online video - Adroit Digital
Transcription
online video - Adroit Digital
ONLINE VIDEO LOOK WHO’S WATCHING NOW A SNAPSHOT OF HOW CONSUMERS INTERACT WITH ONLINE VIDEO CONTENT AND ADVERTISING adroitdigital.com Contents adroitdigital.com Introduction 3 Objectives & Methodology 4 Major Findings 5 Demographics 6 Survey 7 Conclusion 18 About Adroit Digital 19 Contact Us 19 ONLINE VIDEO Introduction On August 1, 1981, MTV aired its first video, The Buggles “Video Killed the Radio Star.” Fast-forward to 2014 and radio is still very much alive and well, although it has transformed. Interestingly, both radio and video (broadcast/cable television) are currently undergoing what some might call radical changes. Digital entrepreneurs and the rapid consumer adoption of new technologies have driven both of these advertising mainstays onto the Internet, and not by their choice. Radio and the music publishing industry saw the first shot come across their bow with Napster. Broadcast and cable TV now have a similar situation on their hands with the likes of Aereo and other innovative content providers and over-the-top (OTT) devices. The impact of this shift is so profound that the United States Supreme Court will soon rule on how copyright protected video content can be distributed. This represents a potentially major blow to broadcasters—specifically related to their revenue stream from royalties, distribution fees, and advertising. However, this may turn out to be a major win for consumers. They will find themselves squarely in the driver’s seat when it comes to what, when, and where they’ll consume their audio and video content, including how they’ll pay for it and the amount of advertising to which they choose to be exposed. In this shifting landscape, where does this leave broadcasters/content providers and the advertisers that depend on them to reach their audiences? The good news for advertisers is video consumption is on the rise. Much like video didn’t kill the radio star, online/on-demand video won’t kill network television or the distribution networks (cable, satellite, and local affiliates) that deliver their content. According to eMarketer’s recent report on US media consumption, overall daily media consumption has risen over 20% from 2010 to 2014. When the focus is narrowed to video only, the story is more dramatic. While TV consumption has grown slightly over 1% in the same period, digital video consumption (online and mobile) has increased over 900%* (this with the caveat that the starting data point is very small). According to eMarketer, “Americans own more devices than ever before, and they are spending increasing amounts of time with them collectively.”* These devices have opened up an entirely new space for simultaneous media usage. From an overall major media perspective, this all becomes a game of dollars and cents. Who will win the race is far from being determined. But these changes will have a lasting effect on advertisers and how they approach reaching audiences through various video channels across multiple screens, all enabled by new technologies. adroitdigital.com ONLINE VIDEO 3 Objectives & Methodology To gain insight into how consumers view online video content and advertising versus broadcast television, Adroit Digital conducted a study to ask viewers how they approach video consumption and their thoughts on video advertising. The insights gained in the survey are meant to assist agencies and brands in evaluating how their current video strategy and offering align with how consumers watch video content in the multi-screen universe. The study was fielded from April 17 through April 21, 2014. The survey targeted a random sample of United States consumers who self-identified as 18 years of age or older and owning a television, smartphone, and personal computer or laptop. The study garnered 2,000 completed surveys. adroitdigital.com ONLINE VIDEO 4 Major Findings • 63% of our respondents said that if an online provider could satisfy their broadcast TV viewing needs, they would cancel their cable subscription. Men appear to be more likely to cut the cord than women, 67% compared to 57% respectively. 