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adroitdigital.com
ONLINEVIDEO
LOOKWHO’S
WATCHINGNOW
A SNAPSHOT OF HOW CONSUMERS
INTERACT WITH ONLINE VIDEO
CONTENT AND ADVERTISING
Contents
Introduction	 3
Objectives & Methodology	 4
Major Findings	 5
Demographics	 6
Survey	 7
Conclusion	 18
About Adroit Digital	 19
Contact Us	 19
ONLINE VIDEOadroitdigital.com
3ONLINE VIDEOadroitdigital.com 3
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.
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.
4ONLINE VIDEOadroitdigital.com
5ONLINE VIDEOadroitdigital.com
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 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.
•	 59%ofallrespondents believe theirTV setis 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.
•	 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%.
•	 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.
•	 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.
•	 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.
6ONLINE VIDEOadroitdigital.com
Gender
AGE
Demographics
Base: n=2,000 Sums may not equal 100 due to rounding
Male
Female
43% 57%
15%
34%
37%
14%
10%
30%
30%
30%
N 77%
35+ 5%
18–24 16%
MEN 25%
WOMEN 38%
35–44 35%
18–24
25–34
35–44
45+
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
70%
49%
68%
25%
22%
51%
Less t
1 to 10
10 to 3
More
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
Men43%
Women56%
DVR
30%
Men28%
Women32%
Male
Female
15%
34%
37%
14%
10%
30%
18–24
18–24
25–34
35–44
45+
Less than 1 minute
34%
37%
4%
10%
35+ 5%
18–24 16%
MEN 25%
18–24
25–34
35–44
45+
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
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)?
From which sources do you consume
video content?
Advertisers may be well-advised to spread their video
advertising dollars outside of live television broadcasts.
68% of all viewers surveyed are consuming video
content from YouTube; 51% are consuming video
content from live television broadcasts; and 49% are
consuming video content from Netflix.
Men and women select video content from different
sources. They both indicated approximately the same
level of consumption for live television.
However, 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
as a video content source, 32% to 28% respectively.
TO TV OR NOT TV, THAT IS THE
QUESTION
IS BROADCAST TV READY TO
SHARE THE SPOTLIGHT?
30%
30%
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
40%
0–5
5–15
15–30
30+
35%
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
Watch in
entirety
Skip through
ads
49% 51%
By m
With
or fam
30% 70%
Most of the time I skip it
Most of the time I don’t skip it
Depends on the ad
45+ 53%
18–24/45+ 24% 35–44 33%
37%
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
18–24 64%
35–44 50%
25–34 24%
56%
20%
24%
11%
17%
DVR
Women 35%
Men 38%
Male
Female
43% 57%
15%
34%
37%
14%
10%
30%
30%
30%
77%
35+ 5%
18–24 16%
MEN 25%
WOMEN 38%
35–44 35%
18–24
25–34
35–44
45+
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
70%
49%
68%
25%
22%
51%
Less tha
1 to 10 m
10 to 30
More th
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
Men43%
Women56%
DVR
30%
Men28%
Women32%
7ONLINE VIDEOadroitdigital.com
Base: n=2,000 Sums may not equal 100 due to rounding
28% of respondents indicated they consume
fifteen or more hours a week of streaming
video content through a game console or
web TV device.
Men are more likely than women to
consume between five and fifteen hours
weekly of streaming content, 38% to 35%
respectively.
When it comes to power-watchers (those
watching 15 hours or more of streaming
video) by age group, those ages  35–44 are
the largest weekly consumers of streamed
video at 33%. Boththeyoungest respondents,
ages 18–24, and the oldest respondents, age
45 and over, fell on the lower end of the
power-watcher scale at 24% each.
It appears all eyes are on streaming video.
The question is, are advertisers keeping
their eyes on the ball?
8ONLINE VIDEOadroitdigital.com
Base: n=2,000 Sums may not equal 100 due to rounding
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.
Our survey respondents indicated a fairly even spread across how
long varying lengths of video content hold their attention. The
majority of all respondents were split into thirds across categories
from 1 minute to more than 30 minutes. The minority, 10%, stop
viewing in less than one minute.
Women are more likely than men to consume one piece of video
content for more than 30 minutes with 38% compared to 25%.
18–24-year-olds indicated the greatest likelihood to tune out in
under sixty seconds at 16%. This number drops to 5% in those 35
years of age and older.
