In a shifting landscape of video content consumption, how do content providers and advertisers reach their audiences? The good news is that video consumption is on the rise. Much like video did not kill radio, online and on-demand video will not kill TV or the distribution networks that deliver its content.
According to eMarketer’s recent report on US media consumption, overall daily media consumption has risen over 20% from 2010 to 2014. Looking at video only, the situation is more pronounced. While TV consumption has increased only 1% in that period, digital video consumption (online and mobile) has increased over 900%.
The horizon on this shifting landscape is far from clear, but these changes will have a lasting effect on advertisers and how they attempt to reach audiences through various video channels across multiple screens. The term ‘video content’ in itself is an indication that the worlds of broadcast, online, tablet, mobile and cable are on a collision course. What traditionally has been understood as programming is now just another form of digital content.
In April Adroit Digital (adroitdigital.com) conducted a study to ask viewers how they approach video consumption and their thoughts on video advertising. The random US survey secured 2,000 completed questionnaires among consumers of 18 years of age and older and owning a television, smartphone and laptop.
A strong 63% said that if an online provider could satisfy their broadcast TV viewing needs, they would cancel their cable subscription. 66% of 18-24 year-olds would cut the cable cord. This number decreases with those 45 and over at 51%.
68% of all viewers surveyed consume video from YouTube; 51% from live television broadcasts; and 49% are consuming video content from Netflix. 28% indicated they consume 15 or more hours of streaming video content through a game console or web TV device weekly.
According to the survey, 59% of respondents believe their TV set is transforming into an ‘overgrown monitor’ for their self-selected content viewing. 36% indicated that more than half of their video consumption is on-demand as opposed to live broadcast television – and 13% watch more than 75% of their video content on-demand.
68% of respondents would be more influenced by a short video than a text-based ad when seeking new product information. 56% indicated they skip online video ads most of the time. However, 20% don’t skip online video ads most of the time.
75% said that there is someone else in their home accessing video content at the same time they are via different devices, often or sometimes. Finally, 46% indicated 15 seconds are under as the optimal length for a video ad, with 35% saying the optimal length is 16-20 seconds.
The report states that currently, US advertisers spend in excess of $65 billion annually on television advertising. It’s a tried and trusted formula – but the shifting eyes and viewing preferences of consumers are forcing television advertisers to quickly define a unified digital strategy to keep up with viewers.
In order to place and account for their ‘digital dollars’, advertisers and content providers are going to have to scale a wall of technology solutions with which they are probably unfamiliar and ill-equipped to conquer on their own. Establishing a trusted measurement system to satisfy the advertisers who control the digital dollars is another giant challenge ahead.