66% of 18–24-year-olds would cut the cable cord. This number decreases with those 45 and over at 51%. • 68% of respondents would be more influenced by a short video than a text-based ad when seeking new product information. 70% of men compared to 64% of women, and 72% of those 18–24 compared to 62% of those 45 and over, would be more influenced by a short video compared to a static or text-based piece of content. • 68% of all viewers surveyed are consuming video content from YouTube; 51% are consuming video content from live television broadcasts, and, almost equal to TV, 49% are consuming video content from Netflix. Women are bigger Netflix viewers than men, 56% to 43% respectively. • 51% of all respondents indicated when watching a 30-minute recorded or on-demand program that they are more likely to watch the entire program including commercials than not. • 59% of all respondents believe their TV set is transforming into an overgrown monitor for their self-selected content viewing. Men and young adults have a stronger belief in this transformation than do women or older adults. 69% of men believe their TV is becoming more like a monitor for self-selected programming compared to 51% of women. 63% of those 18–24 believe the same. It is only in the 45+ age group that the minority, 47%, holds this belief. • 36% of all respondents indicated that more than half of their video consumption is on-demand as opposed to live broadcast television. 13% of all respondents watch more than 75% of their video content on-demand. 35% of 18–24-year-olds compared to 32% of those 45 and over are consuming more than half of their video consumption from an on-demand source. • 56% of all respondents indicated they skip online video ads most of the time. However, 20% don’t skip online video ads most of the time. 24% let the online video ad content determine if they would skip the ad. • 75% of our respondents indicated that there is someone else in their home accessing video content at the same time they are via different devices oftentimes or sometimes. 30% indicated there are often others viewing at the same time they are. • 46% of respondents indicated 15 seconds or under as the optimal length for a video advertisement. 35% indicated the optimal length to be 16 to 30 seconds. The minority, 19%, believed 31 seconds or over was the optimal length. • 28% of respondents indicated they consume 15 or more hours of streaming video content through a game console or web TV device weekly. When it comes to power-watchers (those watching 15 hours or more of streaming video content per week), those ages 35–44 are the largest consumers of streamed video at 33%. adroitdigital.com ONLINE VIDEO 5 Demographics Gender 43% 14% 57% 34% Male Female 15% 18–24 25–34 35–44 45+ N 77% 37% AGE 4% 34% 70% Women 56% 14% 51% 34% 49% 15% Men 28% Women 32% 30% 18–24 25–34 35–44 45+ 25% Men 43% Male Female 68% 10% 30% 22% 37% 18–24 25–34 35–44 45+ Less t 1 to 10 10 to 3 More 18–24 16% 35+ 5% MEN 25% WOMEN 38% 35–44 35% 10% 37% Ne tfli W x (Ap eb Y ple enab ouT Ro TV, led ube k Ot u, gaChromdevic her e m on e co ecast nso , line le str eam ) souing rce DV R Liv e te lev isio n 30% 10% 30% 18–24 16% Base: n=2,000 Sums may not equal 100 due to rounding 35+ 5% MEN 25% adroitdigital.com 18–24 Less than 1 minute 1 to 10 minutes 10 to 30 minutes 30% Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes Less than 1 minute ONLINE VIDEO 6 30% Ne tfli W x (Ap eb ple enab YouT Ro TV, led ube k Ot u, gaChromdevic he r e m on e co ecast ns , line str ole) eam souing rce Liv e te lev isio n DV R 30% TO TV OR NOT TV, THAT IS THE QUESTION How many hours do you spend per week consuming online or streamed video content through a game console or web TV device (Apple, Roku, Chromecast)? 