Partnered with InsightsNow to conduct two in-depth video studies
WHAT WE DID
Buyers (agency & brands) and sellers (publisher, ad network
& ad tech) that are involved in digital video advertising (desktop,
mobile or OTT/connected TV)
1,600
Consumers aged 16-54
1,300
Markets: UK, USA, Japan, France, Australia, Canada,
South East Asia (Q4 2016)
7
WHO PARTICIPATEDBUYERS
Agencies
Brands
SELLERS
Publisher/digital media co selling advertising solutions
Ad tech provider selling advertising technology solutions
CONSUMERS
Aged 16-54
Watched online videos at least once a month
WHAT WE LEARNED
MACRO TRENDS MOBILE VIDEO PROGRAMMATIC EMERGING VIDEO TRENDS
AD FORMATS ORIGINAL VIDEO CONTENT MEASUREMENT THE FUTURE OF DIGITAL VIDEO
ONLINE VIDEO IS A DAILY HABIT FOR CONSUMERS
of consumers watch online videos daily
71%of consumers say they watch more than a year ago
54%of consumers are watching more than 4hrs of online video a week
42%4+hrs
Source: AOL State of Video Industry 2017, UK
THE WORLD IS MOBILENo machine has changed how humans live, communicate and influence as much as mobile.
71%of consumers agree “I can’t live without my smartphone” or “Its always within arms
reach”
46%of advertisers
plan to increase mobile ad spend
by 25%+
52%of consumers watch
videos on their smartphones every day
60%of consumers watch live video content on their smartphones
Source: AOL State of Video Industry 2017, UK
While online video consumption is growing for all video lengths, more consumers are watching short-form video (under 10 min) on a weekly basis
A BOOM IN SHORT-FORM VIDEO
64%
:60
of consumers watchvideos that are 1 minute
or less every weekPercentage of consumers and the amount of time they spend watching videos every week
60%52%
56%
6-9 mins
10-20 mins
20 minsor more
66%1-5 mins
Source: AOL State of Video Industry 2017, UK
Source: AOL State of Video Industry 2017, UK
DIGITAL VIDEO SPEND CONTINUES TO RISE
39%
41%
42%
42%
45%
45%
OTT/CONNECTED TV
DISPLAY
NATIVE/CONTENT MARKETING
SEARCH
SOCIAL
VIDEO
% OF BUYERS EXPECTING TO INCREASE SPENDING IN 2017 (+25% OR MORE)
49%
49%
44%
41%
35%
33%
7%
Television
Display
Search
Out of Home
Direct Response
Other Media Type
VIDEO INVESTMENT IS COMING FROM TV (AND ALSO EXISTING DIGITAL BUDGETS)
INCREASE IN VIDEO BUDGETS ARE SHIFTING FROM
Source: AOL State of Video Industry 2017, UK
49%47%
44%41%
35%33%
7%
Display Television Print Search Out of Home Direct Response
Other Media Type
TV BUDGETS ARE GOING TO DIGITAL VIDEO
INCREASE IN VIDEO BUDGETS ARE SHIFTING FROM% shifting TV budgets
to other channels
DESKTOPVIDEO
61%MOBILE VIDEO
59%
Source: AOL State of Video Industry 2017, UK
TARGETING & CONTENT ARE DRIVING VIDEO GROWTH
Social media & quality creative are50%
47%43%
38%33%
27%24%
21%16%
Better targetingand
personalization of video ads
Betterquality content
Better quality creative
Social media video offerings
Better loading times/userexperience
Integrated video/interactive
ad units
Outstream player Shift from other ad types
More available inventory
TOP DRIVERS TO VIDEO REVENUE GROWTH (BUYERS)
Source: AOL State of Video Industry 2017, UK
PROGRAMMATIC SPEND CONTINUES TO RISE
of advertisers expected to increase programmatic video spend this year
79%of publishers expected
programmatic video revenue to increase this
year
87%
Source: AOL State of Video Industry 2017, UK
CONSUMERS EXPECT PRE-ROLL, BUT THE ‘RIGHT’ LENGTH VARIES
63%47%
33% 32%
22%
33%
37% 31%
12%14%
23%25%
3% 7% 8% 12%
LESS THAN 1 MINUTE 1 TO <5 MINUTES 5 TO <10 MINUTES 10+ MINUTES
1+ minutes
31-60 seconds
16-30 seconds
Less than 15 seconds
Length of Video
Expectations of Ad Length by Duration of Video(% of Consumers)
Length of Video Ad
Source: AOL State of Video Industry 2017, UK
QUALITY & RELEVANCY FUELS THE VALUE EXCHANGE
Source: AOL Short Form Video Study – A Consumer Perspective, UK, 2016
I’m prepared to see a brand advertised or involved with the video, if the content is
interesting to watch
63%
I’m more likely to watch adverts before a video if I
know the quality of the video itself will be good
59%
If watching a video I really like, I don’t mind if the
brand is really prominent throughout the video
47%
CONSUMERS WANT CONTROL OVER VIDEO ADS
I appreciate the ability to skip ads before I watch an
online video
71%
I would like to have some control over which ads I
watch
64%
Source: AOL State of Video Industry 2017, UK
57% of Advertisers identified branded content as the biggest revenue opportunity over the next 12 months.
