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Online Video Advertising Trends

Date post:04-Dec-2014
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How are consumers using online video for their TV viewing. How do they feel about online video ads.
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  • 1. adroitdigital.com ONLINEVIDEO LOOKWHOS WATCHINGNOW A SNAPSHOT OF HOW CONSUMERS INTERACT WITH ONLINE VIDEO CONTENT AND ADVERTISING

2. Contents Introduction 3 Objectives & Methodology 4 Major Findings 5 Demographics 6 Survey 7 Conclusion 18 About Adroit Digital 19 Contact Us 19 ONLINE VIDEOadroitdigital.com 3. 3ONLINE VIDEOadroitdigital.com 3 Introduction On August 1, 1981, MTV aired its first video, The Buggles Video Killed the Radio Star. Fast-forward to 2014 and radio is still very much alive and well, although it has transformed. Interestingly, both radio and video (broadcast/cable television) are currently undergoing what some might call radical changes. Digital entrepreneurs and the rapid consumer adoption of new technologies have driven both of these advertising mainstays onto the Internet, and not by their choice. Radio and the music publishing industry saw the first shot come across their bow with Napster. Broadcast and cable TV now have a similar situation on their hands with the likes of Aereo and other innovative content providers and over-the-top (OTT) devices. The impact of this shift is so profound that the United States Supreme Court will soon rule on how copyright protected video content can be distributed. This represents a potentially major blow to broadcastersspecifically related to their revenue stream from royalties, distribution fees, and advertising. However, this may turn out to be a major win for consumers. They will find themselves squarely in the drivers seat when it comes to what, when, and where theyll consume their audio and video content, including how theyll pay for it and the amount of advertising to which they choose to be exposed. In this shifting landscape, where does this leave broadcasters/content providers and the advertisers that depend on them to reach their audiences? The good news for advertisers is video consumption is on the rise. Much like video didnt kill the radio star, online/on-demand video wont kill network television or the distribution networks (cable, satellite, and local affiliates) that deliver their content. According to eMarketers recent report on US media consumption, overall daily media consumption has risen over 20% from 2010 to 2014. When the focus is narrowed to video only, the story is more dramatic. While TV consumption has grown slightly over 1% in the same period, digital video consumption (online and mobile) has increased over 900%* (this with the caveat that the starting data point is very small). According to eMarketer, Americans own more devices than ever before, and they are spending increasing amounts of time with them collectively.* These devices have opened up an entirely new space for simultaneous media usage. From an overall major media perspective, this all becomes a game of dollars and cents. Who will win the race is far from being determined. But these changes will have a lasting effect on advertisers and how they approach reaching audiences through various video channels across multiple screens, all enabled by new technologies. 4. Objectives & Methodology To gain insight into how consumers view online video content and advertising versus broadcast television, Adroit Digital conducted a study to ask viewers how they approach video consumption and their thoughts on video advertising. The insights gained in the survey are meant to assist agencies and brands in evaluating how their current video strategy and offering align with how consumers watch video content in the multi-screen universe. The study was fielded from April 17 through April 21, 2014. The survey targeted a random sample of United States consumers who self-identified as 18 years of age or older and owning a television, smartphone, and personal computer or laptop. The study garnered 2,000 completed surveys. 4ONLINE VIDEOadroitdigital.com 5. 5ONLINE VIDEOadroitdigital.com Major Findings 63% of our respondents said that if an online provider could satisfy their broadcast TV viewing needs, they would cancel their cable subscription. Men appear to be more likely to cut the cord than women, 67% compared to 57% respectively. 66% of 1824-year-olds would cut the cable cord. This number decreases with those 45 and over at 51%. 68% of all viewers surveyed are consuming video content from YouTube; 51% are consuming video content from live television broadcasts, and, almost equal to TV, 49% are consuming video content from Netflix. Women are bigger Netflix viewers than men, 56% to 43% respectively. 59%ofallrespondents believe theirTV setis transforming into an overgrown monitor for their self-selected content viewing. Men and young adults have a stronger belief in this transformation than do women or older adults. 