43% 57% 5–15 35% Men 38% Women 35% 17% 15–30 18–24/45+ 24% 11% 40% Male Female 37% 15% 35–44 33% 77% 24% Women 56% 70% 51% Most of the time I skip it From which sources do time youIconsume Most of the don’t skip it 10% video content? Depends on the ad 30% may be well-advised to spread their video Advertisers 64% broadcasts. advertising dollars outside of live18–24 television 35–44 50% 25–34 24% 68% of all viewers surveyed are consuming video 18–2451% content from YouTube; 16%are consuming video content from live 35+ television broadcasts; and 49% are 5% consuming video content MEN from 25% Netflix. Men 43% Women 32% 25% 22% tfli 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com Less tha 1 to 10 m 10 to 30 More th However, 30% when it comes to Netflix and DVR content, there is a marked difference between women and men. Women are heavier viewers of Netflix, 56% compared to 43% of men. Women more than men are also using DVRs 30% as a video 28% respectively.70% Less than content 1 minutesource, 32% 10 to to 30 minutes 40% x (ApWeb ple enab YouT Ro TV, led ube k Ot u, gaChromdevic her e m on e co ecast nso , line le str eam ) souing rce WOMEN 38% Men and women select video content from different 35–44 35% sources. They both indicated approximately the same 30% level of consumption for live television. Ne Men 28% 37% IS BROADCAST TV READY TO SHARE THE SPOTLIGHT? 68% 49% DV R 51% (those When49% it comes to power-watchers watching 15 hours or more of streaming video) by age group, those ages 35–44 areWatch in the largest weekly consumers of streamedentirety Skip through video at 33%. Both the youngest respondents, ads ages 18–24, and the oldest respondents, age 18–24 45 and over, fell on the lower end of the 25–34 power-watcher scale at 24% each. 45+ 53% 35–44 It appears all eyes are on streaming video. 45+ The question is, are advertisers keeping their eyes on the ball? 56% 30%20% Liv e te lev isio n Men are more likely than women to consume between five and fifteen hours weekly of streaming content, 38% to 35% 14% respectively. 34% 0–5 30+ Less than 1 minute 10 to 30 minutes 28% of respondents indicated they consume 1fifteen to 10 minutes than 30 minutes or more hours a weekMore of streaming video content through a game console or web TV device. 13% 20% 1 to 10 minutes 30% More than 30 minutes By m With or fam 37% ONLINE VIDEO 7 18–24 25–34 35–44 45+ 37% IT’S ALL ABOUT TIMING Women 56% 70% 51% How long do you spend watching any one piece of video content on average? 68% 10% 49% Men 43% Women 32% 30% Men 28% 30% 25% Less than 1 mi 1 to 10 minute 10 to 30 minu More than 30 18–24 16% 35+ 5% 22% MEN 25% WOMEN 38% 35–44 35% 30% Ne tfli W x (Ap eb Y e o ple nab uT Ro TV, led ube k Ot u, gaChromdevic her e m on e co ecast nso , line le str eam ) souing rce DV R Liv e te lev isio n 30% Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes When it comes to how long a viewer will watch any one piece of video content, the answer seems unclear for advertisers as to what should be the optimal length for engagement. Men 38% 5–15 Women 35% 17% 15–30 30+ 18–24/45+ 24% 11% 40% 35% 0–5 37% Our survey respondents indicated a fairly even spread across how long varying lengths of video content hold their attention. The 49% 51% majority of all respondents were split into thirds across categories from 1 minute to more than 30 minutes. The minority, 10%, stop Watch in viewing in less than one minute. entirety Skip through Women are more likely than men to consume one piece of video ads content for more than 30 minutes with 38% compared to 25%. 35–44 33% 24% 18–24-year-olds indicated the greatest likelihood to tune45+out 53%in under sixty seconds at 16%. This number drops to 5% in those 35 years of age and older. 56% Those respondents 35–44 seem to have the greatest interest in staying tuned in. 35% of this group indicated on average they will watch a single piece of video content for more than 30 minutes. Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com Most of the time I skip it Most of the time I don’t skip it ONLINE VIDEO 8 Men Less than 1 minute 1 to 10 minutes DV R Liv e te lev isio n Women 32% Men 28% 49% 35+ 5% 51% MEN 25% WOMEN 38% Watch in entirety Skip through 30% ads 35–44 35% ix (ApWeb ple enab YouT Ro TV, led ube k Ot u, gaChromdevic her e m on e co ecast nso , line le str eam ) souing rce 35%10 to 30 minutes Men 38% More than 30 minutes Women 35% 37% 11% JUST SKIP IT Most of the time I skip it Most of the time I don’t skip it 49%on the ad 51% Depends 17% 18–24/45+ 24% 35–44 33% 40% 24% If given the option to skip anMenInternet 38% 5–15video ad, how often do you Womenskip 35% it?37% 56%Watch in 18–24 64% entirety Skip through ads 35–44 50% 15–30When20% it comes to online17% video ads, our respondents 33%than they 18–24/45+to appear to be more willing bypass35–44 an ad 24% 30+are with recorded/on-demand 11% content. 