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.
How long do you spend watching any one piece
of video content on average?
37%
10%
30%
30%
30%
35+ 5%
18–24 16%
MEN 25%
WOMEN 38%
35–44 35%
18–24
25–34
35–44
45+
40%
0–5
5–15
15–30
30+
35%
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
70%
49%
68%
25%
22%
51%
Watch in
entirety
Skip through
ads
49% 51%
Most of the time I skip it
Most of the time I don’t skip it
45+ 53%
18–24/45+ 24% 35–44 33%
37%
Less than 1 mi
1 to 10 minute
10 to 30 minu
More than 30
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
56%24%
11%
17%
Men43%
Women56%
DVR
30%
Men28%
Women32%
Women 35%
Men 38%
IT’S ALL ABOUT TIMING
9ONLINE VIDEO
Base: n=2,000 Sums may not equal 100 due to rounding
adroitdigital.com 9ONLINE VIDEOadroitdigital.com
Are you more likely to watch a
30-minute recorded/on-demand show
in its entirety including ads, or are
you more likely to skip through ads
and watch the recording in segments?
For all the conjecture that no one watches
commercials anymore, our respondents seem
to indicate otherwise.
When asked if our respondents watch commercials or
skip them while viewing a recorded/on-demand show,
the majority, 51%, said they watch the show in its
entirety, including commercials.
The only group that indicated they skip ads the
majority of the time are those aged 45 and over, at
53%.  
If given the option to skip an Internet
video ad, how often do you skip it?
When it comes to online video ads, our respondents
appear to be more willing to bypass an ad than they
are with recorded/on-demand content.
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.
18–24-year-olds are most likely to skip online video
ads most of the time, 64%, and those age 35-44 are
least likely to skip online video ads most of the time
at 50%.
Adults 25–34 are the age group least likely to skip
online video ads most of the time at 24%.
THE AUDIENCE IS SPLIT
JUST SKIP IT
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
40%
0–5
5–15
15–30
30+
35%
Webenabl
(AppleTV,Ch
Roku,game
Otheronlines
Live
Watch in
entirety
Skip through
ads
49% 51%
By myself
With friends
or family
30% 70%
Most of the time I skip it
Most of the time I don’t skip it
Depends on the ad
45+ 53%
18–24/45+ 24% 35–44 33%
37%
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
18–24 64%
35–44 50%
25–34 24%
56%
20%
24%
11%
17%
Women 35%
Men 38%
30%
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
40%
0–5
5–15
15–30
30+
35%
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
49%
Most of the
Most of the
Depends o
18–24/45+ 24% 35–44 33%
37%
Less than 1 minute
1 to 10 minutes
35–44
25–34 24%
56%
20%
24%
11%
17%
DVRMen
Wom
Women 35%
Men 38%
10%
30%
30%
30%
35+ 5%
18–24 16%
MEN 25%
WOMEN 38%
35–44 35%
40%
0–5
5–15
15–30
30+
35%
NetflixWebenableddevice
(AppleTV,Chromecast,
Roku,gameconsole)
Otheronlinestreamingsource
YouTube
Livetelevision
70%
49%
68%
25%
22%
51%
Watch in
entirety
Skip through
ads
49% 51%
Most of the time I skip it
Most of the time I don’t skip it
Depends on the ad
45+ 53%
18–24/45+ 24% 35–44 33%
37%
Les
1 to
10 t
Mo
Less than 1 minute
1 to 10 minutes
10 to 30 minutes
More than 30 minutes
18–24 64%
35–44 50%
25–34 24%
56%
20%
24%
11%
17%
Men43%
Women56%
DVR
30%
Men28%
Women32%
Women 35%
Men 38%
Base: n=2,000 Sums may not equal 100 due to rounding
10ONLINE VIDEOadroitdigital.com
What time of day are you
most likely to consume video
content?
Whenaskedwhattime ofdayourrespondents
are most likely to consume video content,
overtwo-thirds,67%,saidtheyare mostlikely to
consume video content from 4pm to 12am.
Are you more likely to be
consuming video content by
yourself or with others such
as friends or family?
Viewing video content seems to be a
one-man or one-woman show.
70% of our respondents usually consume
video content by themselves. 30% like to
share their video moments with friends or
family.
