YUME'S VIDEO ADVERTISING BLOG

Survey respondents were most likely to watch VOD through a set-top box.

With consumers around the world accessing content from multiple devices throughout the day, a recent study shed light on several key video viewership trends among people in the U.S., the U.K. and Canada.

QuickPlay Media surveyed surveyed more than 600 adults in each country and asked them about their Internet usage, video on demand viewing habits and device ownership. According to the study, more than 75 percent of respondents reported using IP-enabled gadgets to watch VOD.

More than two in 10 respondents the U.S. reported watching VOD on their smartphones and nearly one-quarter said they access such content on tablets. Mobile viewing among Canada and U.K. respondents wasn't as strong, but was still significant.

The U.S. also had a greater adoption rate of smartphones, game consoles and other streaming media services used to watch television programming and movies. However, more survey participants in Canada reported owning desktop computers and tablets. Meanwhile, consumers in the U.K. were the most likely to own set-top boxes and smart TVs.

When it comes to watching VOD, respondents were most likely use set-top boxes and computers. About 85 percent of respondents in each country said they watch television shows via VOD. In addition, while consumers expressed a preference for live TV for content like concerts, sporting events and news, most said they'd rather watch movies on VOD.

When asked about online video advertising, three in 10 U.S. respondents said they're more likely to react to an ad on a smart device than on TV. About one-quarter of U.K. and Canada participants agreed. One-quarter of U.S. consumers said mobile video ads are more appealing than TV commercials.

The study also shed light on the number of ads audiences are willing to watch. U.K. respondents were open to seeing the greatest frequency of video ads, as they expected to see about two ads per content clip.

U.K. consumers are 60 percent more like to interact with re-rolls.

Advertisers, content producers and brand marketers must constantly adopt to consumers' evolving digital engagement habits. New research from advertising analytics provider Exponential reveals pre-roll interactive video ads online are proving effective, especially in the U.K.

People want to interact with the text they're reading and the photos and videos they're viewing. Digital and mobile technologies have made content consumption a hands-on experience, and many brands have seen success by investing in interactive pre-roll ads. 

According to Econsultancy, Exponential found interactive pre-rolls – clips that include games, retailer locater functions or data entry - account for 72 percent of in-stream video ads in the U.K. That's twice the portion these ads occupy on the global scale, which is 36 percent.

Exponential based its data on more than 9,500 marketing campaign and nearly 13.5 billion impressions registered in 2012.

The company determined consumers in the U.K. are 60 percent more likely to interact with these pre-rolls than their counterparts around the world. In addition, 60 percent of all in-stream ads in the U.K. are viewed all the way through and 15-second video ads have an 18 percent higher completion rate than 30-second ads.

"It's tricky to say if Britons are simply more inclined to engage with ads or whether U.K. brands are delivering more relevant and engaging creative," said Niki Stoker, Exponential U.K. managing director. "Whatever the case, the figures are extremely encouraging for the U.K., particularly compared to the global picture."

Other additional findings from Exponential include:

  • Fast-food, or quick-service brands, like KFC and Dominos ran the most online video ads in the U.K. last year, representing 15 percent of all clips.
  • Finance and insurance held the second highest market share with 13 percent. They were followed by mobile, fast-moving consumer goods and alcohol, which occupied 10 percent each.
The majority of time spent using tablets is dedicated to apps.

Recent studies suggest more than 60 percent of U.S. cellphone users own smartphones and roughly one-third of all Americans own tablets. As mobile technology continues to play an increasingly central role in the way people consume content, a new report by Nielsen sheds light on cross-platform use today.

The fact people use multiple devices at once to access information and entertainment isn't new. It's a trend that's been developing over the past half-decade. However, as it strengthens, industry experts are noticing some changes to in the way people are watching television-like content.

Consumers watch more content than every before
The average consumer spends more than 42 hours each week consuming content on different screens, according to Nielsen. However, certain age and demographic groups watch video differently. While people older than 65 watch the largest amount of traditional television (49 hours and 21 minutes per week), younger age groups are more likely to use their computers and mobile devices to watch content. In fact, those ages 25 to 34 watch the most video on the Internet and on smartphones, which gives brands an idea of who their online and mobile video ads are reaching.