49% 40% Less than 1 minute 1 to 10 minutes 24% The only group that indicated they skip ads15–30 the 56% majority of the time are those aged 45 and over, at 53%. 30+ 35% Les Less than 1 minute 1 to 1 to 10 minutes 10 t Mo 18–24 16% 45+ 53% When asked if our respondents watch commercials or skip them while viewing a recorded/on-demand 0–5 show, the majority, 51%, said they watch the show in its entirety, including commercials. 5–15 0–5 30% 30% Ne tfl DV R n 11% 30% 37% For all the conjecture that no one watches 17% our respondents seem commercials anymore, 35–44 33% 18–24/45+ 24% to indicate otherwise. lev isio 30+ Women 35% Liv e te 15–30 Are you more likely to watch a 25% 30-minute recorded/on-demand22% show in its entirety including ads, or are you more likely to skip35% through ads and watch the recording in segments? Men 38% 40% 5–15 Men 43% THE AUDIENCE IS SPLIT 0–5 10 to 30 minutes More than 30 minutes 10% 49% 30% Wom 68% Ne tfli x (ApWeb Y ple enab ouT Ro TV, led ube k Ot u, gaChromdevic her e m on e co ecast nso , line le st r eam ) souing rce 51% (ApWeb pl ena Ro e TV, bl k OtWomenu, gaCh her 56%me on line s Liv e 70% 25–34 24% Most of the 45+ 53%Most of the Depends o 56% of all respondents indicated they skip online video ads most of the time. However, 20% don’t skip online video ads most of the time. 35–44 20% 25–34 24% 40% 18–24-year-olds are24% most likely to skip online video 56% ads most of the time, 64%, and those age 35-44 are 8am–12pm least likely to skip online 13% video ads most of the time at 50%. 12pm–4pm 20% 30% 8pm–12am 37% Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com 12pm–4pm 4pm–8pm 8pm–12am 18–24 64% 13% 35–44 50% 25–34 24% By myself With friends or family 40% 8am–12pm 20% 70% Most of the time I skip it Most of the time I don’t skip it Depends on the ad Adults 25–34 are the age group least likely to skip online4pm–8pm video ads most of the time at 24%. 30% 20% 30% 37% ONLINE VIDEO 9 56% 35–44 50% 20% LET THE VIEWING BEGIN 20% When asked what time of day our respondents are most likely to consume video content, over two-thirds, 67%, said they are most likely to consume video content from 4pm to 12am. 12pm–4pm 13% 18–24 64% 35–44 50% 25–34 24% 13% 8am–12pm 20% 12pm–4pm 4pm–8pm 30% 8pm–12am 37% ONE IS THE LONELIEST NUMBER20% 30% 70% 4pm–8pm Are you more likely 30% to be By myself With friends or family consuming video content by 37% such yourself or with others as friends or family? 45% Men 32% 70% of our respondents usually consume video content by themselves. 30% like to share their video moments with friends or family. 45% 27% 30% 37% 50% 37% 50% Viewing video content seems to be a one-man or one-woman show. 63% Women 8pm–12am 30 40% 8am–12pm Most of the time I skip it Most of the time I don’t skip it Depends on the ad 40% What time of day are you most likely to consume video content? 25–34 24% 16% Men 32% 9% MEN 67% 9% 50%18–24 66% adroitdigital.com 41% 32% 25–34 39% WOMEN 45% Rar ely Ne ver s me eti s Som Of t ent ime 45+ 51% 35% Base: n=2,000 33% 59% 45+ 42% WOMEN 57% 35–44 41% 16% Yes MEN 41% Women No 18–24 36% 27% Of t ent ime s Som eti me s Rar ely Ne ver 30% 33% Sums may not equal 100 due to rounding 31% 31% ONLINE VIDEO 10 20% HOME ALONE? 40% Online media consumption is driving advertisers toward video ads Are there other people in your home accessing video content at the same time you are from different devices? 13% 8am–12pm When it comes to a multi-screen, multi-room viewing 12pm–4pm 20% household, are there several video screens running at any given time? 4pm–8pm 75% of our respondents indicated that there is someone 8pm–12am else in their home accessing video content at the same time they are via different devices sometimes or oftentimes. 30% indicated there are often others viewing at the same time. 30% 37% It appears men are more likely to have viewing companions in the house compared to women, 32% and 27% respectively. 