Online Video Advertising
Smartphone screens should be the primary medium for reaching today’s college students, a new study says, as the demographic group is more prone that other smartphone users to cite their mobile phone as the place where they see relevant ads (28% vs. 22%).
Facebook, looking to leverage its strong ties with Millennials using mobile devices, Sunday introduced a quad-play of new advertising products that it hopes will convince brands spending on TV ads to move some of that cash to the social media site.
Ooyala’s Q2 2015 Global Video Index showed that nearly half of all video plays and ad impressions for publishers occurred on mobile devices.
In the latest Index, released today, Ooyala said 44% of all video views in the quarter were on mobile devices, an increase of 844% since the second quarter of 2012, and a compound annual growth rate that exceeds 110%.
Hulu is pulling the trigger on an ad-free service designed to compete more directly with Netflix, but it comes at a price: $11.99 a month, $4 more than the $7.99 alternative Hulu offers with “limited commercials.”
Yet another report is predicting linear TV viewing will nosedive in coming years as more consumers turn to online and mobile video for their entertainment.
ZenithOptimedia forecasts a 23% increase in the amount of time people will spend consuming online video daily in 2015, and an additional increase of nearly 20% in 2016.
More viewers are switching to content not supported by advertising, creating more problems for traditional content companies as well as for the segment of the entertainment industry – specifically broadcasters – that rely heavily on ad revenues.
Late last week, rumors emerged that Hulu was considering adding an ad-free option to its streaming service.
The Wall Street Journal, citing unnamed sources, said Hulu could debut the service later this fall, with a price of between $12 and $14 per month, more than Netflix, Amazon Prime Instant Video, Showtime and in line with HBO Now.
Hulu already operates a paid tier (originally known as Hulu Plus, an $8 a month service) and a free, Basic Hulu.
The number of homes in the Asia Pacific region with subscription video on demand services is forecast to reach 68.8 million by 2020, four times as many as there were in 2014.
A report from Digital TV Research predicts Japan, which had 7.9 million SVOD HH in 2014 will expand to 9.9 million by 2015 and 20.5 in 2020, maintaining its position as the largest market in the region.
South Korea, with 6.8 million SVOD HH is expected to grow to 10.2 million by 2020.
Change continues to roil the U.S. advertising industry as a new report from Kantar Media this week said ad expenditures among the Top 10 ad-spending companies was down nearly 11% in the first quarter and that ad spend among all companies was down 4% to $37.4 billion.
That retreat mirrors spending in all of 2014, when the 10 largest advertisers in the U.S. cut their ad spend 4% to $153.3 billion from nearly $160 billion.
Global OTT revenues could nearly double between 2015 and 2020 to more than $51 billion, driven by faster-than-anticipated subscription video on demand growth, much of it from Netflix. Global revenues, which were just $4.2 billion in 2010, are expected to reach $26 billion in 2015.
SVOD revenues in the United States have rocketed in the past decade. In 2010, revenues stood at $753 million; by 2020, that will rise to more than $6.5 billion, an increase of 765%.
Amazon may be planning to launch live video shows, if a job listing for the etailer is any guide.
USA Today reports Amazon has posted a job listing on LinkedIn and Amazon.com for “a seasoned television producer to help us produce and run a daily live show." The listing says the job will be part of a “new business initiative to leverage video as a medium to drive product sales on Amazon,” which sounds an awful lot like a home shopping network show.
A new initiative from five major broadcasters will deliver live and on-demand local TV news over-the-top, a move that – more than anything else – targets mobile-happy Millennials who already get much of their daily news online.
Walt Disney’s ABC Owned Television Station Group, Cox Media Group, Hearst Television, Media General, and Raycom Media will pool resources to create NewsOn, which will be available through apps on mobile devices and connected TVs.