Technology | Media | Telecommunications

Saturday, February 19, 2011

Video Advertising will Grow to $5.71 Billion in 2015


Viewing traditional television content is central to mainstream America's media day. But the internet is already having a profound effect on U.S. consumer viewing habits and the proliferation of devices is altering their video consumption behavior.

eMarketer estimates that in 2011, 68.2 percent of U.S. internet users, or 158.1 million people, will be watching video content online each month. By 2015, that figure will increase to 76 percent of internet users -- or 195.5 million people.

In the same period, online video advertising spending will surge from $1.97 billion to $5.71 billion.

"Consumers are not ready to go over the top (OTT), but they are edging closer," said Lisa E. Phillips, eMarketer senior analyst. "They care most about convenience, cost and choice, and are interested in viewing options to the extent that they fit in with those demands."

Broadcast live TV shows are still popular with mainstream U.S. viewers, but newer technologies make it easy to time-shift shows to suit people's schedules -- even while watching on a TV set. Gaming consoles, present in a majority of households, also facilitate OTT video streaming.

eMarketer expects that this year, 69.4 million adults will watch TV shows at least once a month through some type of internet connection, meaning the show could be watched on a TV set, computer screen or mobile device. By 2015, nearly 100 million adults, or 48 percent of all adult internet users, will do the same.

"There is no one-size-fits-all approach to advertising around video content, given the myriad devices and demographics that are intersecting," said Phillips.

Brand marketers need to know their target audiences expect to be entertained with strong creative -- and merely re-purposing legacy 30-second TV commercials for online video use has proven to be problematic.