U.S. consumers are turning to a range of devices to satisfy their desire to view video content. TV anywhere, anytime, means consumers are watching their favorite programming on smartphones, tablets, PCs and OTT-enabled television sets. As a result, marketers are buying more ads on video content but FreeWheel analysts say that monetization for mobile and OTT does not yet match the amount of time consumers are spending on these formats.
In the Q2 2013 FreeWheel Video Monetization Report, analysts do a great job of summarizing consumer viewing and marketer advertising activity with respect to video content. Consumers are spending 41% more time watching digital pure-play videos this year and 32% more time watching linear and digital combined. In general, consumers see just under 1 ad during short content (under 5 minutes) in either format. The linear-digital content providers, think traditional TV online, serve up 4.3 ads during mid-length content (under 20 minutes) and 11.9 ads during longer content. Digital pure-play publishers average just under 1 ad in each longer video. In general, digital pure-plays are expected to increase their ad load as they release more original content. For now, about 50% of the ads served on linear video content are 30 seconds long.
Smartphones account for 13% of digital video viewing and this percentage is growing, along with OTT and tablet viewing. However, content providers report that only 5.6% of ad viewing is done on mobile phones, a number which suggests that advertising does not match the amount of time consumers are spending on this activity. For now, consumers prefer to view long-form content on a device other than the mobile phone. Marketers may well shy away from increasing their ad spend on long-form video content for smartphones because of the small screen size. It will be interesting to see if this situation changes.
To learn more about Online Video Watchers, check out the AudienceSCAN report available on the Research Store at ad-ology.com.