD services to achieve scale.

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  • Research: 46% of People Who Watched a Branded Video on Social Media Then Made a Purchase

    Here’s an eye-opening data point: according to new research from Brightcove, 46% of respondents said they made a purchase as a result of watching a branded video on social media (with 53% of U.S. respondents doing so). And another 32% of respondents said they considered doing so. The data shows the increasing importance of social media as an influential platform for marketers and the power of branded videos - as opposed to conventional 15 or 30-second ads - as a key purchase motivator.

    With marketers increasingly concerned about ROI on their spending and consequently shifting dollars into digital media, the research only magnifies the challenge TV networks face in retaining advertisers’ allegiance.

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  • FreeWheel VMR: Desktop Declines to 34% of Ad Views as Entertainment Focus Grows

    FreeWheel has released its Q2 2016 Video Monetization Report, once again sharing valuable insights on premium video viewing and monetization. Continuing its precipitous drop from prior quarters, desktop’s share of video ad viewing declined to 34%, its lowest level yet in the U.S. That was down from over 62% one year ago, in Q2 ’15 and 90% just 3 years ago, in Q2 ’13.

    While desktop’s number of ad views has stayed steady, the rapid growth of mobile and connected devices has exploded, up 60% in each of the past 2 quarters alone. In Europe, desktop viewing is stronger than in the U.S., with a 43% share, though that’s down from 66% a year ago.

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  • Ooyala: Mobile Now Accounts for Over Half of Video Views, Up 10x in 4 Years

    According to Ooyala’s newly released Q2 ’16 Global Video Index, mobile viewing now accounts for 50.6% of all video views, up a whopping 10x from the 5% viewing share on mobile in Q2 ’12. Ooyala has been tracking mobile viewing for years and this is the first time it has crossed the 50% mark. One year ago, in Q2 ’15, mobile was at 44% viewing share and two years ago, in Q2 ’14, it was just over 25%.

    Ooyala attributed the strong growth to the popularity of smartphones and robust WiFi, especially globally. 64% of American adults now own a smartphone and 90% of millennials reported they’re almost never without them. 75% of viewers age 18-29 watch video on their smartphone.

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  • New Research Highlights Major Challenges Skinny Bundles Face

    New research from consulting firm Altman Vilandrie & Company highlights the major challenges that current and pending “skinny bundles” face. Skinny bundles - which are scaled down, customized and less expensive groups of TV networks - have become a hot industry topic, and are perceived as valuable in pulling cord-cutters and cord-nevers back into the pay-TV ecosystem.

    But AV&Co.’s 7th annual consumer video survey, which is the most extensive research that I’ve seen yet into the prospects for skinny bundles, paints a picture of how narrow the opportunity may in fact be. VideoNuze readers know that I’ve been very skeptical of skinny bundles, whether from Sling TV, PlayStation Vue or soon Hulu and DirecTV Now. The AV&Co. research largely confirms my concerns (see here and here).

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  • Research: "Orange is the New Black" Is Netflix's Most Popular Original in 15 of 16 Markets

    7Park Data has released an analysis of OTT viewership, finding among other things, that “Orange is the New Black” was Netflix’s most popular show in June in 15 of the 16 countries analyzed (in Ecuador OITNB was fourth, with “Full House” in the top spot). OITNB had its season 4 premier on June 16th, driving a 544% viewership increase from May to June.

    Although Netflix released 12 of its originals’ season premieres in June, OITNB was the only one among the top 20 most-viewed. Following OITNB globally was “How I Met Your Mother,” “Pretty Little Liars,” “Supernatural” and “Family Guy.” In the U.S., specifically, OITNB was followed by “Family Guy,” “The Office,” “American Dad!” and “Friends.”

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  • Research: Connected TV Viewing Among 18-49 Year-Olds Has Quadrupled in Past 2 Years

    More evidence today of connected TVs’ ascendance as a preferred viewing platform: Pivotal Research’s Brian Wieser released a new report revealing that 8.5% of all TV usage in July 2016 by 18-49 year-olds was through connected TVs (e.g. Roku, Apple TV and Chromecast). That was up from 4.9% in July 2015 and just 1.9% in July 2014 (Wieser didn’t share data prior to then, but it’s no doubt minimal).

    Wieser said the share gain by connected TVs was approximately equal to the loss in viewing share of ad-supported cable and English language broadcast TV networks. For all households, connected TVs had a 5.5% TV viewing share, which was up from 3.3% a year ago.

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  • Research: YouTube and Facebook Are In A Dead Heat For Advertisers' Interest

    Facebook’s push into video appears to be paying off as a new survey of 300 advertisers and agencies released by Trusted Media Brands this morning shows that social platforms and video platforms are virtually tied as the most important partners for video ad campaigns. Overall, YouTube and other video platforms are viewed as most important by 59% of respondents, with Facebook and other social platforms viewed as most important by 56%.

    However, among advertisers, 65% favored social, with 55% favoring video platforms. The numbers were reversed for agencies, where 62% favored video platforms and 51% favored social platforms. It’s also worth noting that distinctions can be murky as YouTube itself could be considered a social platform given the level of sharing, commenting and following that occurs there.