Between the the first quarter of 2012 and the same time one year later, the number of people in the United States who watch videos on their mobile devices increased significantly from roughly 36 million to about 45 million. 

Living in the age of mobile
According to "A Look Across Screens: The Cross-Platform Report," mobile app usage is a major pastime for modern consumers. Roughly 87 percent of time on smartphones in March 2013 was spent using apps, with women and men utilizing them for nearly 26 hours and 28 hours, respectively.

Meanwhile, tablet users are spending three-quarters of their mobile activity time on apps, with men spending more than 12 hours and women using more than 15 hours on these features. IPad apps are most commonly used in the afternoon and evening, with the amount of time spent on these devices increasing between the hours of 2 p.m. and 9 p.m., when tablet app use time usually peaks.

Streaming video remains a common habit among smart device users. Tablet owners spend nearly two hours of total time using apps to watch video and smartphone owners dedicate 1 hour and 15 minutes for the same purpose.

As consumers rely more heavily on various screens throughout the day, brands can reach target audiences by investing in a variety of multichannel marketing strategies, including Internet and mobile video advertising.

Video ads online can be a reliable source of revenue for newspapers.

With the majority of consumers accessing news, entertainment and other content via the web, brands aren't the only ones benefiting from online video advertising. While the marketing tool helps companies target audience members more effectively on multiple platforms, they can also serve as a major source of revenue for publishers. In fact, new research suggests video ads online may help media outlets that are struggling financially regain their footing.

Associate Professor Steven Bellman, PhD, the deputy director of the Audience Labs at Murdoch University in Australia, recently stated that Internet video advertising can help news sites stay afloat.

Based on his study of online content consumption among average Internet users, Bellman stated people tend to have a positive attitude toward video ads.

"For years, we've heard the argument that people won't tolerate ads in online content and will jump sites to ad-free content or will download illegally, but our research on web-based video viewing shows that people will accept a certain number of ads," Bellman said, according to Murdoch University.

His research, "Getting the Balance right: Commercial Loading in Online Video Programs" found one ad per video break boosts ad recall and often isn't perceived disruptive. In fact, Bellman noted that study participants only rated these ads intrusive if they viewed 10 or more 30-second promotional clips per hour. The associate professor stated the ideal video ad online rate is six 30-second clips per hour.

He explained that while TV viewers are used to the "clutter" of commercials, the Internet is much more organized space where users don't expect as many distractions when watching shows and movies.

While many newspapers have turned to paywalls to face the dwindling rate of print subscriptions, Bellman suggested this revenue method may only work for major national and international news sources.

"With broadband, newspaper content online is looking more and more like TV, perhaps it's time for outlets to test the waters of showing TV ads that interrupt online content," he said.

Digital advertising is expected to outpace print in 2015.

Total spending on digital advertising reached a record $9.6 billion during Q1 2013, up 15.6 percent from $8.3 billion reported during the same three-month period last year, according to the Interactive Advertising Bureau and PricewaterhouseCoopers.

As more consumers turn to the Internet to communicate with others, perform their jobs and access information, it's no surprise that advertisers have followed suit. Brands have the opportunity to reach consumers with sophisticated and interactive online video ads, social media ads campaigns, paid search and display ads and other opportunities offered in the digital sphere.

"Consumers are turning to interactive media in droves to look for the latest information, to connect with their social network and simply to be entertained," said Randall Rothenberg, president and CEO of IAB. "This first quarter milestone clearly illustrates that marketers recognize that digital has become the go-to medium for all sorts of activities on all sorts of screens, at home, at the office and on the run."

David Silverman, a partner with PwC U.S. noted the growth rate in Q1 is demonstrative of the long-term expansion of digital advertising budgets among American brands, which has increased consistently over the past decade.

Online news source MediaPost noted these findings are also consistent with those of separate research conducted by ZenithOptimedia, which predicted Internet advertising will increase 14.4 percent in 2013. In addition, the media analytics provider expected digital advertising to increase its share of total ad spending from 18 percent in 2012 to about 23 percent in 2015, outpacing investments made in print advertising.