BRANDED VIDEO IS STILL A TOP REVENUE DRIVER
48%
57%
55%
User generated content
Branded video content (content that is co-created between an advertiser and a publisher/content creator)
New Formats like 360 Video, Vertical Video, Virtual Reality, Augmented Reality, Outstream
2017 TOP 3 REVENUE OPPORTUNITIES – VIDEO CONTENT FORMATS
Source: AOL State of Video Industry 2017, UK
ADVERTISERS SEE QUALITY & PROOF POINTS AS TOP CHALLENGES
13%
17%
21%
21%
21%
29%
29%
29%
38%
38%
46%
Scale
Lack of understanding of the space
Lack of promotion of the video content to audiences
Lack of custom integration
Audience and campaign measurement
Lack of transparency in the buying process
Video ad unit lengths
Price/cost
Lack of standard success metrics
Proof of ROI for video vs. other media
Quality of content
MARKETERS TOP 3 CHALLENGES WITH BUYING BRANDED VIDEO CONTENT
Source: AOL State of Video Industry 2017, UK
ADVERTISERS ARE OPTIMISTIC ABOUT NEW FORMATS
57%55%
48% 48%
32% 30% 30%
Branded video content New Formats(360, Virtual Reality, Augmented Reality,
Outstream)
1 - 5 minutes User generatedcontent
10 minutes or more
6 - 9 minutes Under 1 minute
2017 TOP 3 REVENUE OPPORTUNITIES – VIDEO CONTENT FORMATS
Source: AOL State of Video Industry 2017, UK
LIVE VIDEO GAINS GROUND
73%of consumers have
watched live video content
68%of advertisers plan
to invest in live videoin 2017
Source: AOL State of Video Industry 2017, UK
NEWS, MUSIC AND SPORTS DOMINATE LIVE VIDEO
Types of Live Video Most Interested in Watching(% Mentioned Top 3)
Music Events/Concerts
BreakingNews
SportingEvents
AwardsShows
PoliticalCoverage
40% 31% 15% 12%36%
Source: AOL State of Video Industry 2017, UK
CONSUMER APPETITE FOR VR CURRENTLY LAGS BEHIND ADVERTISERS' ENTHUSIASM
of agencies & advertisers currently
buy or plan to buy VR or AR in 2017
58%
of consumers say they expect to spend more time watching
VR this year
9%31% in US
HEADSET AVAILABILITYAND A MISCONCEPTION THEY ARE ONLY FOR GAMERSARE BARRIERS TO VR TAKE UP
Reasons for not consuming more VR in next 6 months %
My computer is not powerful enough to power VR 39%
VR headsets are only for people who play video games 38%
There are not enough VR videos to watch 33%
The VR headsets are too expensive 33%
I don’t have access to a VR headset 27%
Source: AOL State of Video Industry 2017, Consumer, UK
CONSUMERS WANT VR ENTERTAINMENT AND TOURISM
ENTERTAINMENT(MOVIES, TV) 42%
VIRTUAL TOURISM 37%
SCIENCE & NATURE FOOTAGE 37%
DOCUMENTARIES 34%Source: AOL State of Video Industry 2017, UK