IAB Digital Video Trends
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1 IAB Digital Video Trends Questions? Kristina Sruoginis Research Director, IAB
2 Online Video Is Mainstream: Roughly One in Four Americans Watch Regularly Adults and Males are more likely to watch Digital Video Usage of Streaming Video Types, Adults 18+ TV Online Amateur Video Original Digital Video 35% if include viewing content by title A18-34: 39% Males: 25% (Network TV shows online) (Created by regular people and looks and feels like it is home made) (Professionally produced video only for online distribution and viewing (not TV). 15% more US adults watch Original Digital Video than a year ago Q: About how often do you watch [TV shows online/amateur video online/original digital video] using any device (computer, smartphone, tablet, Internet-connected TV)? Q: Have you ever watched any of the following original digital video shows or visited their sites below? Base: Total Respondents 18+ (2013/2014) (N=2,425/2,388) 1 Source: IAB 2014 NewFronts Original Digital Video Consumer Study, Apr. 2014, IAB & GfK
3 Top Reasons Users Watch Digital Video TV Online: the ability to watch on my own schedule, fewer ads Amateur Video: content is funny or humorous Original Digital Video: watch on own schedule, video quality, good quality video Convenience, Own Schedule - Unique, Random, Comedy - Convenience, Professional, Production Values Less commercials than on the actual TV broadcast Can watch at my convenience The comedic aspect Random humor Very convenient. I can typically find what I want to see, when I want to see it. TV Online Amateur Original Digital Video These videos have a professional feel I like the accessibility of it. Easy to watch when I want to The originality and uniqueness to them High production values, good scripts and good actors Q14a/b/c. Overall, what do you like best about the experience of watching [video type]? Base: Viewer of TV shows online (n=614), Amateur (n=683), Original Digital Video (n=490) GfK 2014 IAB 2014 Original Digital Video Consumer Study April Source: IAB 2014 NewFronts Original Digital Video Consumer Study, Apr. 2014, IAB & GfK
4 Original Digital Video is Preferred over Primetime TV because of Original Content, Flexible Viewing Times and Fewer Commercials give Original Digital Video an advantage over Primetime TV What do you Like Better About Original Digital Video over Primetime TV? (Those who watch Original Digital Video at least once a month) 35+ Females 27% Original Digital Video better than Primetime TV because of New original content 17% Ability to watch on own schedule 13% Fewer commercials 9% A lot of them don't have commercials. They're like mini movies Unique and edgier Different content that would never make it to TV. Less censorship Convenience. I can watch digital video on the go on my iphone and whenever I want Q49. Lastly for this section, you told us that you watch both original digital video as well as primetime shows on regular TV. Comparing those, what do you like better about original digital video content when compared with primetime TV shows? Base: Viewer of Original Digital Video and Primetime TV (2013/2014)(n=298/322) Source: IAB 2014 NewFronts Original Digital Video Consumer Study, Apr. 2014, IAB & GfK GfK 2014 IAB 2014 Original Digital Video Consumer Study April
5 Online Video Advertising: Propulsive Growth Streamed video ads tripled over ,673,322 Total Content Videos Viewed (000) 52,374,583 35,235, % Total Video Ads Streamed (000) +211% 11,322,657 Total Video Viewers/Unique Streamers (000) 188,249 +4% 181,717 % YoY Change 12/12-12/13 4 Source: IAB Digital Usage Trend Report 2013: The Year in Review, Feb (ComScore VideoMetrix Dec. 12 Dec. 13, Computer only.)
6 Online Video Ads: Increasingly Ubiquitous As the medium matures, video ads grow: Video ads now account for 5.7% of all online video streaming time. Trend of Video Ad Minutes as a Percent of Total Time Spent Streaming Video Online 5.7% +193% 1.9% % Ads (Duration) % Change from Dec to date 5 Source: IAB Digital Usage Trend Report 2013: The Year in Review (ComScore VideoMetrix Dec. 12 Dec. 13, Total Audience, Home and Work. Doesn t include mobile.)
7 $734 Digital Video Ad Revenue: 3x Growth in Past 5 Years Video ad revenue continues its double-digit annual growth +39% YoY Growth FY $1, % YoY Growth FY US Digital Video Ad Revenue ($ Billions) Full Year and % YoY Growth $1, % YoY Growth FY $1, % YoY Growth FY $2, % YoY Growth FY $2,784 $1, HY 2014? 6 Source: IAB/PwC Internet Advertising Revenue Reports, Full Year
8 Online Video Growth Potential: Most Money Still on the Table More consumers are streaming more videos for longer, creating more inventory While digital video revenue has grown, it lags growth in consumer usage Video Usage Growth vs. Video Ad Revenue Growth 211% Potential For Growth 4% 35% 2013 Growth in Video Viewers* 2013 Growth in Videos Streamed by Consumers* 2013 Growth in Video Ads Streamed by Consumers* 19% 2013 Growth in Video Ad Revenue** 7 Source: IAB May 2014, *IAB Trend Report, 2013: The Year in Review, Feb (ComScore VideoMetrix Dec. 2013), **IAB/PWC 2013 Full Year and Q4 Internet Ad Revenue Report, Apr. 2014
9 Digital Video Can Sustain More Ads: Ad Weight < Television Only 6% of the streaming video hour consists of ads, compared to nearly one-quarter of TV hour Currently, online video serves one-fourth fewer video ads per content hour than TV TV % Ads by Duration Digital Video 24% (Commercials/Video Ads as a percentage of an average hour TV/OnlineVideo) % Commercials % Content 6% 74% 94% 8 Source: IAB Analysis, May 2014 (Nielsen TV Advertising and Audiences Report, May 2014), IAB Digital Usage Trend Report (ComScore VideoMetrix, May 2014)
10 Digital Video Growth Will Continue Marketer Bullishness > Television Percent of Respondents Who Will: Increase Maintain Decrease Spending Digital Video 65% to 65% Spend More in Video 34% 1% 25% TV 39% to Spend 39% More in TV 47% 14% Ad Spending: Next 12 Months Percent saying spending will increase, maintain, decrease Video: Q125: In the next 12 months, would you expect the amount of [your company s/your clients ] spend on the following types of advertising to increase, stay the same or decrease? Base: Respondents Involved in Digital Video (280) Agency (155) Marketer (125) Q125: In the next 12 months, would you expect the amount of [your company s/your clients ] spend on the following types of advertising to increase, stay the same or decrease? Base: Respondents Involved in TV (246) Agency (141) Marketer (105) 9 Source: IAB Digital Content NewFronts Video Ad Spend Study April 2014
11 New Online Video Spend Will Draw From TV 67% from TV 25% from Expanded Budget from Other 48% 33% 32% (Not Digital or TV) From Other Digital Digital Video Spending $$$$ Digital Video 48% 33% 32% 65% to Spend 65% 34% 1% More in Video Ad Spending, Next 12 Months Percent saying spending will increase, maintain, decrease Increase Maintain Decrease Spending Q130a. You mentioned that your spending on digital video advertising will increase in 2014 compared to Where will the funding come from for the increasing digital video advertising spend? Base: Respondents Whose Digital Video Advertising Will Increase in 2014 (182) Agency (108) Marketer (74) 10 Source: IAB Digital Content NewFronts Video Ad Spend Study, April 2014
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