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
By myself
With friends
or family
30% 70%
Most of the time I skip it
Most of the time I don’t skip it
Depends on the ad
18–24 64%
35–44 50%
25–34 24%
56%
20%
50%
45%
Rarely
Never
OftentimesSometimes
9%
16%
Men32%
Women27%
30%
No Yes
37% 63%
MEN 67%
WOMEN 57%
18–24 66%
45+ 51%
41% 59%
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
30
50%
32%
35%
33%
31% 31%
33%
35–44 50%
25–34 24%20%
50%
45%
Rarely
Never
OftentimesSometimes
9%
16%
Men32%
Women27%
30%
37%
MEN41%
WOMEN45%
18–2436%
35–4441%
45+42%
25–3439%
LET THE VIEWING BEGIN
ONE IS THE LONELIEST
NUMBER
11ONLINE VIDEOadroitdigital.com
HOME ALONE?
Are there other people in your home
accessing video content at the same
time you are from different devices?
When it comes to a multi-screen, multi-room viewing
household, are there several video screens running at
any given time?
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 sometimes or
oftentimes. 30% indicated there are often others
viewing at the same time.
It appears men are more likely to have viewing
companions in the house compared to women, 32%
and 27% respectively.
40%
8am–12pm
12pm–4pm
4pm–8pm
8pm–12am
13%
20%
37%
30%
50%
20%
50%
45%Rarely
Never
OftentimesSometimes
9%
16%
Men32%
Women27%
30%
MEN41%
N45%
2436%
35–4441%
25–3439%
Online media
consumption
is driving
advertisers
toward
video ads
Base: n=2,000 Sums may not equal 100 due to rounding
CABLE CAN GO
If you could have all your broadcast TV needs
satisfied with an online provider like Aereo/
SkitterTV/NimbleTV, would you cancel your
cable subscription?
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.
63% of our respondents said if their broadcast TV needs could be
satisfied by an online provider, they would cancel their cable
subscription.
Men appear to be more likely to cut the cord than women, 67%
compared to 57% respectively.
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%.
12ONLINE VIDEO
Base: n=2,000 Sums may not equal 100 due to rounding
adroitdigital.com
8pm–12am 37%
30%
MEN 69%
WOMEN 51%
18–24 63%
45+ 47%
By myself
With friends
or family
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
50%
32%
35%
33%
21%
31% 31%
33%
50%
45%
Rarely
Never
OftentimesSometimes
9%
16%
Men32%
Women27%
30%
No Yes
37% 63%
MEN 67%
WOMEN 57%
18–24 66%
45+ 51%
MEN41%
WOMEN45%
18–2436%
35–4441%
45+42%
25–3439%
Yes
No
41% 59%
13ONLINE VIDEOadroitdigital.com 13ONLINE VIDEOadroitdigital.com
Base: n=1,044 Sums may not equal 100 due to rounding
13
WHAT’S WITH THE BIG MONITOR ON
THE WALL?
Do you believeyourmainTVistransforming
into a monitor for the content you
self-select to view from an online or web
enabled device?
With the advent of on-demand programming and over-the-
top (OTT) options like video-from-web ready TVs, web TV
boxes, and game consoles, the viewer is almost completely
in control. The only content holdout has been the major
networks, and Aereo is currently challenging them.
Of all of our respondents, 59% believe their TV set is
becoming more like a monitor for the content they choose
to watch, as opposed to linear TV.
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%.
MEN 69%
WOMEN 51%
18–24 63%
45+ 47%
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
50%
32%
35%
33%
21%
31% 31%
33%
13%
46%
35%
6%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
Rarely
Never
OftentimesSometimes
9%
16%
Wo
MEN 67%
WOMEN 57%
18–24 66%
45+ 51%
MEN41%
WOMEN45%
18–2436%
35–4441%
45+42%
25–3439%
Yes
No
41% 59%
14ONLINE VIDEOadroitdigital.com
WHERE TO TUNE IN
In what content categories are you
most likely to respond to online
video ads?
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
doesn’t appear to be a clear-cut content champion.
The top categories, overall by a narrow margin, are
health and fitness, 35%; tied for the second spot are
sports and outdoors along with news and current
events, 33%; and third, fashion and beauty, 32%.
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.
