There are all kinds of videos available online these days, but, according to a recent survey by the NY Times Consumer Insights Group, those that entertain are still the most popular for frequent viewers. 78% of survey respondents who watch online video several times per month cited "entertains me/enjoyable" as the reason they watch online video, followed by "makes me laugh" (71%). In third place was "learn something new" (64%).
Topics: NY Times
Premium video is being more widely distributed over IP networks due to TV Everywhere initiatives. While this means improved viewer satisfaction and new revenue for pay-TV operators, it also means dramatically higher risks of piracy. It's an issue I hear about often and am constantly trying to understand better. A new white paper from software provider Civolution does a nice job of describing the issues and framing potential solutions. It is available for free download here.
Categories: TV Everywhere
According to a recently released study by the Association of National Advertisers (ANA) and Nielsen, multi-screen advertising will grow from 20% of advertisers' budgets today to nearly 50% in the next three years. While 48% of respondents said they believe multi-screen campaigns are very important in effectively delivering marketing messages, almost twice as many (88%) believe that these types of campaigns will be very important in three years.
One of the biggest issues for multi-screen advertising is measurement due to a huge gap between existing measurement approaches and how respondents would prefer to measure integrated multi-screen campaigns. 71% of survey respondents said they use a variety of metrics specific to individual screens, but 73% said they would prefer to use just one set of metrics across all screens.
Here's a good news / bad news story for TV executives closely watching millennials' video consumption habits as a harbinger of what the future may look like. The good news is that, in new research by YuMe and IPG Media Lab, TV shows are still the most popular type of video millennials are watching, cited by 37% of the group.
The bad news however, is that among women 18-24, hours of TV viewing/week was down 10% year-over-year and among men 18-24 it was down 7%. Of note, user-generated content was a close second to TV shows in popularity, cited by 33% of millennials, and ahead of movies (28%), music videos (19%) and news (13%). For low-budget UGC to be vying so closely with expensive TV programming for millennials' attention says a lot about their changing tastes.
It turns out that football not only drives audience spikes on TV, but also online video advertising and engagement across devices. That's according to Adap.tv which this morning released select data from its video ad marketplace. Adap.tv has found that football has driven an overall 81% increase in video ad opportunities, with a 127% bump in smartphone video ads, 120% on desktops and 22% on tablets.
Research firm IHS has updated its forecast for 2013 global TV shipments, now predicting a decline of 5% for the full year. This would be the second consecutive down year, following a 7% falloff in 2012 (I'm confirming whether this is the first time IHS has ever seen consecutive year declines. UPDATE: IHS has confirmed this is the first-ever 2 year consecutive decline). Shipments for 2013 are now estimated at 226.7 million units. IHS believes 2014 shipments will increase by just 1% in 2014 to 229 million units.
IHS analyst Jusy Hong noted that there are a number of reasons for the 2013 decline, but the main ones are global economic weakness and maturity of the TV market in advanced regions. Just last week, IHS released a survey on Smart TVs, showing relatively high awareness, but low purchase intent in the U.S. as price emerged as the top decision-making driver, eclipsing screen size.
The Web Video Marketing Council (WVMC) has released its 3rd annual report on online video marketing showing that 93% of respondents are using online video for marketing, up from 84% in 2012. Also, 71% said they are increasing their budgets in 2013. The report surveyed over 600 marketing professionals about their use of online video in mostly B2B and some B2C organizations.
One of the more interesting findings was that 60% of marketers are using online video on e-mails, an increase of 8% from 2012. About 82% said that integrating video with email marketing was either “effective” or “very effective” and has had a positive impact on sales and marketing.
Today I'm pleased to introduce the newest VideoNuze contributor, Jose Alvear, who is a research analyst specializing in the pay-TV and online video industries. Jose has authored research reports on content delivery networks, IPTV, OTT video, cloud-based TV and social TV for leading firms in the industry. Jose is currently working on a book focusing on the disruption of the TV industry.
