Billions of people around the world find themselves constantly connected to the web. Internet speed and capabilities are growing so quickly that in quarter four 2012, viewers watched live video 18 times longer on desktops, five times longer on tablets and four times longer on smartphones than via video on-demand, according to a recent report, Global Video Index: 2012 in Review.

Streaming is up and advertisers are taking note
The internet continues to have a drastic impact on traditional television broadcasters, networks and advertisers. As more people choose to stream content online rather than watch it on live TV, analysts believe internet content consumption will redefine how both viewers and brands approach video content, Wired states.

In 2012, the number of hours spent watching streaming video on tablets and smartphones increased 100 percent over the previous year, according to the report. In addition, roughly one-third of the time spent watching content on tablets were premium, long-form videos that lasted more than 60 minutes during the fourth quarter.

Many brands have already capitalized on users' migration towards sites and services like Netflix and Hulu and more are adapting quickly to video advertising on the web. Video ads online grew 91 percent between the beginning of 2012's fourth quarter and mid-December. In addition, U.S. ad spending on steaming content increased 46 percent to $2.96 billion last year, according to Wired.

Reaping the benefits of online video advertising
Companies that advertise online are realizing the benefit of knowing more than just how many people their commercial was broadcasted to. With the right data analytics, they can also determine how many consumers watched the ad entirely in addition to the particular traits of target audience members' consumer behavior.  

"The traditional business model for advertising on television is being turned over," media research analyst Jim O'Neill told Wired. "It hasn't reached the end of its life yet, but the business model is going to change, and the amount of choice online will mean that [marketers will] have a smaller, but more loyal, audience watching their content.

The rate at which streaming content is growing has created a significant audience of viewers who watch videos online only. O'Neill gave the example of his sons who recently graduated from college and don't have plans to purchase cable service. Instead, they rely completely on their laptops for video entertainment. 

While television is nowhere near extinction, brands should keep an eye on the increasing population of online viewers to ensure they're investing in video advertising online effectively.