October 21st, 2011

The untapped potential of online video

Recently I had the privilege of jumping across the pond to attend the online media, marketing and advertising expo, OMMA. Not only was it two inspiring days of serious talks and discussions with all the most up-to-date news, information and ideas in the world of online marketing but plenty speculation on the future of digital.

My focus for the two days was to understand more about online video. The statistics, courtesy of comScore tell an interesting story:

In the US alone there are 108 million people watching online video with 1.3 billion videos been watched daily. Video has seen a 1,290% growth since January 2006. An amazing stat, and yet this fast growing internet segment is increasingly under-monetized. In 2010 the US spent $1,440 million on advertising and had 441 billion videos viewed as opposed to a $324 million ad spend and 63 billion videos viewed in 2006. So a 334% increase in spend but an astonishing 600% increase in videos watched. In August 2011 there were 185 million online videos viewed, 162 million of those were on YouTube alone. That is an average of 228 videos per person per month. For the average person that is, 17 hours a month.

When looking for examples of countries getting video right one needs to look at Canada, the US and China. China and the US both manage to get over 150 million unique views per month. Canada and the US both have over 180 videos viewed a month per viewer with the majority of the videos viewed are homemade and funny. However we can learn something from that. People like to be entertained and want funny content.

The heaviest consumers of online video are 18-34 year olds, with 49.7% being female users and 50.3% male. Men watch 1.7 times as many videos online as women, a ratio that has remained constant for the past two years.

Between 2009 – 2010, the growth among long-term TV programming sites of videos viewed increased 104%. So why then are advertisers not jumping in and making the most out of online video? Is it because we are still wary of the unfamiliar content, unsure of the true effectiveness, trying to put video into the TV model of storytelling?

I’m particularly excited to see the next stages of online video and how brands rise to the challenge to harness its potential. It’s already a big opportunity and growing by the day.

Blog post by Anthony Dobson, Business Development Executive at Reform