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
Jun Group, the incentivized video ad provider, has shared a new infographic with a few interesting nuggets of data, indicating, among other things, that mobile video ads are getting longer and are also more engaging than video ads delivered online. Based on 10.2 million mobile and online video views in Q1 and Q2 2013, Jun Group found that 54% of mobile ads are now 30 seconds, 10% are 60 seconds and a surprising 32% are 90 seconds (personally I'm glad I haven't experienced one of these yet).
Topics: Jun Group
Last week Piksel (formerly KIT Digital) released results of one of the first consumer surveys to address the phenomenon of "binge" video viewing. Among findings: fully 94% of respondents are engaging in some level of binge viewing, either by quickly immersing themselves in as many episodes of a new series as possible, watching 1-2 episodes every few days (what Piksel calls "sippers"), or combining these two habits (see chart below).
I'm pleased to present the 195th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Colin patched in from Amsterdam, where he's attending the big IBC show. Colin sat in on an interesting session with Keith Hindle, CEO of FremantleMedia's Digital & Branded Entertainment Division. For those not familiar with Fremantle, it is one of the biggest producers of TV shows in the world, with credits like American Idol and The X Factor.
Colin shares some of Hindle's key observations about how the TV landscape is shifting, the powerful role of 2nd screen apps in attracting advertisers, the paradigm of "paid/owned/earned" media and how to balance TV distribution vs. online (Fremantle is the 12th-ranked YouTube content partner). Lots of great insights.
We then shift our focus to the plethora of data this week quantifying the surge in mobile and tablet viewing. I have covered new reports from FreeWheel, Ooyala, VEVO and TubeMogul this week, all supporting this trend. VEVO in particular is capitalizing, with 50% of its views now on mobile, tablet and connected TVs (note, the success of VEVO TV has been a huge contributor on the latter).
Still, as we agree, it's important to remember that TVs and desktops are where the vast majority of video viewing currently occurs, per Nielsen and FreeWheel data respectively. This is changing each quarter, but it's an evolutionary, not revolutionary shift.
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(Note there is a 3 second drop-out in the audio mid-way. Apologies, we're not sure what happened. During it, I am referencing VEVO TV.)
Ooyala is showing a new mosaic player, giving viewers the option to watch up to 5 live or on-demand video streams simultaneously. The company has also released its Q2 2013 Global Video Index, with new data reinforcing the growth of mobile and tablet video.
The mosaic player (see screen shot below) will first be available on the desktop, and subsequently will roll out on tablets, smartphones and connected devices. Ooyala's director of products Sudhir Kaushik showed it to me last week and explained it is mainly intended for sports broadcasters looking to provide multiple camera angles and/or sports fans trying to watch multiple games at once. Sudhir touted the increased monetization opportunities that the mosaic player creates, as well as the personalization for users. All of Ooyala's analytics are included in the mosaic player.
FreeWheel has released its quarterly Video Monetization Report for Q2 2013, and among other things, it shows a gap in video ads viewed on smartphones vs. videos viewed on them. Per the chart below, FreeWheel found that although 13.2% of videos were viewed on smartphones, just 5.6% of video ads were viewed on them. Tablets had a gap too, albeit smaller, with 4.3% of video views and 3% of ad views, while the ration of connected TV device views to ads was in-line at 1.2%-1.3%. Only desktop ad views surpassed video views in relative viewership.
There was an eye-opening data point in VEVO's viewership report for the first half of 2013, published this week: 50% of its U.S. video views now come from mobile, tablet and connected TV devices. In fact, in an interview on Bloomberg in late August (see below), VEVO CEO Rio Caraeff said non-desktop U.S. views are now over 500 million per month, more than half of its approximately 1 billion U.S. monthly views. He also characterized non-desktop as the fastest growing part of VEVO's business.
The 50% non-desktop number is the highest I've seen disclosed by any online video content provider. Over the past year, when I've informally asked content providers about mobile/connected TV views, I've typically heard 25%-30%. By comparison, YouTube (note, VEVO is the largest partner) says on its site that mobile is 25% of its global watch time.
An interesting nugget of data in TubeMogul's quarterly research report released last week was that the click-through rate on mobile video pre-roll ads in the U.S. is a robust 4.9%, more than 8 times higher than the .6% CTR that TubeMogul tracked for pre-rolls on non-mobile devices. Of the 5 countries TubeMogul reported on, the U.S. disparity is by far the biggest, with Canada and Australia following with about a 3x higher CTR for mobile vs. non-mobile (see chart below).
TV Everywhere is the pay-TV industry's most important strategic priority to combat OTT viewing and enhance the value of expensive monthly subscriptions. In my view, a pretty good proxy for how TV Everywhere adoption is going is subscriber usage of pay-TV operators' tablet apps. According to a new report from Digitalsmiths, there is both good news and bad news on this: usage is increasing, but it remains at a nominal level.
The Digitalsmiths Q2 2013 Video Discovery Trends Report, based on 1,850 adult respondents, shows that of the 29.5% of respondents who say they own a tablet, just 23.8% have downloaded their pay-TV operator's app. Over half (52.4%) don't even know whether their pay-TV operator offers an app. In a bit of good news though, 42.9% of those who have downloaded their pay-TV operator's app say they use the app at least once per week. Indexing to 100 respondents, this would mean approximately 3 respondents, or 3%, use their pay-TV operator's app at least once per week.