50% Men 32% 45% Women 27% 30% 16% Rar ely Ne ver s me eti s 50% MEN 41% ONLINE VIDEO 24 36% 25–34 39% adroitdigital.com N 45% Base: n=2,000 Sums may not equal 100 due to rounding 11 35–44 41% Som Of t ent ime 9% 30% By myself With friends or family 37% 8pm–12am CABLE CAN GO If you could have all your broadcast TV needs satisfied with an online provider like Aereo/ 50% SkitterTV/NimbleTV, would you cancel your 45% cable subscription? 37% 63% 27% Men 32% The worlds of video and broadcast TV are rapidly evolving. With more viewing options being introduced to consumers every day, the need for a cable subscription for viewing may become much less of a priority. 30% 63% of our respondents said if their broadcast TV needs could be satisfied by an online provider, they would cancel their cable subscription. 16% Women No Yes MEN 67% Men appear to be more likely to cut 9%the cord than women, 67% compared to 57% respectively. WOMEN 57% 18–24 66% Rar ely Ne ver s me eti s 45+ 51% Som Of t ent ime It’s possible our youngest respondents, 18–24, are more likely than our oldest respondents, 45 and over, to view cable as less of a priority. 66% of 18–24-year-olds would cancel their cable. This number decreases with those 45 and over at 51%. 35% 33% 31% 31% 59% Yes No 45+ 42% 35–44 41% 18–24 36% WOMEN 45% 25–34 39% 50% MEN 41% 41% 33% 32% 21% MEN 69% WOMEN 51% 18–24 63% ess out do ors Au tom oti Foo ve da nd win e Life Ne ws and style cur re eve nt nts fitn and Base: n=2,000 Sums may not equal 100 due to rounding rts alth Spo adroitdigital.com He Fas h ion and and b ea uty 45+ 47% ONLINE VIDEO 12 Wo 16% MEN 67% 9% WOMEN 57% 18–24 66% Rar ely Ne ver Of t e nt ime s S om e ti me s 45+ 51% WHAT’S WITH THE BIG MONITOR ON THE WALL? 41% 59% Yes No 45+ 42% 35–44 41% MEN 41% 18–24 36% 25–34 39% Do you believe your main TV is transforming into a monitor for the content you self-select to view from an online or web 50% device? enabled WOMEN 45% With the advent of on-demand programming and over-thetop (OTT) options like video-from-web ready TVs, web TV boxes, and game 35%consoles, the viewer is almost completely 33% in control. The only content holdout has been33% the major 31% 31% networks, and Aereo is currently challenging them. 32% Of all of our respondents, 59% believe their TV set is 21% for the content they choose becoming more like a monitor to watch, as opposed to linear TV. MEN 69% WOMEN 51% 18–24 63% fitn e ss out do ors Au tom oti Foo ve da nd win e Life Ne ws and style cur re eve nt nts 45+ 47% and and and b ea uty Men and young adults have a stronger belief in this transformation than do women or older adults. 69% of men view their TV as a monitor compared to 51% of women. 63% of those 18–24 believe the same. It is only in the 45+ age group that the minority holds this belief at 47%. rts Spo alth He Fas h ion Base: n=1,044 Sums may not equal 100 due to rounding 6% 46% 13% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute 35% adroitdigital.com ONLINE VIDEO 13 WHERE TO TUNE IN In what content categories are you most likely to respond to online 50% video 45% ads? Men 32% The odds appear to be in favor of advertisers taking advantage of video ad units. When asked in which content category our respondents were most likely to respond to an online video ad, there 30% Women 27% doesn’t appear to be a clear-cut content champion. The top categories, overall by a narrow margin, are health and16% fitness, 35%; tied for the second spot are sports and outdoors along with news and current events, 33%; and9% third, fashion and beauty, 32%. 63% No Yes MEN 67% WOMEN 57% 18–24 66% 45+ 51% Rar ely Ne ver s me eti s 37% Som 35% 33% 31% 31% 59% Yes No 45+ 42% 35–44 41% 18–24 36% WOMEN 45% 25–34 39% 50% MEN 41% 41% 33% 32% 21% MEN 69% WOMEN 51% 18–24 63% ss out do ors Au tom oti Foo ve da nd win e L Ne ifes ws and tyle cur re eve nt nts fitn e and rts Spo He ion alth and and b ea uty 45+ 47% Fas h Of t ent ime Tops across the sexes and ages are for men, sports and outdoors, 41%; women, fashion and beauty, 45%; 18–24, sports and outdoors, 36%; 25–34, health and fitness, 39%; and with those 35–44 and 45 and older, it is news and current events, at 41% and 42% respectively. Online video is increasing overall media consumption Base: n=2,000 adroitdigital.com ONLINE VIDEO 14 Lif Ne ws and c Au to Foo da n ou and and Sp o r ts alth and He Fas hio n b ea uty a n Sp o d fi t ne r ts ss and out do or s Au tom o ti Foo ve da nd win e Life Ne ws and style cur re eve nt nt s and alth He Fas hio n 18–24 63% 45+ 47% 6% 60 SECONDS IS A LONG TIME To be effective, what is the optimal length of a video ad? WOMEN 51% 46% 13% If advertisers want their video ads to leave viewers with a positive brand experience, less may be more. 6%is for a video When asked what the optimal length ad, 46% of respondents indicated 15 seconds or under is the answer. 