Prime time viewing is down, but overall TV viewing is way up. Nielsen looks at the innovations that are changing the way we consume video. Are we in a new golden age of television? All signs point to yes, says measurement specialist Nielsen, and online video has gotten us there. At the recent Streaming Media(…)
The US market for tablet usage is maturing, and nearly half the population will use such a device at least monthly in 2014, according to new figures from eMarketer. In 2013, 132.2 million US consumers used a tablet, and that number is expected to grow 11.3% this year to reach 147.2 million. Growth rates will(…)
Online Video Advertising Is Growing Many Times Faster Than TV, Search, And Most Other Digital Ad Markets
Online video is growing faster than most other advertising formats and mediums.
- Video ad revenue will increase at a three-year compound annual growth rte (CAGR) of 19.5% through 2016, according to our estimates.
- That’s faster than any other medium other than mobile. And much faster than traditional online display advertising, which will only grow at a 3% annual rate.
Here are some of the key trends we explore in the report:
- Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.
- Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100% year-over-year monthly growth during the year.
- Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up.
- Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats.
- Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the video ad market.
- Streaming devices and connected TV accounted for just 2% of online video ad views in the fourth quarter of 2013, but companies like BrightLine are experimenting with formats to grow this new niche market.
- The growth of mobile and digital video advertising has been paralleled by fundamental changes in the online advertising industry — programmatic advertising, which we covered in a recent report, has begun to reshape the entire digital ad market, including video.
- Newly launched video ad platforms have been among the companies to adopt programmatic tools, including real-time bidding, ad exchanges, and advanced analytics.
We all know that content is king on the Internet; and when it comes to types of content, it looks like video is at the top of the food chain. Video is everywhere online, from feature-length films, to sales pitches, to amateur videos of people at the zoo. Year over year, YouTube comes out with statistics showing staggering(…)