14ONLINE VIDEOadroitdigital.com
Base: n=2,000
MEN 69%
WOMEN 51%
18–24 63%
45+ 47%
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
50%
32%
35%
33%
21%
31% 31%
33%
50%
45%
Rarely
Never
OftentimesSometimes
9%
16%
Men32%
Women27%
30%
No Yes
37% 63%
MEN 67%
WOMEN 57%
18–24 66%
45+ 51%
MEN41%
WOMEN45%
18–2436%
35–4441%
45+42%
25–3439%
Yes
No
41% 59%
Online video
is increasing
overall
media
consumption
15ONLINE VIDEOadroitdigital.com
60 SECONDS IS A LONG TIME
To be effective, what is the optimal
length of a video ad?
If advertisers want their video ads to leave viewers
with a positive brand experience, less may be more.
When asked what the optimal length is for a video
ad, 46% of respondents indicated 15 seconds or
under is the answer. 35% indicated the optimal
length to be 16 to 30 seconds. The minority, 19%,
felt 31 seconds or over was the optimal length.
15ONLINE VIDEOadroitdigital.com
Fashionand
Healthand
Auto
Foodan
Sportsandou
LifNewsandc
13%
46%
35%
6%
1 to 15 secon
16 to 30 sec
31 seconds t
More than 1
36% 64%
Video content
Text content
MEN 69%
WOMEN 59%
18–24 68%
45+ 58%
32%
50%
36%
13%
23%
18–2435%
28%
45+32%
WOMEN 51%
18–24 63%
45+ 47%
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
13%
46%
35%
6%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
36% 64%
Video content
Text content
MEN 69%
WOMEN 59%
18–24 68%
45+ 58%
32% 68%
Short video
Text conten
50%
5%
Base: n=2,000 Sums may not equal 100 due to rounding
Video content marketing
has become an increasingly
high priority for businesses**
16ONLINE VIDEOadroitdigital.com
HOW DO YOU DO THAT?
VIDEO IS THE WAY
When you’researchingfor“how-to” information,
are you more likely to search for video content
or text content?
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
replaced by the how-to video.
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 video seems
to have changed something very old into something new.
64% of all respondents go to a video source to find how-to information
as opposed to a text-based approach.
Men seem to be 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%.
When seeking out new product information,
would you be more influenced by a short video
(15 seconds) or a text-based piece of content?
When seeking new product information, the majority of our
respondents, 68%, would be more influenced by a short video than
by something text-based.
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.
16ONLINE VIDEOadroitdigital.com
35%
36% 64%
Video conten
Text content
MEN
WOMEN
18–24
45+ 58%
50%
36%
51–75%
76–100%
0–25%
26–50%
13%
23%
18–2435%
28%
45+32%
13%
35%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 min
More than 1 minute
36% 64%
Video content
Text content
MEN 69%
WOMEN 59%
18–24 68%
45+ 58%
32%
50%
36%
51–75%
76–100%
0–25%
26–50%
13%
23%
18–2435%
28%
45+32%
MEN 69%
WOMEN 51%
18–24 63%
45+ 47%
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
32%
21%
31% 31%
13%
46%
35%
6%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
36% 64%
Video content
Text content
MEN 69%
WOMEN 59%
18–24 68%
45+ 58%
32% 68%
Short video
Text content
MEN 70%
WOMEN 64%
18–24 72%
45+ 62%
Fashionandbeauty
Healthandfitness
AutomotiveFoodandwine
Sportsandoutdoors
Lifestyle
Newsandcurrentevents
13%
46%
35%
6%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
36% 64%
Video content
Text content
MEN 69%
WOMEN 59%
18–24 68%
45+ 58%
32% 68%
Short video
Text content
M
WO
45+
50%
36%
23%
18–2435%
28%
45+32%
Base: n=1,000 Sums may not equal 100 due to roundingBase: n=2,000 Sums may not equal 100 due to rounding
17ONLINE VIDEOadroitdigital.com
IS IT LIVE OR IS IT MEMOREX?
Of all your video consumption, what
percentage is on-demand as opposed to
live broadcast television?
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.
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.
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.
17ONLINE VIDEOadroitdigital.com
ME
WOM
18–
45+ 58
50%
36%
51–75%
76–100%
0–25%
26–50%
13%
23%
18–2435%
28%
45+32%
Base: n=1,000 Sums may not equal 100 due to rounding
Americans own more
devices than ever
before, and they are
spending increasing
amounts of time with
them collectively.*
Base: n=2,000 Sums may not equal 100 due to rounding
18ONLINE VIDEOadroitdigital.com
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
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, marci@matternow.com
Matter Communications
For sales inquiries, please contact
hello@adroitdigital.com
(855) 6-ADROIT
Sources:
* eMarketer, US Time Spent with Media: The complete eMarketer forecast
for 2014 http://www.emarketer.com/Article/Mobile-Continues-Steal-
Share-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.
