Akamai - leaderboard - 9-1-17

Analysis for 'Research'

  • Big Generational Divide Over Pay-TV Subscriptions

    Last Wednesday I shared research highlights from Adobe and Limelight showing how millennials and younger audiences are shifting their viewership to online sources. Later that day I noticed new data from Pew Research that adds to the theme and clarifies the big generational divide that is opening up over pay-TV subscriptions.

    According to Pew, 61% of 18-29 year-old Americans it surveyed say that streaming services are the primary way they watch TV, vs. 31% cite pay-TV and 5% cite a digital antenna. 18-29 year-olds are the only age group where streaming surpasses pay-TV. Even one age group up, 30-49 year-olds still favor pay-TV over streaming, 52% to 37%. For older Americans, it’s even more skewed: for 50-64 year-olds, it’s 70% to 10% and for 65+ year-olds, it’s 84% to 5%. Overall, pay-TV is the primary way to watch TV for 59% of Americans, compared to 28% for streaming and 9% antenna.

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  • Research: Video Ad Completion Rates, Viewability and Time Spent Are All Up

    Video ad tech provider Extreme Reach has released its inaugural Benchmark Report for video advertising for Q2 ’17, finding, among other things, that video ad completion rates, viewability and time spent have all increased over the past year. For everyone in the industry, these numbers are encouraging signs that video ads are maturing and resonating with audiences, which will in turn help drive more spending.

    Key highlights of the new report include:

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  • U.S. SVOD Adoption Up to 64% of Homes, With 29% Streaming Daily

    U.S. adoption of Netflix, Amazon Prime and/or Hulu is up to 64% of homes, an increase from 47% in 2014, according to Leichtman Research Group. Of those who have one of these SVOD services, 51% now have more than one of them, up from 35% in 2014.

    On our podcast last week, Colin and I talked about how the number of people taking multiple SVOD services has become a central trend in the industry and is helping spur growth for all providers. Both Amazon’s Jeff Bezos and Netflix’s Reed Hastings have insisted over the years that people will take multiple services, and that appears to now becoming reality.

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  • Videology: 25% of Clients' Video Campaign Impressions Now Using First-Party Data

    Videology has released its latest Knowledge Lab research report which is focused on first-party data and how it is being used to help target video ads.  Among the highlights of the report are that 25% of video campaign impressions Videology now serves use first-party targeting. Overall, the percentage of video campaigns using first-party data has increased from 5% in 2015 to 11% in the first half of 2017.

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  • Scientific Study Reveals Impact of Streaming Video Quality

    It goes without saying that the quality of any consumer experience will directly affect the satisfaction derived from it. Video is no different; as has been shown in numerous studies over the years, whenever the streaming quality is diminished, so too is the viewer’s satisfaction.

    But new research from Akamai, conducted by Sensum, which used advanced biometric measurement methods, has revealed the extent to which lower quality streaming impacts viewers’ experiences and perhaps more importantly, what the business consequences of this are. Admittedly, the research is a bit geeky, but it’s also quite eye-opening and valuable for anyone building video products and services.

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  • Cisco: Live Video to Increase 15x to 13% of All Video Traffic By 2021

    Cisco has released the latest version of its Visual Networking Index, forecasting among other things, that live video will increase 15x over the next 5 years to reach 13% of all global Internet video traffic by 2021. Cisco is forecasting video will account for 82% of global Internet traffic, in line with prior forecasts and far surpassing any other application type.

    Cisco attributed the growth in live to “streaming of TV apps and personal live streaming on social networks.” Facebook Live has continued to grow in popularity, as has streaming live sports and events by various TV networks and rights-holders. As an example, the Ariana Grande benefit concert on Sunday drew more than 76 million views on Facebook Live.

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  • Akamai: Global Average Connection Speed Up 15% In Q1 ’17 vs. Q1 ’16

    Broadband connections keep getting better, enabling video and other high-bandwidth applications, according to Akamai’s Q1 ’17 State of the Internet Report. Global average connection speed was up 15% vs. a year ago, to 7.2 mbps, with 96 of the 149 countries/regions that Akamai tracks seeing an increase.

    Perennial leader South Korea had the fastest connection speed, at 28.6 mbps, followed by Norway (23.5 mbps), Sweden (22.5 mbps) and Hong Kong (21.9 mbps). All of the top 10 countries has an increase vs. last year’s Q1 except South Korea, with dropped modestly. The U.S. broke into the top 10 in the number 10 position at 18.7 mbps, up 22% vs. a year ago, the biggest change among the group. A total of 25 countries/regions had an average speed of at least 15 mbps, up from 23 in Q4 ’16.

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  • Research Finds Sweet Spot of Video Ads’ Impact on Brand Metrics

    Online video advertising is still relatively new, so understanding its exact impact on critical brand metrics is not yet entirely clear. To better understand the correlations between frequency and impact, YuMe recently conducted a study using Kantar Milward Brown’s MarketNorms data and select video ad campaigns that ran in Q1 2017.  

    Not so surprisingly, at a high level, YuMe found that as viewers experienced more video ad exposures, all brand metrics improved. These metrics include aided awareness, online ad awareness, message association, brand favorability and purchase intent.

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  • 83% of Ad Buyers Expect to Increase Online Video Spending in 2017

    With the NewFronts kicking off next week, there’s more evidence that ad buyers are looking to shift spending to online video. AOL has released research indicating that 83% of ad buyers surveyed are planning to increase their video spending in 2017, making it their number one choice. Social was second with 81%, followed by display (79%), search (77%), OTT/Connected TV (72%) and native/content marketing (72%).