Survey: Price Sensitivity and Connected TV Devices Cloud Picture for Smart TV Adoption
by Jose Alvear
Researcher IHS released survey results earlier this week suggesting a muted forecast for Smart TVs amid rising consumer price sensitivity and a proliferation of inexpensive connected TV devices. IHS found that 73% of U.S. consumers are not interested in buying a Smart TV in the next 12 months. IHS said that once consumers are educated about Smart TVs and learn more about their features, interest does increase. Overall awareness of Smart TVs is high, at 86%, with 30% expressing purchase intent over the next 12 months.
But how intent translates into actual purchase is always tenuous and in this case, particularly so. That's because IHS also found that price has now vaulted to the top position as a driver for TV purchases, surpassing "screen size," which had been cited by more than 50% of respondents in 2012.
I'm pleased to present the 201st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week we're joined by special guest Ramesh Sitaraman, professor at University of Massachusetts, Amherst and an Akamai fellow. Ramesh and Akamai's S.S. Krishnan released an academic research paper this week studying the effectiveness of online video advertising (I wrote about it here and Colin here).
In the podcast, Ramesh adds color to his findings. Among other things, he discusses mid-rolls' high completion rates, time-of-day's low impact on completion, geographic viewership differences and abandonment of ads vs. slow-starting content.
Listen in the learn more!
Click here to listen to the podcast (17 minutes, 55 seconds)
A new academic research paper on video advertising effectiveness, written in partnership with Akamai, shows among other things that mid-roll video ads have the highest average completion rate at 96.8%, followed by pre-rolls with 74.3% and post-rolls at 44.7%.
Even when controlling for other factors like an ad's length or the video itself, mid-rolls continued to have the highest completion rate. The data underscores the value of an already engaged viewer. The new research aligns with prior research from FreeWheel which also showed mid-rolls with the highest completion rates of 97% for 15-second ads and 91% for 30-second ads.
Adap.tv and Digiday have released their Q4 2013 state of the video industry survey results, which found strong interest in online and mobile video advertising. In particular, 86% of brands anticipate increasing their online video ad spending in 2014, by an average of 65% vs. what they spent in 2012. In addition, 91% of agencies see an increase averaging 28% vs. 2012 spending.
However, there's disagreement on how these online video ad spending increases will be funded. 42% of agency and brand executives believe that budgets currently used for out-of-home advertising will be tapped, followed by Search (26%) and broadcast TV (21%). But when brands alone are broken out, 33% said "no other category" (implication is video spending is incremental), with broadcast TV in second (cited by 31%), display (30%) and print (19%). In a sign that plans to poach broadcast TV dollars may be over-estimated, 42% of buyers said there hasn't been any change in their spending on that media.
New research released today by Veveo reveals that nearly 2/3 of pay-TV viewers know what they want to watch "almost always" or "most of the time." In addition, almost 75% of them said they'd like better search capabilities from their pay-TV operator, a preference that dwarfed recommendations as an option, which was cited by less than 5% of respondents. Heavier TV viewers' preference for search was even stronger.
According to Sam Vasisht, Veveo's CMO, whom I spoke to last week, the findings underscore the extent to which search has become an integral part of everyday life for many consumers. The fact that search has become a positive online experience for many means that sub-optimal search tools provided by pay-TV operators becomes more glaringly obvious, leading to viewer frustration and lost revenue opportunities.
Market researcher IHS has released its first study of TV Everywhere deployments in the U.S., finding that 73 different cable networks are now allowing authenticated online/mobile access for on-demand viewing. Per the chart below, NBCU leads among the ad-supported segment, with 15 of its 18 networks offering some TVE VOD option, followed by Time Warner (Turner) with 9 networks and News Corp. and Viacom each with 6. Discovery is the only major cable network group not yet offering TVE, but IHS expect that to change soon.
YouTube is now getting nearly 40% of its views from mobile devices, up from 6% in 2011. That nugget was shared by Google's CEO Larry Page in its Q3 2013 earnings call yesterday. YouTube is the latest content provider to share strong mobile viewership data; in the past several weeks BBC said its iPlayer mobile views are now up to 32% of total, VEVO said 50% of its views are mobile and PBS Kids said 75% of its are mobile.