19

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Online Video Advertising Trends

  • 1. adroitdigital.com ONLINEVIDEO LOOKWHO’S WATCHINGNOW A SNAPSHOT OF HOW CONSUMERS INTERACT WITH ONLINE VIDEO CONTENT AND ADVERTISING
  • 2. Contents Introduction 3 Objectives & Methodology 4 Major Findings 5 Demographics 6 Survey 7 Conclusion 18 About Adroit Digital 19 Contact Us 19 ONLINE VIDEOadroitdigital.com
  • 3. 3ONLINE VIDEOadroitdigital.com 3 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.
  • 4. 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. 4ONLINE VIDEOadroitdigital.com
  • 5. 5ONLINE VIDEOadroitdigital.com 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 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. • 59%ofallrespondents believe theirTV setis 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. • 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%. • 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. • 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. • 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.
  • 6. 6ONLINE VIDEOadroitdigital.com Gender AGE Demographics Base: n=2,000 Sums may not equal 100 due to rounding Male Female 43% 57% 15% 34% 37% 14% 10% 30% 30% 30% N 77% 35+ 5% 18–24 16% MEN 25% WOMEN 38% 35–44 35% 18–24 25–34 35–44 45+ NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Less t 1 to 10 10 to 3 More Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes Men43% Women56% DVR 30% Men28% Women32% Male Female 15% 34% 37% 14% 10% 30% 18–24 18–24 25–34 35–44 45+ Less than 1 minute 34% 37% 4% 10% 35+ 5% 18–24 16% MEN 25% 18–24 25–34 35–44 45+ Less than 1 minute 1 to 10 minutes 10 to 30 minutes
  • 7. 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)? From which sources do you consume video content? Advertisers may be well-advised to spread their video advertising dollars outside of live television broadcasts. 68% of all viewers surveyed are consuming video content from YouTube; 51% are consuming video content from live television broadcasts; and 49% are consuming video content from Netflix. Men and women select video content from different sources. They both indicated approximately the same level of consumption for live television. However, 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 as a video content source, 32% to 28% respectively. TO TV OR NOT TV, THAT IS THE QUESTION IS BROADCAST TV READY TO SHARE THE SPOTLIGHT? 30% 30% 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% 40% 0–5 5–15 15–30 30+ 35% NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision Watch in entirety Skip through ads 49% 51% By m With or fam 30% 70% Most of the time I skip it Most of the time I don’t skip it Depends on the ad 45+ 53% 18–24/45+ 24% 35–44 33% 37% Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes 18–24 64% 35–44 50% 25–34 24% 56% 20% 24% 11% 17% DVR Women 35% Men 38% Male Female 43% 57% 15% 34% 37% 14% 10% 30% 30% 30% 77% 35+ 5% 18–24 16% MEN 25% WOMEN 38% 35–44 35% 18–24 25–34 35–44 45+ NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Less tha 1 to 10 m 10 to 30 More th Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes Men43% Women56% DVR 30% Men28% Women32% 7ONLINE VIDEOadroitdigital.com Base: n=2,000 Sums may not equal 100 due to rounding 28% of respondents indicated they consume fifteen or more hours a week of streaming video content through a game console or web TV device. Men are more likely than women to consume between five and fifteen hours weekly of streaming content, 38% to 35% respectively. When it comes to power-watchers (those watching 15 hours or more of streaming video) by age group, those ages 35–44 are the largest weekly consumers of streamed video at 33%. Boththeyoungest respondents, ages 18–24, and the oldest respondents, age 45 and over, fell on the lower end of the power-watcher scale at 24% each. It appears all eyes are on streaming video. The question is, are advertisers keeping their eyes on the ball?