35% indicated the optimal length to be 16 to13% 30 seconds. The minority, 19%, felt 31 seconds or over was the optimal length. 1 to 15 secon 16 to 30 sec 31 seconds t More than 1 46% 35% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute 35% 36% 64% 32% Video content Text content MEN 69% WOMEN 59% 18–24 68% 36% 64% 32% 45+ 58% 68% Video content Text content Short video Text conten MEN 69% WOMEN 59% 18–24 68% 50% 45+ 58% 28% 45+ 32% 36% 18–24 35% Video content marketing has become an increasingly high priority for businesses** 23% Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com 5% 50% 13% ONLINE VIDEO 15 31% 35% MEN 69% alth WOMEN 51% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 min More than 1 minute 18–24 63% He Fas hio n 21% 13% and 32% b ea uty and Sp o fitn r ts e ss and out do or s Au tom o ti Foo ve da nd win e Life Ne ws and style cur re eve nt nt s 31% 45+ 47% HOW DO YOU DO THAT? When you’re searching for “how-to” information, 35% are you more likely to search for video content or text content? 36% 64% b ea uty a n Sp o d fi tne r ts ss and out do or s Au tom o ti Foo ve da nd win e Life Ne ws and style cur re eve nt nts Video conten Text content 6% alth 64% 31 seconds to 1 minute More than 1 minute 18–24 35% 68% Short video Text content 13% M WO 45+ 51– 75% 76– 100 % 45+ 32% adroitdigital.com 23% 32% Short video Text content MEN 70% WOMEN 64% 18–24 72% 0– 25% 26– 50% 51– 75% 76– 100 % 18–24 68% 45+ 62% Base: n=1,000 Sums may not equal 100 due to rounding Base: n=2,000 Sums may not equal 100 due to rounding 28% 45+ 32% 28% MEN 69% 36% 45+ 58% 36% WOMEN 59% 45+ 58% 18–24 68% 50% 36% 69% When seeking new product information, the majority of our MEN WOMEN respondents, 68%, would be more influenced by a short video than59% 18–24 68% by something text-based. 28% 45+ 58% 23% 70% of men compared to 64% of women, and 72% of those 18–24 64% 32% compared to 62% of those 45 and over, would be more influenced by 68% Video a short video compared to a content static or text-based piece of content. 13% Text content 50% MEN 69% WOMEN 59% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute Video50% content When seeking out new product information, would you be more influenced by a short video Text content (15 seconds) or a text-based piece of content? 32% 1 to 15 secondsVideo content Text content 16 to 30 seconds 0% 64% 45+ 58% 18–24 35% 36% 18–24 35% 36% VIDEO IS THE WAY 45+ 32% 35% 46% Men seem to be35% more visual than women, with 69% compared to 59% being more likely to use a video source for how-to. Those 18–24 compared to those 45 and older are also more likely to choose a video at 68% compared to 58%. 18–24 26– 5 64% 6%of all respondents go to a video source to find how-to information as opposed to a text-based approach. WOMEN 0– 25% Traditionally, when searching for information on how to accomplish a task or find instructions, it has been a text-based search dating back to the library and, until recently, the text-based web. Online 36%video seems to have changed something very old into something new. 13% MEN He Fas hio n and When it comes to teaching an old dog new tricks, how-to information seems to be breaking the rules. The old how-to guide has been 46% replaced by the13% how-to video. 23% ONLINE VIDEO 16 ME WOM 18– 45+ 58 Of all your video consumption, what percentage is on-demand as opposed to live broadcast television? 28% 23% In looking across the results by sex and age groups, there seems to be little difference in the division of broadcast versus on-demand. One may expect to see a larger delta between those 18–24 and those 45 and over. 13% 26– 50% 0– 25% 35% of 18–24-year-olds compared to 32% of those 45 and over are consuming more than 50% of their video consumption from an on-demand source. 