These are clearly leaders in mobile and their viewership shows mobile's potential. More often these days, I'm hearing content providers say 20-30% is the range for their mobile views. Note, if you want to learn more about mobile video, both VEVO and PBS Kids (along with ESPN and Beachfront Media) will have executives speaking on the mobile video session at VideoSchmooze on Dec. 3rd (early bird discounted registration is now available).
With 3.7 billion video ads served, the combined AOL-Adap.tv has landed atop comScore's September 2013 U.S. Online Video Rankings. (see chart below) It's the first time that AOL has outranked Google (primarily YouTube), which dropped to second with 3.2 billion video ads served. On its own in August, Adap.tv served over 2.5 billion video ads. AOL-Adap.tv was also tops in total ad minutes in September with over 1.6 billion, followed by BrightRoll with nearly 1.3 billion.
It's common knowledge that watching online videos has become hugely popular, but it turns out that posting videos has also experienced a huge surge recently. According to new research from Pew, 31% of adult Internet users now post videos, more than double the 14% that did so back in 2009. Though posting is still most common among 18-29 year-olds (with 41% doing so), 30-49 year-olds are right behind (36%), trailed by 50+ year-olds (18%). See chart below.
The IAB has released its Internet advertising report (based on an industry survey conducted by PwC) for the first months of 2013, revealing a 17.8% increase in total online advertising to $20.7 billion in 1st half 2013. Online video's share was $1.3 billion, up 30% from the $1B it totaled in 1st half 2012.
The 30% growth was the highest of all categories of online advertising except mobile, which grew to $3 billion in 1st half 2013, up a blistering 145% from the 1st half of '12 and almost 4x from the $636 million it generated in 1st half of '11.
Early Chromecast owners appear to be integrating the device into their lives, with almost a third or more of them using it daily or almost daily, according to a survey conducted by research firm Parks Associates. Not surprisingly, using Chromecast to watch video on TV is most popular on a daily/almost daily basis (38%). But right behind is "displaying web pages on your TV" (36%), followed by "listening to online music through your TV" (32%).
YouTube was the most-used video source on a daily/almost daily basis (49%) followed by Netflix (47%), Hulu (38%), other video web sites (36%), HBO GO (30%) and Amazon Instant Video (30%). Note that all but the YouTube and Netflix usage must be happening by "tab casting" from the Chrome browser, since none of these video sources have yet integrated Chromecast's "casting" feature (the survey was taken in August, before Hulu Plus integrated casting).
For busy video industry executives, tracking and making sense of the dizzying array of video industry-related research and reports released on an almost daily basis has become impossible. Yet, the data is extremely valuable because it often provides critical insights into the fast-changing video landscape.
To address this growing problem, today I'm thrilled to announce an exciting new initiative - "VideoNuze iQ" - a dedicated editorial hub for video industry research, data and analysis. VideoNuze iQ is meant to be a trusted, comprehensive, go-to resource that industry executives can rely on to keep them up-to-date on relevant data and/or as a valuable tool to support their own research, presentation and sales support needs.
Topics: VideoNuze iQ
There is a lot of talk these days about pay-TV cord-cutters and cord-nevers and how OTT providers can leverage this group to build their businesses. But a data point from research firm Leichtman Research Group last week that caught my eye suggests this market may be smaller than many people think and also not growing very fast. LRG noted that just 9% of U.S. homes subscribe to a broadband Internet service, but not a pay-TV service, up just slightly from the 8% level in both 2011 and 2012 (see graph below).
Further, Bruce Leichtman of LRG told me that of the broadband/no pay-TV group, just 37% get their broadband from speedier and pricier cable or telco fiber deployments. That compares with 75% taking these services among other broadband subscribers (remember than cable and telco fiber are by far the most prevalent broadband services).
Topics: Leichtman Research Group