69% of men believe their TV is becoming more like a monitor for self-selected programming compared to 51% of women. 63% of those 1824 believe the same. It is only in the 45+ age group that the minority, 47%, holds this belief. 36% of all respondents indicated that more than half of their video consumption is on-demand as opposed to live broadcast television. 13% of all respondents watch more than 75% of their video content on-demand. 35% of 1824-year-olds compared to 32% of those 45 and over are consuming more than half of their video consumption from an on-demand source. 28% of respondents indicated they consume 15 or more hours of streaming video content through a game console or web TV device weekly. When it comes to power-watchers (those watching 15 hours or more of streaming video content per week), those ages 3544 are the largest consumers of streamed video at 33%. 68% of respondents would be more influenced by a short video than a text-based ad when seeking new product information. 70% of men compared to 64% of women, and 72% of those 1824 compared to 62% of those 45 and over, would be more influenced by a short video compared to a static or text-based piece of content. 51% of all respondents indicated when watching a 30-minute recorded or on-demand program that they are more likely to watch the entire program including commercials than not. 56% of all respondents indicated they skip online video ads most of the time. However, 20% dont skip online video ads most of the time. 24% let the online video ad content determine if they would skip the ad. 75% of our respondents indicated that there is someone else in their home accessing video content at the same time they are via different devices oftentimes or sometimes. 30% indicated there are often others viewing at the same time they are. 46% of respondents indicated 15 seconds or under as the optimal length for a video advertisement. 35% indicated the optimal length to be 16 to 30 seconds. The minority, 19%, believed 31 seconds or over was the optimal length. 6. 6ONLINE VIDEOadroitdigital.com Gender AGE Demographics Base: n=2,000 Sums may not equal 100 due to rounding Male Female 43% 57% 15% 34% 37% 14% 10% 30% 30% 30% N 77% 35+ 5% 1824 16% MEN 25% WOMEN 38% 3544 35% 1824 2534 3544 45+ NetixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Less t 1 to 10 10 to 3 More Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes Men43% Women56% DVR 30% Men28% Women32% Male Female 15% 34% 37% 14% 10% 30% 1824 1824 2534 3544 45+ Less than 1 minute 34% 37% 4% 10% 35+ 5% 1824 16% MEN 25% 1824 2534 3544 45+ Less than 1 minute 1 to 10 minutes 10 to 30 minutes 7. How many hours do you spend per week consuming online or streamed video content through a game console or web TV device (Apple, Roku, Chromecast)? From which sources do you consume video content? Advertisers may be well-advised to spread their video advertising dollars outside of live television broadcasts. 68% of all viewers surveyed are consuming video content from YouTube; 51% are consuming video content from live television broadcasts; and 49% are consuming video content from Netflix. Men and women select video content from different sources. They both indicated approximately the same level of consumption for live television. However, when it comes to Netflix and DVR content, there is a marked difference between women and men. Women are heavier viewers of Netflix, 56% compared to 43% of men. Women more than men are also using DVRs as a video content source, 32% to 28% respectively. TO TV OR NOT TV, THAT IS THE QUESTION IS BROADCAST TV READY TO SHARE THE SPOTLIGHT? 30% 30% 40% 8am12pm 12pm4pm 4pm8pm 8pm12am 13% 20% 37% 30% 40% 05 515 1530 30+ 35% NetixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision Watch in entirety Skip through ads 49% 51% By m With or fam 30% 70% Most of the time I skip it Most of the time I dont skip it Depends on the ad 45+ 53% 1824/45+ 24% 3544 33% 37% Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes 1824 64% 3544 50% 2534 24% 56% 20% 24% 11% 17% DVR Women 35% Men 38% Male Female 43% 57% 15% 34% 37% 14% 10% 30% 30% 30% 77% 35+ 5% 1824 16% MEN 25% WOMEN 38% 3544 35% 1824 2534 3544 45+ NetixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Less tha 1 to 10 m 10 to 30 More th Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes Men43% Women56% DVR 30% Men28% Women32% 7ONLINE VIDEOadroitdigital.com Base: n=2,000 Sums may not equal 100 due to rounding 28% of respondents indicated they consume fifteen or more hours a week of streaming video content through a game console or web TV device. Men are more likely than women to consume between five and fifteen hours weekly of streaming content, 38% to 35% respectively. When it comes to power-watchers (those watching 15 hours or more of streaming video) by age group, those ages3544 are the largest weekly consumers of streamed video at 33%. Boththeyoungest respondents, ages 1824,

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