  • 8. 8ONLINE VIDEOadroitdigital.com Base: n=2,000 Sums may not equal 100 due to rounding 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. Our survey respondents indicated a fairly even spread across how long varying lengths of video content hold their attention. The majority of all respondents were split into thirds across categories from 1 minute to more than 30 minutes. The minority, 10%, stop viewing in less than one minute. Women are more likely than men to consume one piece of video content for more than 30 minutes with 38% compared to 25%. 18–24-year-olds indicated the greatest likelihood to tune out in under sixty seconds at 16%. This number drops to 5% in those 35 years of age and older. 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. How long do you spend watching any one piece of video content on average? 37% 10% 30% 30% 30% 35+ 5% 18–24 16% MEN 25% WOMEN 38% 35–44 35% 18–24 25–34 35–44 45+ 40% 0–5 5–15 15–30 30+ 35% NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Watch in entirety Skip through ads 49% 51% Most of the time I skip it Most of the time I don’t skip it 45+ 53% 18–24/45+ 24% 35–44 33% 37% Less than 1 mi 1 to 10 minute 10 to 30 minu More than 30 Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes 56%24% 11% 17% Men43% Women56% DVR 30% Men28% Women32% Women 35% Men 38% IT’S ALL ABOUT TIMING
  • 9. 9ONLINE VIDEO Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com 9ONLINE VIDEOadroitdigital.com Are you more likely to watch a 30-minute recorded/on-demand show in its entirety including ads, or are you more likely to skip through ads and watch the recording in segments? For all the conjecture that no one watches commercials anymore, our respondents seem to indicate otherwise. When asked if our respondents watch commercials or skip them while viewing a recorded/on-demand show, the majority, 51%, said they watch the show in its entirety, including commercials. The only group that indicated they skip ads the majority of the time are those aged 45 and over, at 53%. If given the option to skip an Internet video ad, how often do you skip it? When it comes to online video ads, our respondents appear to be more willing to bypass an ad than they are with recorded/on-demand content. 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. 18–24-year-olds are most likely to skip online video ads most of the time, 64%, and those age 35-44 are least likely to skip online video ads most of the time at 50%. Adults 25–34 are the age group least likely to skip online video ads most of the time at 24%. THE AUDIENCE IS SPLIT JUST SKIP IT 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% 40% 0–5 5–15 15–30 30+ 35% Webenabl (AppleTV,Ch Roku,game Otheronlines Live Watch in entirety Skip through ads 49% 51% By myself With friends or family 30% 70% Most of the time I skip it Most of the time I don’t skip it Depends on the ad 45+ 53% 18–24/45+ 24% 35–44 33% 37% Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes 18–24 64% 35–44 50% 25–34 24% 56% 20% 24% 11% 17% Women 35% Men 38% 30% 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% 40% 0–5 5–15 15–30 30+ 35% NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 49% Most of the Most of the Depends o 18–24/45+ 24% 35–44 33% 37% Less than 1 minute 1 to 10 minutes 35–44 25–34 24% 56% 20% 24% 11% 17% DVRMen Wom Women 35% Men 38% 10% 30% 30% 30% 35+ 5% 18–24 16% MEN 25% WOMEN 38% 35–44 35% 40% 0–5 5–15 15–30 30+ 35% NetflixWebenableddevice (AppleTV,Chromecast, Roku,gameconsole) Otheronlinestreamingsource YouTube Livetelevision 70% 49% 68% 25% 22% 51% Watch in entirety Skip through ads 49% 51% Most of the time I skip it Most of the time I don’t skip it Depends on the ad 45+ 53% 18–24/45+ 24% 35–44 33% 37% Les 1 to 10 t Mo Less than 1 minute 1 to 10 minutes 10 to 30 minutes More than 30 minutes 18–24 64% 35–44 50% 25–34 24% 56% 20% 24% 11% 17% Men43% Women56% DVR 30% Men28% Women32% Women 35% Men 38%
