Hey all you Bruces and Shielas, listen up, things are changing down in Australia and the masses are starting to consume far more online video than ever before. How much more? How about year-to-year growth of 58% for the online video advertising market - quicker than any other year!
New research from Frost and Sullivan's, "Australian Online Video Market 2012," report shows that video viewing is on the up and up fueled by more mobile devices and young consumers. Additionally, they predict that the video advertising market will grow more than 500% by 2017 – from $86M in 2012 to $442M in just 5 years.
The Australian Online Video Market 2012
Frost & Sullivan, in association with TVN, put out The Online Video Market in Australia which tracked online video consumption of 1000 Australians, aged 15-to-65. With an estimated population of 22.8 million that leaves a margin of error of around 3.1%.
A whopping 94% of teenagers are consuming at least one TV show or film each month thanks to the widespread use of smartphones and tablets. In fact, 66% of those who own a smartphone are watching short-form video at least once a month. Tablet users are split almost down the middle in regards to cutting back on TV viewing because of the tablets. Presumably that's because of the video they are watching on the tablets themselves.
In talking about the results, Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan said,
"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".
With the recent 58% growth the video advertising industry in Australia, the market is estimated to be worth $86 million (AUS) in 2012.
The Future for Online Video in Australia = Opportunity
Frost & Sullivan believe that the growth of the market will be strong through 2017 and could increase to $442 million by then. They also expect it to outperform all other online advertising like banner ads, advertorials, sponsorships and e-newsletters.
"…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."
So with the expanded availability and usage of mobile devices and the adoption of IAB standards the industry is starting to see rapid increase in monetization. That makes sense to me, more people with more devices able to receive the standard video ads means more revenue generating opportunities.
That's a Wrap
I didn't get a chance to see the full report from Frost & Sullivan, just some summary findings. But it certainly seems like you, as advertisers and marketers, might do well to start looking into getting your online video ads and content placed down in Australia, provided that it's a target market for the products or brands you're working with. It might not have been a robust and widespread market in the past but it's rapidly evolving and that means if you start looking down there now, you'll be ahead of its continued, massive growth spurt for the next couple year.