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  • Parks: Living Room OTT Use Soars in Past 7 Years

    Here’s one measure of how popular watching online video in the living room has become: according to new research from Parks, which was presented at NABShow, among broadband households, over 25% of viewing done on TV was from online sources, up from 10% in 2010. No surprise, linear broadcast TV saw the biggest decline over that period, dropping from 62% of TV time to 41% of time.

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  • Research: Over Half of Pay-TV Subscribers Used TV Everywhere in Past 6 Months

    TV Everywhere (TVE) continues to gain adoption, with research released late last week by Hub Entertainment Research and industry trade group CTAM revealing that 56% of pay-TV subscribers watched TVE content in the past 6 months with 51% saying they watched in the past month. According to CTAM, all of the top pay-TV operators, 400 smaller independent cable operators and 100+ networks now deliver TVE content.

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  • Research: Majority of Ad Buyers Expect Programmatic Will Account for Over Half of TV Ads in 3-5 Years

    Videology has released new research showing strong enthusiasm for data-enabled TV ads among agencies and advertisers. According to a study conducted by Advertiser Perceptions for Videology, 64% of respondents believe that within 3-5 years, more than half of total TV buying will be programmatic or “advanced TV.”  For buyers already using advanced TV, 57% are planning to increase their budgets this year.

    The survey defined programmatic as high-indexing linear TV that uses advanced data to define a strategic consumer target (“data-enabled TV”) and TV advertising delivered at the household level (“addressable TV”).

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  • Research: Pre-Roll Remains Best Performing Video Ad Format

    Pre-rolls remain the workhorse of video advertising, outperforming other formats across metrics including recall, engagement and relevance. That’s according to research from IPG Media Lab and YuMe which was released this morning and compared the performance of pre-roll, mid-roll, outstream and social video formats across mobile and desktop.

    IPG found that just 17% of respondents agreed that pre-rolls interrupted content on desktop vs. 46% for outstream and 53% for mid-roll. The same pattern was true in mobile, with 17% of respondents agreeing that pre-rolls interrupted content compared with 60% for outstream and 72% for mid-roll.

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  • FreeWheel: Live Viewing Surged 36% in 2016 on Sports and Politics

    FreeWheel has released its 2016 year-end Video Monetization Report,  revealing, among things, that ad views in live streams grew 36% in 2016, powered by marquee sports events and the U.S. presidential election that were streamed to connected devices. FreeWheel cited the Summer Olympics, Super Bowl 50, Game 7 of the World Series, and the first presidential debate in particular as major contributors.

    More broadly, live video helped drive the 24th consecutive quarterly increase in both content views (up 20%) and ad views (up 17%) in Q4 ’16. For the full year 2016, content views increased 26% and ad views increased 24%.

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  • Research: 22% of U.S. Broadband Homes Don’t Have Pay-TV, Double Vs. 2011

    As of year-end 2016, 22% of the 100 million U.S. homes that subscribe to broadband did not also subscribe to a pay-TV service. That’s up from 9% of the 85 million U.S. homes that subscribed to broadband but did not also subscribe to a pay-TV service in 2011. Over the course of 2016 alone, the rate of broadband homes subscribing to pay-TV declined from 82% to 78%, resulting in 22 million broadband homes without pay-TV at the end of last year, compared with 8 million in 2011.

    The data comes from a new report from The Diffusion Group, “Life Without Legacy Pay-TV: A Profile of U.S. Cord Cutters and Cord Nevers” that has just been published.

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  • Research: Mobile Now Accounts for 54% of Video Views Globally

    Mobile accounted for 54% of video views globally in Q4 ’16, up from 46% in Q4 ’15, according to Ooyala’s latest Global Video Index, which tracks hundreds of millions viewers from its 500+ customers around the world. Underscoring mobile’s fast adoption, mobile views were 17% as recently as 2013; Ooyala projects mobile in Q1 ’17 will hit nearly 60% of views, a nearly 4x increase.

    As always, smartphones accounted for the lion’s share of overall mobile viewing and in Q4 ’16, they also accounted for virtually all of mobile’s growth. In Q4, smartphones racked up 47% of views, with the remainder on tablets. While smartphones’ share grew by 8 percentage points just in 2016, tablets lost almost a percentage point.

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  • Nielsen: Connected TV Devices' Penetration Continues to Increase

    Connected TV device penetration and usage are continuing to grow according to new data from Nielsen as of January 31st. Overall, Nielsen found that 23% of TV homes now own an Amazon Fire TV, Apple TV, Google Chromecast or Roku, up from 19% in June, 2016. Nielsen didn’t specify the exact share for each device, only saying that Roku and Apple TV have the highest penetration, with Fire TV and Chromecast following.

    In addition to the “big 4,” another 11% of TV homes have other brands of connected TV devices or have their computers/tablets/smartphones connected to their TVs.

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  • Research: Pay-TV’s High Cost is Creating Huge Industry Vulnerability

    TiVo has released its 16th quarterly Video Trends Report (previously published by Digitalsmiths, which was acquired by TiVo in 2014) and the key takeaway is that pay-TV’s high cost is creating huge industry vulnerability that is already showing up in increased cord-cutting/cord-shaving and higher penetration and use of SVOD services. It also looks possible that interest in skinny bundles could be fueled by their low cost compared to traditional pay-TV.

    TiVo found that in Q4 ’16, 17% of respondents didn’t subscribe to a pay-TV service, and of this group, 19.8% cut the cord in the last 12 months. No surprise, “price/too expensive” was the top factor influencing respondents’ decision to cut the cord, cited by 80.1% of them. But in second position was using a streaming service such as Netflix/Hulu/Amazon, which was cited by 48.3% of respondents.

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  • 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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