Often, it’s said that numbers can “speak for themselves.” Here at NPAW, we’ve been talking a lot about the online video explosion – from your favorite OTT, to the rise of eSports and other live content, and then of course emerging technologies, like virtual reality. However, this time we’d like to take the opportunity to visualize the growth of online video over the past few years, so you can truly appreciate the revolution underway.
Recently, eMarketer released a report analyzing the state of online video. In the following charts, we will highlight what we believe to be four of the most important findings from the report.
CHART I: Mobile is taking over
It’s said to the point of being cliché almost – the revolution in video is going mobile. But looking at a number is one thing, check out this chart from adcolony:
Just since 2012, the share of digital video consumed via mobile devices has grown from insignificant, to near half of all views. If you didn’t believe in the future of mobile before, well, hope you believe it now.
Chart II: Who’s watching on mobile devices?
Let me guess your answer…Millennials. Was I right? (I was) and so are you… sort of. In fact, Millennials are the largest bloc viewing video on their mobile devices, but remember, its never a good idea to stereotype. If the Millennial demographic is further segmented one would find that, younger or “trailing” millennials, aged 14 – 25, are the only group watching more video on mobile devices than on conventional television. Consider the following chart from contently.com:
Older, “leading” millennials still enjoy their television, which prevails as the dominant means of viewership, all the way on up to seniors citizens.
CHART III: TV may remain dominant, but money is moving to mobile
Like the previous chart outlined, in spite of mobile devices dominating video consumption online, TV does dominate overall video consumption. But be wary of the status quo – a medium is only as successful as the money collected in ad revenue. Although this is nothing like the almost overnight transition from radio to television in the 1950’s, investments in mobile video advertising have been growing steadily, as detailed is detailed below.
The audience for mobile video grows, and so too does the investment in ads for same. Marshall McLouhan said “the medium is the message” – people demand videos as personal to them as their mobile device, and advertisers are heeding this accordingly.
CHART IV: Don’t ‘dis the “re-run”
“The average video online only retains a viewer for max 30 seconds.” Something to that effect is the adage atrributed to the ideal length of time for retaining viewer engagement. That may be true, but one shouldn’t doubt an audience’s love for long form programming:
For three years, subscription OTT/streaming services have been growing in subscribers, and growing well. Services that began as sources of essentially On-Demand “reruns”, Netflix, Amazon Prime, and Hulu, have since developed into the producers of successful programming in their own right. From Netflix’s Orange is the New Black and BoJack Horseman to Prime’s The Man in the High Castle and Hulu’s 11.22.63, the creation of successful, quality, entertainment with mass appeal is no longer a right reserved solely to traditional broadcast and cable networks.
At the beginning of this post, we talked about the video revolution. But when it comes to capturing minds, money, and audiences, we should stress the evolution, within the revolution . The ecosystem is changing, and that is a process, not an immediate transition. Television still dominates, but it’s losing ground to OTT’s and other sources of online video content. Just how are those videos being watched? More and more, audiences seem to be reaching for their smartphones, tablets, and other mobile devices, but “traditional” devices like computers and television sets shouldn’t be dismissed easily. In short, the delivery ecosystem is complex and changing, and to get your company ahead of the curve, it isn’t too late to start now.
If your organization is interested in maintaining, or creating, a competitive edge, try YOUBORA, the video analytics platform revolutionizing the revolution. Integrated into your player, YOUBORA will give you unprecedented details and insight into your video delivery “supply chain”. From controlling ad placement and interactions to tracking audience engagement across devices and monitoring disturbances over your CDN or multiple CDNs, with YOUBORA, content managers are NPAWered to deliver to their online audiences experiences equal, if not better than, those delivered by traditional cable and broadcast television.
Vive la rèvolution? We think so.
Just another thing to think about from us here at NPAW.
Image Courtesy of Shutterstock
James Noeker on June 16th 2016
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