Taboola and Kaltura have released the results of a poll taken during a recent webinar they conducted, in which attendees (content publishers and advertisers) were asked about their interest in using paid recommendations/native advertising to build their video viewership. The poll found that while 27% currently use paid recommendations/native advertising, 95% said they would "consider switching from marketing their videos using traditional advertising to paid recommendations/native advertising in the next few years."
(Note a couple of caveats here: the sample size was just 34 respondents, so the results are more directional than statistically significant. Also the webinar itself was focused on content recommendations, so presumably those attending were already interested in the topic.)
Underscoring how important YouTube has become as a marketing channel, a new study (free download here) from Pixability has found that all but one of the Top 100 Global Brands (as identified by Interbrand) now maintain a presence on YouTube. Together these 99 brands have generated 9.5 billion views on YouTube across 2,200+ channels, with over 258K videos posted.
Beyond the overall volume of activity, the Pixability study discloses a wide variation in the activity level and effectiveness of the brands' channels. Most striking is that less than half the brand videos posted gained 1,000 views or more while just 1,300 videos - a tiny fraction of all the total posted - achieved more than 1 million views. Further, 37% of brand channels haven't been updated with new content in over 120 days and many brands' channels were simply inactive.
Categories: Brand Marketing
I'm pleased to present the 190th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
We start our discussion with data that TiVo Research and Analytics (TRA) released this past Monday, which concluded, among other things, that Netflix does not cannibalize traditional TV viewing. TRA also identified the percentage of respondents who subscribe to Netflix (and other services) who watched "House of Cards." Using these numbers, Colin calculates that about 10 million people watched the program, a healthy amount by any standard (Netflix hasn't publicly released HoC's audience). Colin sees a class of "super-viewers" whose traditional TV consumption is augmented by, not substituted with, Netflix.
One thing that caught my attention in the TRA data was that while Netflix had a 57% adoption rate among respondents, Amazon Prime was right behind it, at 50% (Hulu Plus was further back at 18%). To be fair, it's not clear whether these Prime members are actually watching video included in Prime, or are mainly focused on the unlimited shipping benefit. But, assuming that many DO watch video, it's an impressive number for Amazon, and underscores how far Prime has come in the 2 1/2 years since Instant Videos were launched.
Colin and I discuss Amazon's broader agenda and how its aggressive pursuit of video is strategic in supporting both Prime and the Kindle ecosystem (all of which I described in my post this past Monday). Given Amazon's willingness to operate on razor-thin margins, I foresee the price for licensing high-quality content continuing to rise, which will in turn pinch profitability (and subscriber growth) at pure play OTT providers like Netflix.
Click here to listen to the podcast (16 minutes, 48 seconds)
Google's new Chromecast device dominated the video landscape last week, making it easy to miss a highly noteworthy news nugget from Amazon: on its Q2 '13 earnings call last Thursday, Thomas Szkutak, the company's SVP/CFO said, "We're having new Prime members come to Amazon largely because of video." Szkutak's comment was a stark reminder of how far video has come for Amazon in the 2 1/2 years since it was first included in the $79/year Prime service.
Video - and other content/apps - are critical to Amazon because they all support two of the company's most important consumer-facing priorities: growing its highly profitable and sticky Prime service and supporting its line of Kindle devices in the fiercely competitive tablet market. Amazon's ability to successfully use video in service to these other businesses no doubt helps drive its willingness to spend heavily on content licensing and also to invest in its own original productions.
Investment firm Needham & Company has released its latest Future of TV report, with lead analyst Laura Martin concluding that the biggest current risk to the TV industry's economics is unbundling of subscription TV channels. Martin asserts that if consumers had the option to choose their channels on an a la carte basis, rather than the multi-channel bundles that pay-TV operators currently offer, approximately 50% of today's TV revenue would be eliminated with fewer than 20 TV channels surviving.
The draconian forecast adds a financial dimension to the ongoing debate around whether the TV industry will need to radically re-think its business approach if - and it's still a big "if" - cord-cutting gains momentum. To date cord-cutting (and "cord-nevering," where younger viewers simply don't subscribe to pay-TV as in the past) have been relatively muted, with estimates for 2012 in the 500K range. However, several key industry trends such as the escalating cost of pay-TV, changes in consumer behaviors, proliferation of connected and mobile viewing devices, the surge in OTT SVOD adoption (e.g. Netflix) and DVR-based ad-skipping all suggest that the industry's traditional bundled model could be tested over the next few years.
I'm pleased to present the 186th edition of the VideoNuze weekly podcast with my weekly partner Colin Dixon of nScreenMedia. Colin attended a CDN conference earlier this week first shares observations on the potential long-term rollout of 4K TV and HEVC, along with the deployment of Netflix's Open Connect CDN based on conversations with Netflix and Time Warner Cable.
Next we turn to data from NPD earlier this week indicating that for watching TV shows, DVR usage is more than twice as popular as SVOD services like Netflix, Hulu Plus, Amazon, which I wrote about earlier this week. Colin caveats the data, noting that in SVOD-specific homes he believes the usage is stronger than NPD suggests.
Lastly we touch on news that Samsung will be selling curved TVs, for $13K apiece. Colin and I are skeptics, to say the least.
Listen in to learn more!
Click here to listen to the podcast (16 minutes, 28 seconds)