Online Video Advertising Is Going To Reach $780 Million By 2019

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video-marketing

Recent study revealed that Australian online video advertising market is going to grow from $198 million in 2014, to $780 million in 2019.

The report also found the proportion of online video ads traded in Australia was also on the up. However, the majority of this trading is for non-premium usage. Increasingly, ad agencies and brands are placing their online video inventory directly through ad exchanges, while some of them are building their own trading desks.

Furthermore, the report stated that several factors are  continuously stimulating consumption of online video in Australia. There is a higher and growing proportion of longer form content of all online video content watched, and a growing proportion is premium content such as movies or TV shows. Viewing patterns are being aided by improving data allowances from internet service providers, and a greater range of content availability from subscription video-on-demand (SVOD) providers.

News feature is the most popular type of content viewed on mobile devices with 21% of consumers watching it on most days, and a further 24% watch it at least once a month on average. Live broadcast programs such as sports and news are also gaining popularity. The growth of online video advertising outperformed all other major online general advertising segments, including online display advertising. The uptake for local over-the-top (OTT) subscription video on demand (SVOD) services from providers such as Quickflix is modest, and global players such as Netflix have yet to formally enter the Australian market.

However, more local and international providers are expected to enter the SVOD market in 2015, and competition will increase. Foxtel recently launched its Foxtel Go and Foxtel Presto services, whilst Google recently launched its OTT Chromecast device in Australia. Nine and Fairfax will both invest $50 million each in the StreamCo joint venture and privately, executives have suggested the video streaming platform will commission its own programming, not just pouring Nine content. The SVOD service is expected to launch in the first half of 2015.

Online video content is one of the most important strategy of Internet marketing. Many online publishers strive on both content and advertising perspective. Local online news sites are incorporating more online video content and those produced by online publishers such as Fairfax Media and Yahoo7 continue to evolve.

However, there is still a lack of locally produced ad funded content. Australians favour the majority of popular video content like music, gaming, sports, and movies from overseas websites. Due to a scarcity of video ad spots, video ad pricing for premium inventory, especially long form content, has increased significantly. However, non-premium ad rates are declining due to growing over-supply of ad spots in the market.

Brands and ad agencies see video as an important part of the overall video and TV ad buying process as a way to extend the reach of FTA TV campaigns. The market is moving towards a complete solution for buying video across traditional TV broadcasting and online video channels.