Click here to close now.



Welcome!

News Feed Item

Frost & Sullivan: A record year for the online video advertising market; grows by 58%

The proliferation of mobile devices a key growth factor

SYDNEY, Nov. 4, 2012 /PRNewswire/ -- The rapid proliferation of mobile devices and insatiable demand by younger consumers has driven further demand for online video among Australians and led to a record year of growth in the online video advertising market, according to the latest Frost & Sullivan report into the market.

An overwhelming majority (94%) of 15 to 17 year olds now watch TV shows and/or movies at least once a month on a desktop / laptop.  Smartphones and tablets are playing a key role in the delivery of online video with two-thirds of smartphone users watching short video clips on average at least once a month.  The rise of mobile devices is also leading to much higher levels of multi-tasking across different devices and platforms with social media being a key facilitator of this experience.

These are among the findings in Frost & Sullivan's latest report of The Online Video Market in Australia, written in association with TVN.  The report draws from Frost & Sullivan's inaugural Australian Online Video Usage Trends Survey conducted in May 2012, examining the online video consumption behavior of 1,000 Australians between the ages of 15 and 65.

Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan, said, "The online video advertising market grew by 58% in the 12 months to June 2012 to reach $86 million, faster than any previous year. A growing number of 'light' TV watchers are now watching online video across a range of devices while 40% of tablet owners are accessing their tablet as they watch traditional TV, always or most of the time".

The rise of mobile devices presents challenges and opportunities

Pete Ostick, TVN Managing Director, said the rise of viewing video content on mobile devices presented both challenges and opportunities for advertisers.  "Brands need to find new ways to reach their audiences as more of us turn to our mobile devices during TV ad breaks or choose to watch more long form content online," he said.

Indeed, TV programs and full length movies have become mainstream activities with both now viewed by nearly half of all tablet users at least once a month.  Short video clips remain the most popular with 39% of tablet owners viewing these on most days.

"Tablets are significantly changing entrenched TV user behaviour patterns. Around half (51%) of tablet owners indicated that using a tablet has to some degree reduced the amount of time they spend watching TV shows or movies. As tablet penetration rises and behaviour patterns become more established, the impact that tablet usage is expected to have on general consumer behaviour is expected to increase.

"Developing engaging and targeted online video advertising campaigns is a key strategy for a growing number of brands as they seek to offset the fall in TV ad engagement and leverage the rise of online video," Ostick said.

Strong market growth forecast

Frost & Sullivan forecasts strong market growth will continue over the next five years with the market predicted to grow at a CAGR of 39% from 2012 to 2017, increasing from $86 million in 2012 to $442 million in 2017. It is expected to outperform all other major online general advertising segments such as banner ads, advertorials, sponsorships and e-newsletters.

Harpur said there were a number of factors that were securing the online video market's robust growth into the future. "Attracted by the greater targetability, engagement and interactivity that online ad serving platform solutions offer, agencies and large brands are increasingly seeing online video as an important and crucial part of the overall advertising mix while an acute shortage of inventory remains. In addition, the adoption of the Interactive Advertising Bureau (IAB)'s Digital Video Ad Serving Template (VAST) and Digital Video Player Ad Interface Definition (VPAID) standards have made it more efficient and effective for publishers to monetise their online assets."

As the online video market matures, three major players are dominating the local market being TVN, a media and technology company dedicated to internet TV; Smartclip, Adconion's video offering; and Tube Mogul.

Frost & Sullivan's report Australian Online Video Market 2012 forms a part of the Frost & Sullivan Australian Digital Media Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. For media queries and more information please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at [email protected].

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:  Start the discussion

Join Us:  Join our community

Subscribe:  Newsletter on "the next big thing"

Register:  Gain access to visionary innovation

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
M: +61 (0) 407 598 937
F: +61 (02) 9252 8066
E: [email protected]

http://www.frost.com

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...