  • 10. Base: n=2,000 Sums may not equal 100 due to rounding 10ONLINE VIDEOadroitdigital.com What time of day are you most likely to consume video content? Whenaskedwhattime ofdayourrespondents are most likely to consume video content, overtwo-thirds,67%,saidtheyare mostlikely to consume video content from 4pm to 12am. Are you more likely to be consuming video content by yourself or with others such as friends or family? Viewing video content seems to be a one-man or one-woman show. 70% of our respondents usually consume video content by themselves. 30% like to share their video moments with friends or family. 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% By myself With friends or family 30% 70% Most of the time I skip it Most of the time I don’t skip it Depends on the ad 18–24 64% 35–44 50% 25–34 24% 56% 20% 50% 45% Rarely Never OftentimesSometimes 9% 16% Men32% Women27% 30% No Yes 37% 63% MEN 67% WOMEN 57% 18–24 66% 45+ 51% 41% 59% 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% 30 50% 32% 35% 33% 31% 31% 33% 35–44 50% 25–34 24%20% 50% 45% Rarely Never OftentimesSometimes 9% 16% Men32% Women27% 30% 37% MEN41% WOMEN45% 18–2436% 35–4441% 45+42% 25–3439% LET THE VIEWING BEGIN ONE IS THE LONELIEST NUMBER
  • 11. 11ONLINE VIDEOadroitdigital.com HOME ALONE? Are there other people in your home accessing video content at the same time you are from different devices? When it comes to a multi-screen, multi-room viewing household, are there several video screens running at any given time? 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 sometimes or oftentimes. 30% indicated there are often others viewing at the same time. It appears men are more likely to have viewing companions in the house compared to women, 32% and 27% respectively. 40% 8am–12pm 12pm–4pm 4pm–8pm 8pm–12am 13% 20% 37% 30% 50% 20% 50% 45%Rarely Never OftentimesSometimes 9% 16% Men32% Women27% 30% MEN41% N45% 2436% 35–4441% 25–3439% Online media consumption is driving advertisers toward video ads Base: n=2,000 Sums may not equal 100 due to rounding
  • 12. CABLE CAN GO If you could have all your broadcast TV needs satisfied with an online provider like Aereo/ SkitterTV/NimbleTV, would you cancel your cable subscription? 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. 63% of our respondents said if their broadcast TV needs could be satisfied by an online provider, they would cancel their cable subscription. Men appear to be more likely to cut the cord than women, 67% compared to 57% respectively. 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%. 12ONLINE VIDEO Base: n=2,000 Sums may not equal 100 due to rounding adroitdigital.com 8pm–12am 37% 30% MEN 69% WOMEN 51% 18–24 63% 45+ 47% By myself With friends or family Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 50% 32% 35% 33% 21% 31% 31% 33% 50% 45% Rarely Never OftentimesSometimes 9% 16% Men32% Women27% 30% No Yes 37% 63% MEN 67% WOMEN 57% 18–24 66% 45+ 51% MEN41% WOMEN45% 18–2436% 35–4441% 45+42% 25–3439% Yes No 41% 59%
  • 13. 13ONLINE VIDEOadroitdigital.com 13ONLINE VIDEOadroitdigital.com Base: n=1,044 Sums may not equal 100 due to rounding 13 WHAT’S WITH THE BIG MONITOR ON THE WALL? Do you believeyourmainTVistransforming into a monitor for the content you self-select to view from an online or web enabled device? With the advent of on-demand programming and over-the- top (OTT) options like video-from-web ready TVs, web TV boxes, and game consoles, the viewer is almost completely in control. The only content holdout has been the major networks, and Aereo is currently challenging them. Of all of our respondents, 59% believe their TV set is becoming more like a monitor for the content they choose to watch, as opposed to linear TV. 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%. MEN 69% WOMEN 51% 18–24 63% 45+ 47% Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 50% 32% 35% 33% 21% 31% 31% 33% 13% 46% 35% 6% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute Rarely Never OftentimesSometimes 9% 16% Wo MEN 67% WOMEN 57% 18–24 66% 45+ 51% MEN41% WOMEN45% 18–2436% 35–4441% 45+42% 25–3439% Yes No 41% 59%
  • 14. 14ONLINE VIDEOadroitdigital.com WHERE TO TUNE IN In what content categories are you most likely to respond to online video ads? 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 doesn’t appear to be a clear-cut content champion. The top categories, overall by a narrow margin, are health and fitness, 35%; tied for the second spot are sports and outdoors along with news and current events, 33%; and third, fashion and beauty, 32%. 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. 14ONLINE VIDEOadroitdigital.com Base: n=2,000 MEN 69% WOMEN 51% 18–24 63% 45+ 47% Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 50% 32% 35% 33% 21% 31% 31% 33% 50% 45% Rarely Never OftentimesSometimes 9% 16% Men32% Women27% 30% No Yes 37% 63% MEN 67% WOMEN 57% 18–24 66% 45+ 51% MEN41% WOMEN45% 18–2436% 35–4441% 45+42% 25–3439% Yes No 41% 59% Online video is increasing overall media consumption
