Online video is rapidly becoming the preferred medium for all online connected screens in the US. A survey by comScore Video Metrix indicates that over 196 million Americans watch online video content, which is equivalent to 78% of US internet users today. Another report by New York Times says that 34% of millennials watch less or no TV compared to online videos. Funny videos top the list of the most popular online videos at 52%, while TV shows are less popular with 33% according to a 2013 study. Online videos movers and shakers continue to work with content providers like YouTube, Yahoo, AOL and Facebook and streaming sites including Amazon and Netflix.
The rise of smaller screens on mobile and tablets is seen as one reason why online video content is growing at this terrific rate. “The true catalyst for this growth is the ability to create customized, personalized brand connections through digital technologies” said Eyeview CEO Oren Harnevo. Online video ads have the ability to personalize narratives to better appeal to individual emotions; they have simply perfected the power of TV commercials.
Another reason for the success of online videos is the fast evolving technological innovation. “HTTP or chunked video is enabling playback on a huge spectrum of devices, something that wouldn’t have been possible a few years ago with Flash and other proprietary video streaming formats,” said Jason Thibeault, senior marketing strategy director, Limelight. It must be mentioned however that other factors have contributed to this growth, of note here is the input of companies like Verizon and Comcast, who are changing TV-online video relationship. Marketers seeing the huge opportunities available to reach audiences on the web are now shifting billions of dollars from TV to online videos ads.
In the past year, TV and video convergence figured large as advertisers, media companies and ad agencies recognized the need for aligning video strategy with consumers’ changing habits. “Television-centric brand advertisers now want to buy video across screens the way they have been buying TV for years-only better, with more automation, more data, and greater accountability” said Scott Ferber, CEO and chairman, Videology. 2015 promises even more for online videos as consumer’s appetite for video consumption increases and more business realize that video is here to stay.