We recently discussed the state of video advertising with industry experts to uncover the key trends to help you thrive in 2016 and beyond. In an exclusive four-part video series, you’ll hear how these leaders use consumer habits to drive their video, mobile and branded content strategies.
Consumers are deciding when, where and how they want to be engaged, and marketers need to listen. No longer can a single 30-second TV spot be expected to drive results across an array of audiences and devices. Consumers are in control, disrupting how brands, agencies and publishers deliver personalized messaging and experiences that resonate from screen to screen.
Here are three trends marketers and publishers need to know to succeed in today’s media landscape:
Let's face it, television viewership is becoming more fragmented, making it harder to reach audiences.
While television remains a fundamental pillar of brand marketing and an effective tool to deliver emotional connections, the decline in overall viewership has reduced the channel’s impact. Notably, the 18-49 demographic, a TV buyers’ sweet spot, has dropped at a rate of 3.1% YoY from 2012-20151. These numbers don’t tell the full story, however. Consumers aren’t watching less video, they’re just seeking it on other screens.
Digital video consumption is exploding--and the industry better catch up.
It’s not much of a surprise that as consumers increase time spent with digital media, attention has become divided among a growing number of devices. U.S. adults are spending an average of 76 minutes per day consuming digital video, an increase of nearly an hour from just four years ago. While time spent watching television programming has declined year-over-year2, the overall time spent consuming video has actually increased. This shift shows audiences are seeking the content outside of the main screen. The increasing demand audiences have for sight, sound and motion across devices shows no signs of stopping. The advent of streaming services, which offer consumers content they want, where they want, when they want it, is causing fragmentation across services and devices, and making it harder for advertisers to reach their audience.
Marketers are noticing. According to AOL’s sixth-annual U.S. State of the Video Industry report, nine in 10 buyers are reprioritizing traditional advertising budgets to reflect consumers’ move to digital. This represents a massive shift from the marketing channels that have been traditionally thought of as most effective. Fifty-five percent of marketers shifting TV dollars towards digital have claimed the reallocation is directed to mobile video, and publishers are reporting that mobile video will make up 29% of their overall digital revenue in 2016.
For advertising to truly reach consumers, it now must be presented to them on their preferred screen and format, or it completely misses the mark.
Convenience is key when it comes to content consumption.
In 2015 alone, over 191 million people in the U.S. watched more than 50 billion online videos via mobile3. More than ever, the key to driving media consumption is consumer convenience. According to recent research by AOL, video viewers are 4x as likely to choose which device to watch content on based on what is the most convenient and easily accessible, not necessarily which device has the best viewing experience4. Consumers are looking for content on the device that’s never far from reach. Although marketers still cite measurement and attribution as a challenge to mobile video, their optimism towards the medium is strong. Half of buyers plan to increase spend in mobile video at an average of 8% over the past year. As the shift toward convenience-based consumption continues, marketers must start considering mobile as the “first screen”.
Stay tuned for additional installments of the Expert Voices series, where we share key insights and industry leaders from A+E Networks, GroupM, Horizon and more dive into trends disrupting the media landscape. To learn more about how consumer demand is driving mobile, programmatic and branded video growth in the U.S. and abroad, visit soi.aolplatforms.com.