Online Video Ad Market Taking Shape

As consumers watch more of their favorite shows online instead of on TV, marketers have been serving up video ads. Researchers are finding that consumers exhibit specific viewing patterns based on the devices they are using. And marketers can now predict peak video viewing based on time of day. This newly available information will help marketers determine when and where to place their ads.

The number of online videos viewed continues to grow with about 11.8 billion events occurring quarterly. At the same time, video ad views are growing and topped 7.2 billion in the most recent quarter. This trend is especially important for marketers who should know that 5.02 video ads take place during a typical long-​form video (longer than 20 minutes) that is viewed online. Researchers say much of this video content is brought over from TV and that the number of ads shown to consumers who watch online or via TV is now comparable.

Researchers at FreeWheel have discovered that long-​form video consumption shares the same peak period as prime-​time TV – between 8:00 p.m. and 11:00 p.m. However, short-​form content (under 5 minutes) is mostly viewed between 1:00 p.m. and 4:00 p.m.

Analysts also reported that video viewing platforms are changing. Earlier this year, mobile consumers largely used iPhones and iPods to view video. But during the course of this year, the iPad and devices based on the Android operating system have come to dominate the video viewing market. These devices are also linked to unique viewing behavior. For example, iPad users view videos between 8:00 and 9:00 a.m. and then, after falling off during the day, the traffic peaks at about 10:00 p.m. Wired video viewing, which may be occurring in the workplace, peaks at between noon and 2:00 p.m. Mobile phone users display a video watching pattern that begins to steadily rise at 6:00 a.m. and tops out at about 10:00 p.m.

As consumers continue to accept ads during their online video content consumption, marketers will be able to more easily target who is watching specific programs and reach their audiences more effectively.

[Source: Q3 2011 FreeWheel Video Monetization Report. Freewheel​.tv. November 2011. Web. 13 Dec. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.