45+ 32% 36% of all respondents indicated that more than half of their video consumption is on-demand as opposed to live broadcast television. 13% of all respondents watch more than 75% of their video content on-demand. 36% 18–24 35% 50% 51– 75% 76– 100 % IS IT LIVE OR IS IT MEMOREX? Americans own more devices than ever before, and they are spending increasing amounts of time with them collectively.* Base: n=1,000 n=2,000 Sums Sumsmay maynot notequal equal100 100due dueto torounding rounding adroitdigital.com ONLINE VIDEO 17 Conclusion It’s clear the way viewers are consuming video content is shifting quickly. The phrase “video content” in and of itself is a strong indication the worlds of online, broadcast, and cable TV are on a collision course. What traditionally has been thought of as programming is now just another form of digital content. The big collision won’t be about the content. It will be about what supports the content— advertising. Currently, US advertisers are spending in excess of $65 billion annually on television advertising.^ For brands, television advertising is a tried and true formula for reaching consumers with a known and trusted measurement system established over decades. In the digital world, it has taken online advertisers slightly over a decade to effectively market, sell, and measure digital ads to secure digital dollars with a system that brands understand and accept. It’s inevitable there will be dollars traditionally spent on broadcast and cable that will transition to digital dollars for video content. This brings to the forefront another term—“digital dollars,” or advertising dollars. The shifting eyes and viewing preferences of consumers are going to force television advertisers to quickly define a unified digital strategy to keep up with viewers. To accommodate this transition, the division of church and state—traditional and digital advertising strategies—is going to have to change faster than advertisers will be comfortable doing. To be successful in this brave new world of digital video content, advertisers and publishers/ broadcasters will have to wade into a quagmire of technology solutions with which they are more than likely unfamiliar and unequipped to conquer on their own. Simply getting the inventory supply up and running to be sold efficiently and effectively at a price floor that will satisfy publishers/broadcasters will be a big feat. Establishing a trusted measurement system to satisfy advertisers who control the dollars is another looming challenge. With a world of uncertainty ahead and the rate of change affecting the world of video and video advertising, one thing is certain—there won’t be a dull moment. Agencies, brand advertisers, broadcasters/publishers, cable systems, and ad tech suppliers all need to fasten their seatbelts, hold on to one another, and be prepared for the ride of a lifetime. Let the ride begin. adroitdigital.com ONLINE VIDEO 18 About Adroit Digital At Adroit Digital, we believe people move technology, not the other way around. Our team of programmatic experts uses human insights, our exclusive data set, and unmatched media access to intelligently drive marketing performance. We work hard to delight our customers every day. We have offices in New York, Boston, Los Angeles, Chicago, and San Francisco. Contact Us For press inquiries, please contact Marci Stone, [email protected] Matter Communications For sales inquiries, please contact [email protected] (855) 6-ADROIT Sources: * eMarketer, US Time Spent with Media: The complete eMarketer forecast for 2014 http://www.emarketer.com/Article/Mobile-Continues-StealShare-of-US-Adults-Daily-Time-Spent-with-Media/1010782 ** Karcaewski, T., Content Standard, Online Media Drives Advertisers Toward Video Ads, May 2014 http://www.skyword.com/contentstandard/ news/online-media-consumption-drives-advertisers-toward-video-ads/ ^ Perlberg, Steven. Wall Street Journal, Digital Ad Revenue Skyrockets, But Still Lags TV. April 10, 2014. http://blogs.wsj.com/cmo/2014/04/10/ internet-ad-revenues-iab/ All registered trademarks and logos contained herein are the sole property of their respective owners. adroitdigital.com 19