ZenithOptimedia predicted Internet video advertising to surge 30 percent per year in the near future, suggesting the medium will continue to play an important role in multichannel marketing strategies.

YuMe Debunks Myths Alongside LG, MediaStorm and Net2TV

At Today’s Videonuze Ad Summit in NYC, leaders in the industry addressed several myths floating around CTV and video advertising. Panelists included Wendell Wenjen of LG, John Collins of MediaStorm, and YuMe’s very own Christie Hartbarger; the panel was moderated by Tom Morgan of Net2TV. Debunking the Myths of Video Advertising and Connected TV (CTV) discussed how CTVs are helping to drive online video delivery into the living room and why media buyers should pay attention to this growing trend now.

Common myths around CTV and video advertising:

  • CTV has no scale
  • On CTV everyone is just watching Netflix
  • Only young men are using CTV
  • CTV ads are mostly pre-roll
  • Campaign learning’s are too limited

Click here to check out the full presentation!

Alcohol video ads are soaring online.

While automakers and retailers have become avid users of online video advertising, a new report sheds light on the marketing tool's potential to uncork success for alcohol makers. With more consumers watching short- and long-form content online, it comes as little surprise that Internet video ads can effectively reach audiences targeted by the beer and spirits industries.

Alcohol brands reap the benefits of online video advertising
"Untapped Potential: The State of Sharing in the Alcohol Sector" measured the success of video ads online by counting how many social shares they received. The report, conducted by social media analytics provider Unruly, found 97 percent of social shares among alcohol makers came from just four ads in Q1 2013. More than half, or nearly 60 percent, came exclusively from Budweiser's Super Bowl "Brotherhood" video, which became a viral success immediately after its broadcast during the game. The three other ads were "Bad Motherf***er" by Nef Vodka, Carlsberg's "Puts Friends to the Test" and "The Candidate," created by Heineken.

Overall video sharing in the alcohol industry increased 1,593 percent between Q4 2012 and Q1 2013. In addition, alcohol brands accounted for nearly half of total fast-moving consumer goods/consumer packaged goods, resulting in a 78 percent quarter-on-quarter increase in the alcohol sector.

The research found that the growing use of Internet video advertising among spirit distributors has weakened beer makers' dominance over the platform as a marketing tool. In Q1 of 2012, beer companies share of voice was 97 percent, which declined to 75 percent one year later.

Among distributors, Anheuser-Busch InBev, which makes 46 beers including Budweiser, Leffe, Beck's, Stella Artois and Michelob, increased video shares by 8 percent between the end of 2012 and Q1 2013. The top 10 alcohol ads during the first three months of 2013 were an average of two minutes and 16 seconds long, while on video featuring Beck's Sapphire lasted only 30 seconds.

Room for growth
Unruly noted that while alcohol brands are making good use of online video advertising, they still have an opportunity to expand such efforts.

"For wine and spirit brands, the opportunity to increase brand awareness and sales conversion rates through social video in a way that that is socially responsible and meets LDA (Lobbying Disclosure Act) requirements is huge, as there has been very little mass movement from these brands in creating shareable video content" said Ian Forrester, Unruly insight director.

Online video advertising in cars?

Posted on Jun 1, 2013 by YuMe

General Motors may bring online video advertising into its vehicles.

As mobile technology grows increasingly sophisticated, consumers are able watch both long- and short-form content from nearly any location. While this trend allows brands to connect with smartphone and tablet owners with video advertising on mobile, recent developments suggest streaming media on the go is reaching new capacities, with General Motors considering bringing infotainment into its cars.

Putting entertainment platforms in vehicles is not new, but many  consumers are demanding systems that are more-user friendly and sleek. According to Reuters, GM's Chairman and CEO Dan Akerson is pushing the company to bring online video advertising and other marketing tactics into cars.

The auto giant stated it expects to incorporate more Internet capabilities into its vehicles starting in 2015. Such technology is expected to allow back-seat passengers to watch streaming content. 

GM will reportedly charge $20 per car owner who signs up for online access in their vehicles. Company officials have likened the experience to the simplicity of using a smartphone to watch videos.

"People want to walk into their car and have it behave just the way the little piece of metal that fits in their pocket can do," Alexander Edwards, president of research firm Strategic Vision, told Reuters.