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  • Videology Sees 74% Quarter-Over-Quarter Spending Increase on Data-Infused Linear TV Ads

    Videology released its U.S. Video Market At-A-Glance report for Q2 ’16, revealing, among other things, that ad spending by clients on data-infused linear TV campaigns grew by 74% from Q1 ’16 to Q2 ’16. That compared with a 50% increase Videology experienced from Q4 ’15 to Q1 ’16.  Videology noted that traditional TV ad buying continues going strong, but that the quarterly acceleration is evidence of the market becoming more sophisticated about pursuing specific audiences.

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  • Research: Over 50% of Publishers Have Run Video Campaigns on Facebook vs. 31% on YouTube

    Facebook is pouring lots of resources into video and according to a new report published by ad tech provider Mixpo this morning, the strategy appears to be bearing fruit. In its “State of Digital Advertising for Publishers” report, based on a survey and interviews with 263 digital publishing and advertising executives, Mixpo found that 50.2% of respondents had run video campaigns on Facebook, compared to 31.1% on YouTube. Twitter followed with 17%, then Instagram with 13.2% and all other social platforms were in single digits.

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  • Three-quarters of Amazon Prime Members Are Watching Video Too

    Three-quarters of Amazon Prime members are watching the service’s video offerings, according to new survey data released by IBM Cloud Video. 61% of Prime members surveyed said they signed up for the service for the shopping benefits, but also watch the video, while another 14% said they signed up specifically for the video. Just 7% of members surveyed said they didn’t know about the video offerings, with another 18% saying they were aware, but didn’t watch.

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  • Pixability Research Highlights YouTube’s Growing Role in Auto Industry

    Online video and YouTube specifically are playing big roles in the auto industry for prospective buyers and enthusiasts, according to new research from video ad tech provider Pixability. The company found that auto-related video views on YouTube increased 42% from 2014 to 2015. There are currently 244K auto-related channels on YouTube with 3.5 million videos that have driven 73 billion views. Searches for “car reviews” specifically on YouTube have outpaced the same searches on Google itself over the past 5 years.

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  • Magid Research Shows Continued Growth in Connected TV and Mobile Video Usage

    The use of connected TVs and mobile video continues to increase, particularly among younger audiences, according to new data from Frank N. Magid Associates.

    Connected TVs were used by 74% of respondents vs. 59% in 2015 Magid research. Video game consoles continued to have the highest share at 33% (up from 30% in 2015), but the biggest increases were recorded by Internet streaming devices (31%, up from 20% in 2015) and Smart TVs (26%, up from 16% in 2015). 42% of respondents said they now have a Smart TV, up from 25% in 2015 and just 17% in 2013 as falling prices have steadily fueled purchases.

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  • Cisco VNI: Video Will Account for 85% of North American Internet Traffic in 2020

    Cisco has released the 11th edition of its Visual Networking Index (VNI), forecasting that video will account for 85% of North American Internet traffic by 2020, the highest of any geographic area. Video traffic in North America will grow at a compound annual rate of 21%.

    Globally, video-related traffic will account for 82% of Internet data, up from 70% in 2015. In a briefing, Thomas Barnett, who oversees the VNI, characterized video as the “king of all content.” In fact, video dwarfs every other Internet application, with the second biggest - web/data usage - representing just 14.4% of traffic in 2020, a fraction of video’s 82%.

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  • SVOD Services May Be Hitting Subscribers’ Limit on Willingness to Pay

    New research from GfK shows that SVOD services may be hitting subscribers’ limit on willingness to pay, in turn crimping the potential for future rate increases. GfK found the average willingness to pay was $10.82/month for Netflix, $9.10/month for Amazon, $9.96/month for Hulu ad-free and $5.01 for Hulu ad-supported.

    Adding to the pricing pressure, GfK also found that cost was the most important attribute in picking an SVOD service, cited by 75% of respondents. The second most cited attribute was “availability of specific programs” (69%) followed by “availability of new movies” (68%).

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  • IAB: Ad Spending on Original Online Video Up 114% in Past 2 Years

    New IAB research indicates that ad spending on original online video is up 114% in the past 2 years. The 360 advertiser and agency executive respondents said that their average original online video ad spending has increased from $2.1 million in 2014 to $4.5 million in 2016. Telecom is the vertical with the highest average spending in 2016 ($6.7 million), followed by Health and Beauty ($6.4 million).

    The research revealed that more than a third of advertisers’ online video budgets and 38% of their original video budgets will be allocated at the NewFronts, underscoring why online and established companies continue to invest in their presentations. 8 in 10 respondents (including both TV buyers and digital buyers) said that they increased their original online budgets due to NewFronts attendance.

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  • Videology: TV Data Gains As Targeting Source For Online Video Ad Campaigns

    Late last week Videology shared Q1 ’16 data from its platform, showing the continued convergence between TV and online video advertising. Videology found that 11% of video campaigns run through its platform used TV data segments to help target online video campaigns. As in the past, the most-used segment was current TV ad schedules, followed by sports viewers and competitors’ TV schedules.

    The use of TV audience data has been on an upswing over the past year plus according to Videology. In Q4 ’15, Videology reported that video campaigns using TV audience data had increased by 114% year-over-year. No doubt this was off a very small base as the whole concept of using TV viewing data is still relatively early stage.

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