Twenty five million U.S. adults participated in streaming watch parties in the past year, according to new research from The Diffusion Group. A watch party is when two or more viewers co-watch synched, on demand video with others outside their homes using any screen connected to the Internet and use social features while watching. TDG surveyed 2,000 U.S. adults over age 18 who use an SVOD service. If under 18 year-olds were surveyed as well the total number of watch party users would no doubt further increase.
Topics: The Diffusion Group
Welcome to the first edition of the new Inside the Stream podcast with Colin Dixon of nScreenMedia. After many years of recording together, Colin and I decided it was time for a branding refresh. With Inside the Stream we intend to keep providing an insider’s perspective on the streaming video industry. We’re adding a feature at the beginning of the podcast noting a few important stories that hit our radar. We also intend to bring on more guests to the podcast.
This week we discuss YouTube’s dominance, underscored by Pew’s latest research, showing 81% of U.S. adults use YouTube. Then Colin shares an updated forecast for Disney+ and what it means to the larger Walt Disney company.
Many thanks to our inaugural Inside the Stream sponsor Verizon Media. When you have quality connections at scale, you’re truly connected.
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YouTube is used by 81% of U.S. adults, according to Pew Research Center’s new Social Media Use in 2021 survey. That’s up 8 percentage points from the 73% YouTube usage rate that Pew found in 2019. Among all the other social platforms Pew polled, only Reddit experienced a statistically significant increase in usage from 2019 to 2021, up from 11% to 18%. Facebook is the second-most popular, with 69% usage; all others are below 50%.
YouTube’s dominance over other social platforms spans gender, race, age, income, education and geography. Pew’s data highlights why YouTube has become so attractive to advertisers. For example, YouTube is used by 95% of 18-29 year-olds and 91% of 30-49 year-olds, compared to Facebook’s 70% and 77% respectively. It is used by 90% of those with incomes of $75,000 or higher, compared with Facebook’s 70%. And YouTube is used by 89% of college grads or above, vs. Facebook’s 70%. The only category where other social platforms come a reasonably close second to YouTube is among 18-49 year-olds where Instagram and Snapchat have 71% and 65% usage rates respectively.
57% of U.S. TV households had either Roku or Amazon Fire TV smart TVs or streaming devices in Q1 ’20, according to survey results in the newest Connected Home report from Hub Entertainment Research. The two companies’ combined share rose from 51% in Q1 ’20.
Among just U.S. homes with a smart TV or streaming device, Roku’s and Amazon’s share was a combined 69%. Of this Roku has a 40% share and Amazon Fire TV has a 29% share. These numbers are very close to those in FreeWheel’s recent Video Marketplace Report, which found the companies with a combined 72% share (Roku with 43% and Amazon with 29%). Hub didn’t report findings for smart TVs and players beyond Roku and Amazon.
Topics: Hub Research
Ad spending on SpotX’s platform increased by 42% in 2020 vs. 2019, driven mainly by over-the-top/connected TV clients who now comprise almost 70% of overall ad spending on the platform. SpotX said that after a Covid-driven pullback in Q2, platform spending globally grew 70% in Q4 ’20 vs. Q4 ’19. North America is still the dominant territory for SpotX, accounting for 88% of ad spending in 2020, though EMEA and APAC grew by 107% and 66% respectively in 2020 vs. 2019.
Welcome to the 555th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
This week we discuss new data from FreeWheel and Nielsen highlighting gains in connected TV usage. Higher usage directly translates to ongoing CTV advertising revenue gains. One example of how this usage translates was a bullish new forecast from MoffettNathanson which pegs YouTube/AVOD ad revenue growing to $53 billion in the U.S. alone by 2025. MN sees a new “mid-top layer” of the traditional marketing funnel emerging that blends the long-form video experience being driven by CTVs with better targeting and conversion.
Listen in to learn more!
Click here to listen to the podcast (25 minutes, 13 seconds)
A reminder that VideoNuze’s next Connected TV Advertising Summit (Virtual) will be on the afternoons of June 9th and 10th. Registration is complimentary and all attendees will be entered to win a 50-inch Roku TV and Smart Soundbar generously provided by Roku.
CTVs and streaming have become the top priority for content providers of all sizes, as well as advertisers looking to reach younger cord-cutters in particular. The pandemic and proliferation of ad-supported streaming services has driven CTV usage higher; earlier this week FreeWheel reported that 62% of consumption on devices in the second half of 2020 was on CTVs. eMarketer predicts CTV advertising in the U.S. alone will jump to $18.3 billion in 2024, up 61% from 2021.
VideoNuze’s 2021 Connected TV Advertising Summit (Virtual) will bring together senior executives from ad buyers, content providers, technology companies and other stakeholders. The two afternoons of high-impact learning will include one-on-one interviews, panel discussions and research presentations with fresh, actionable data. Once again, the CTV Ad Summit will be the most focused, in-depth conference of the year on CTVs and CTV advertising.
If your business success depends on understanding the future of CTV, the CTV Ad Summit is a must-attend event.
Many thanks to our Gold partners Beachfront, Extreme Reach, Mediaocean, Roku and Xandr. To learn more about sponsorship opportunities please contact me.
Advertising on YouTube and ad-supported video-on-demand (AVOD) services will grow from approximately $19 billion in 2021 to approximately $53 billion in 2025 in the U.S., a 29% compound annual growth rate, according to a new report from analysts MoffettNathanson. MN sees 67% of the 2025 spending, or approximately $35.5 billion, going to YouTube alone, with other AVOD providers splitting the remaining 33% or $17.5 billion, just about how spending is allocated currently.
MN characterizes the YouTube/AVOD ad spending as a new “mid-top layer” of the traditional marketing funnel, sitting below top-of-funnel brand advertising traditionally dominated by TV spending which MN forecasts will stay roughly flat by 2025 at around $70 billion. It sees total top-of-funnel spending declining from $108 billion in 2021 to around $99 billion in 2025. Below the YouTube/AVOD layer is middle-of-the-funnel digital/social media (except search) which will increase from an estimated $64 billion in 2021 to an estimated $137 billion in 2025, a 21% CAGR.