A new report forecasts the future of online video advertising expenditure to grow by 31% over the next five years – in dollar terms, that’s an increase from $133 million in 2013 to $513 million in 2018.
The research report by Frost & Sullivan, Australian Online Video Market 2013, found that Australia’s online video market is being driven by the popularity of mobile and tablets.
What’s more, it’s firmly on the increase due to younger consumers’ preference for online video channels over traditional TV.
Key statistics include:
- In 2013, 87% of consumers watched TV shows and/or movies on a TV screen at least once month; a decline from 94% in 2012.
- The frequency of consumer viewing on tablets and smartphones increased from 20% in 2012 to 24% in 2013.
- 27% of smartphone users watch user generated content on sites such as YouTube on most days, while 60% do so at least once a month.
Phil Harpur from Frost & Sullivan said that the combination of larger and higher resolution smartphone screens and a rise in monthly data cap limits offered by mobile operators has improved the viewer experience significantly, leading to increased useage.
“Live and sporting events and news will be a key driver in taking the online video experience to a mainstream audience. For example, watching live news on devices while commuting on a train, is becoming more common and offers a real substitute to the TV lounge room viewing” Harpur said.
In turn, the shift in consumer behaviour represents significant opportunities for online video advertising, as well as content production aligned to advertiser driven demand.