The 3 L’s of online video: longer, live and logged in
FreeWheel’s newly released Video Monetization Report for Q2 2014 shows growth in just about every area including (and most importantly) ad views.
Ad views grew 17% year-over-year on short and mid-form videos. But look at the growth on long form – 35%! So much for short attention span theater.
That’s nothing compared to the growth in live ad views – 201% year-over-year. 81% of the views came from live sports broadcasts such as the NBA Playoffs, NHL Playoffs, and the World Cup. 9% was news and FreeWheel expects that percentage to rise with the coming election season.
They also noted a rise in live entertainment such as music festival simulcasts.
Another growing trend is logged-in or authenticated video views. These are all of the systems that require you either to pay in somewhat to gain access. For example, you pay for HBO through your cable provider then you use your cable credentials to gain access to the HBO app on your iPad.
Authenticated ad views are up 619% year-over-year.
Potential viewers now expect to be able to watch events anywhere on any screen and are happy to enter their MVPD credentials in order to do so.
Which brings us to the device spread. Mobile viewing is up 93% year-over-year but over-the-top devices (OTT) really took off with growth of 236%. OTT includes the Roku, Apple TV, Google Chromecast and game consoles. These devices were slow to take off but they’re becoming much more common now that they’re so reasonably priced.
70% of ad views on over-the-top devices comes from long-form video so it’s sort of like watching regular TV. You’d think this was due to the screen size but more people watch long-form video on tablets (63%) and smartphones (35%) than watch on their desktops (31%). So, it’s not about size. What it’s about is comfort. You can sit on the couch and watch with a tablet on your lap. You can watch in bed. That’s not so easy with a computer, even if you own a heavy, hot, laptop.
Here’s more good news. People are okay with pre-roll advertising. I didn’t say they like it but it’s not keeping them from tuning in. Over the past year, pre-roll advertising has increased on all devices. Those little, intro ads now show up on more than 40% of all mobile videos and people are still watching.
Is video advertising working for you? We’d like to hear about your experience.