Mar 08

The past couple of weeks have produced a news trend in the online video space all revolving around the same topic. The increased usage of smartphones and how that is affecting the video ecosystem.  This is always a good time to take a step back and look at the data to identify what kind of story it is telling. So this week’s blog post is a summary of those numbers and sources with one very important message for online marketers. The increase in smartphone and tablet usage, increases video views on devices which is a content marketing and video advertising opportunity.

Image courtesy of adostrategies.com

46% of U.S. Adults Own Smartphones
This headline comes to you courtesy of Media Post, but the data is from a recent Pew Study which indicates that as of February 2012, almost half of all American adults (46%) are smartphone owners. (Nielsen and comScore also reported similar trends at 48% and 42% respectively). In other words, nearly 3 out of 5 adults own a smartphone which makes them soon to be the majority with a good chance that the number will only increase. Every demographic is represented in this number but the groups which have the highest overall adoption rate (60%) are college graduates, 18-35 year olds, and those with an annual household income of $75,000 or more.

Key Online Video Mobile Demographic: 18-34
Similar to the Pew study mentioned above, Nielsen also recently released new data confirming a similar demographic (18-34) leading the smartphone adoption rate (Source: Media Post). However, they have taken this data one step further and looked into the behavior of this group they call “Generation C” which take personal connections to new levels with their use of devices, apps, and social networks. They are also avid multi-taskers, checking email or social networks while watching TV, which supports past research noted in previous blogs.

Video Half of All Mobile Internet Traffic with Mobile to Surpass PC Internet Users
A quarterly report from Bytemobile indicates that video now accounts for half of all mobile traffic, which according to a TechCrunch article is also testament to the rise of smartphone and device usage. This report notes that Android is generating more ad volume than iOS devices, with tablets leading the way overall compared to smartphones in terms of video traffic. An eye opening piece of research conducted by Forrester indicates that currently one fifth of the world’s mobile population  are using the internet to go online. Global penetration of mobile internet users will exceed that of PC internet users by 2016, with emerging markets driving adoption levels.

Europeans More Responsive to Ads on Devices
Nielsen research also indicates that mobile is becoming a powerful commerce tool, facilitating consumer transactions and access to real-time information and deals. Twenty-nine percent of U.S. smartphone owners use their phone for shopping-related activities and more than half of mobile users are repeat visitors to daily deal sites (Source: Media Post). However, tablet and smartphone owners in Germany, Italy and the U.K. are more likely than American device owners to make a purchase online via PC after viewing an ad on their tablet or smartphone according to the Nielsen report, also suggesting the need for a cross-platform strategy as supported above and in past posts.

Mobile Commerce on the Rise
A December 2011 study of 4,000 mobile users in the United States and United Kingdom by mBlox, confirms the rise and interest in commerce trends. Their report indicated that 9 in 10 young adults between the ages of 18 and 24 spend one to five hours on their mobile phones each day, and 1 in 10 spend between five and ten hours on their mobile phones. One third would like brands to send promotions via smartphone or tablet, noting it is “extremely important” for there to be an “opt-out” option. This is promising news for advertisers and also supports Nielsen research above. Whether or not these smartphone and tablet users would then use the same device to purchase a promotion afterwards remains to be discovered by future research.

About Preview Networks

Preview Networks is a platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

Feb 23

Video by the Numbers

By Heather Timmerman Digital Media Trends Comments Off

Each February numbers from the last quarter of the previous year are released, analysed, and discussed and if you are comScore, January’s results from the current year are also released for a nice comparison. The type of numbers we are talking about aren’t financial (in the direct sense anyway) they are online viewership numbers, and in particular online video rankings and trends. As per usual, we take the opportunity to round up all these different facts and figures into one blog post to help compare and contrast and perhaps bring a little context to the trends.

Overall Numbers
2011 ended with 85.3 percent of the U.S. internet audience viewing video online in December. That translates to 182 million U.S. internet users viewing 43.5 billion videos. However, in January 2012 that number has decreased to 84.4 percent of the U.S. internet audience or 181 million U.S. internet users viewing 40 billion videos. Compared to the end of 2010 where the U.S. internet user number was 172 million and 30.1 billion video views, there is still a growth trend in year-over-year numbers (Source: comScore).

Device Trends
According to Ooyala’s Q4 2011 Video Index Report, non-desktop video viewership – or video on mobile, tablet, connected TV, and gaming console devices – doubled in Q4 compared to Q3. More specifically, tablets led the trend with 22% growth driven by users clicking “play” more often in addition to watching video longer (Source: VideoNuze). The data for this report was collected from 100 million viewers and 5,000 domains in over 130 countries.

Social Works
Another report published by Visible Measures focusing on social video campaigns in 2011 shows that online video on social networks works. Using their own data, the report shows that over 500 branded social video campaigns gained more than a million views each, and the average campaign received 765,000 views. This indicates the trend of brands using content-as-advertising by creating engaging and entertaining material (#2 on the Video Prediction Mashup for 2012). Using humour is key and launching on Thursday certainly helps as well (Source: ReelSEO).

2012 Forecast
comScore has released their 2012 U.S. Digital Future in Focus report and supplementary video which indicates trends in branded channels on platforms such as YouTube. This leads to a continued increase in user engagement, based on a 2010 to 2011 increase in user engagement of online videos by 43%. They also note that online video ads are actually 38% more memorable than TV ads, which supports the multi-screen/multi-platform trend we have reported in the past.  “comScore expects the number of videos viewed to continue to increase in 2012 with one of the primary driving reasons being an increase in quality, original, created for-the-web content syndicated across platforms.” To conclude, online video growth is still very positive, and only the channels and methods of viewing them will change throughout 2012.  To read the full comScore report, download it here.

About Preview Networks

Preview Networks is a platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

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