  • 15. 15ONLINE VIDEOadroitdigital.com 60 SECONDS IS A LONG TIME To be effective, what is the optimal length of a video ad? If advertisers want their video ads to leave viewers with a positive brand experience, less may be more. When asked what the optimal length is for a video ad, 46% of respondents indicated 15 seconds or under is the answer. 35% indicated the optimal length to be 16 to 30 seconds. The minority, 19%, felt 31 seconds or over was the optimal length. 15ONLINE VIDEOadroitdigital.com Fashionand Healthand Auto Foodan Sportsandou LifNewsandc 13% 46% 35% 6% 1 to 15 secon 16 to 30 sec 31 seconds t More than 1 36% 64% Video content Text content MEN 69% WOMEN 59% 18–24 68% 45+ 58% 32% 50% 36% 13% 23% 18–2435% 28% 45+32% WOMEN 51% 18–24 63% 45+ 47% Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 13% 46% 35% 6% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute 36% 64% Video content Text content MEN 69% WOMEN 59% 18–24 68% 45+ 58% 32% 68% Short video Text conten 50% 5% Base: n=2,000 Sums may not equal 100 due to rounding Video content marketing has become an increasingly high priority for businesses**
  • 16. 16ONLINE VIDEOadroitdigital.com HOW DO YOU DO THAT? VIDEO IS THE WAY When you’researchingfor“how-to” information, are you more likely to search for video content or text content? 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 replaced by the how-to video. 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 video seems to have changed something very old into something new. 64% of all respondents go to a video source to find how-to information as opposed to a text-based approach. Men seem to be 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%. When seeking out new product information, would you be more influenced by a short video (15 seconds) or a text-based piece of content? When seeking new product information, the majority of our respondents, 68%, would be more influenced by a short video than by something text-based. 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. 16ONLINE VIDEOadroitdigital.com 35% 36% 64% Video conten Text content MEN WOMEN 18–24 45+ 58% 50% 36% 51–75% 76–100% 0–25% 26–50% 13% 23% 18–2435% 28% 45+32% 13% 35% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 min More than 1 minute 36% 64% Video content Text content MEN 69% WOMEN 59% 18–24 68% 45+ 58% 32% 50% 36% 51–75% 76–100% 0–25% 26–50% 13% 23% 18–2435% 28% 45+32% MEN 69% WOMEN 51% 18–24 63% 45+ 47% Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 32% 21% 31% 31% 13% 46% 35% 6% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute 36% 64% Video content Text content MEN 69% WOMEN 59% 18–24 68% 45+ 58% 32% 68% Short video Text content MEN 70% WOMEN 64% 18–24 72% 45+ 62% Fashionandbeauty Healthandfitness AutomotiveFoodandwine Sportsandoutdoors Lifestyle Newsandcurrentevents 13% 46% 35% 6% 1 to 15 seconds 16 to 30 seconds 31 seconds to 1 minute More than 1 minute 36% 64% Video content Text content MEN 69% WOMEN 59% 18–24 68% 45+ 58% 32% 68% Short video Text content M WO 45+ 50% 36% 23% 18–2435% 28% 45+32% Base: n=1,000 Sums may not equal 100 due to roundingBase: n=2,000 Sums may not equal 100 due to rounding
  • 17. 17ONLINE VIDEOadroitdigital.com IS IT LIVE OR IS IT MEMOREX? Of all your video consumption, what percentage is on-demand as opposed to live broadcast television? 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. 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. 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. 17ONLINE VIDEOadroitdigital.com ME WOM 18– 45+ 58 50% 36% 51–75% 76–100% 0–25% 26–50% 13% 23% 18–2435% 28% 45+32% Base: n=1,000 Sums may not equal 100 due to rounding Americans own more devices than ever before, and they are spending increasing amounts of time with them collectively.* Base: n=2,000 Sums may not equal 100 due to rounding
  • 18. 18ONLINE VIDEOadroitdigital.com 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.
  • 19. adroitdigital.com 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, marci@matternow.com Matter Communications For sales inquiries, please contact hello@adroitdigital.com (855) 6-ADROIT Sources: * eMarketer, US Time Spent with Media: The complete eMarketer forecast for 2014 http://www.emarketer.com/Article/Mobile-Continues-Steal- Share-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. 19