In-car tech capabilities already allow drivers to monitor traffic, look up directions and make calls and send text messages via voice activation. Providing passengers with the ability to watch news and other media builds off of these capabilities.

Analysts at Citi Research predict at least 40 percent of cars will be connected to the Internet by 2020, Reuters stated.

Akerson told the news source GM is going beyond just offering a medium of transportation.

"We do want to change this from primarily a safety and security business to one that is much more feature-rich," he said.

Roku aims to expand its software.

With a growing number of people streaming video on their television screens, more tech companies are jumping on the trend. While companies like Netflix, Hulu, Amazon and Wal-Mart are competing to provide the best content, device makers are striving to offer the best viewing tools. As the market expands, brands are finding online video advertising allows them to reach a wider consumer audience.

Recently, set-top box manufacturer Roku announced it just sealed $60 million in funding from investors to jumpstart its video streaming software. Media company Hearst and one unpublicized entity are behind the investment, which is also aimed at creating stronger partnerships between Roku and content providers. 

TechCrunch explained the company's software plans go beyond just offering an affordable set-top box. The company has its eyes on the smart TV market, which is still slight but growing. While an actual Roku television may not be in the cards, devices like Apple TV and XBox One demonstrate the demand for all-in-one entertainment platforms. Both systems provide users with more than just video streaming options.

In a recent statement, Roku claimed it streamed more than one billion hours of video and music in 2012 alone. In addition, the company said its working with 24 original equipment manufacturers, most of which are television makers.

"Roku has a significant portfolio of investment and strategic partners with very successful global businesses," said founder and CEO Anthony Wood. "Their recognition of our brand success and belief in the Roku platform is a tremendous endorsement of our potential to shape the future television experience."

The heated competition in the streaming world demonstrates just how much consumers are watching content online. During April alone, 181.9 million Americans watched 38.8 billion videos on the Internet. Such a trend suggests online video advertising is extremely beneficial for brands and publishers alike.

Tablet shipments are expected to outpace PC sales by 2015.

The streaming service market is skyrocketing. As more consumers turn to the Internet on their mobile devices to access television programming and web-exclusive video, more content providers are entering the scene. As a result, advertisers and brands are benefiting from the ability to reach a wider audience with online video ads online and on mobile. In fact, the marketing potential behind the platform is only expect to grow, as streaming video is expect to represent the majority of all mobile data traffic by 2017, according to a new forecast.

Half of mobile traffic will be video
IT networking analysis provider Cisco recently released its "Visual Networking Index: Global Mobile Data Traffic Forecast 2012-2017," which stated video was responsible for more than half of all mobile traffic at the end of 2012. That portion is expected to increase to 66 percent by 2017. The company states faster Internet speeds will make video viewing more prevalent among consumers, with the amount of streamed content exceeding that of side-loaded videos on smartphones and tablets.

Between 2012 and 2017, mobile video will grow at a compound annual growth rate of 75 percent, the highest predicted among any mobile application, including Facebook, Twitter and other currently popular apps.

"The next five years are projected to provide unabated mobile video adoption despite uncertain macroeconomic conditions in many parts of the world," Cisco's report stated. "…New partnerships, ecosystems and strategic consolidations are expected as mobile operators, content providers, application developers and others seek to monetize the video traffic that traverses mobile networks."

Will mobile replace the PC?
As mobile device technology grows more sophisticated, cheaper options are entering the market, making tablets more accessible to consumers. In fact, according to a separate report by International Data Corporation, tablets could become more popular than PCs in the coming years.

IDC forecasts tablet shipments will grow nearly 59 percent year over year in 2013, reaching almost 230 million units, up from about 145 million in 2012. In addition, tablet shipments are expected to surpass those of PCs – both laptops and desktops – by 2015.

"PCs will have an important role in this new era of computing, especially among business users," said Ryan Reith, program manager for IDC's Mobility Trackers. "But for many consumers, a tablet is a simple and elegant solution for core use cases that were previously addressed by the PC."

The price and practicality of tablets is making them extremely popular among streaming audiences, suggesting brands should capitalize on mobile video advertising to reach potential customers.