A Review of the AV Video Landscape

23/03/2018

As a nation, we are spending more time watching video content.  As consumers, we have never had it so good. The quality of video content is as high as it has ever been.  From the traditional broadcasters, such as ITV, Sky and Channel 4, to the subscription based video giants of Netflix and Amazon Prime, billions of pounds are being spent annually on amazing content to keep us entertained.

Grace Chilcott Grace Chilcott Media Executive Manchester TV online video Video on Demand
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However, the proliferation of smart devices is fast changing content consumption.

Television content remains king.  However, how and where we view that content is evolving. In 2017, live TV accounted for 57% of the video day across all individuals. This rises to 71% when you factor in Broadcast VOD (still TV content) and TV catch up (Sky+ etc).

For the same period, online video made up 43% of the average individual’s daily video viewing. The thriving video marketplace presents a clear opportunity to reach consumers.

Online video’s contribution becomes even more substantial when looking at the viewing behaviour of 16-34 year olds. Younger audiences are consuming more online video content, with live TV accounting for just 33% of their daily video viewing. Given all individuals consumed an average of 4 hours and 39 minutes of video each day in 2017 and 16-34s consumed 4 hours and 19 minutes, there is a clear opportunity to reach audiences across online video [1].

According to Ofcom, Broadcaster VOD platforms are the most popular online service to watch TV programmes and films, used by 67% of adults. This increases to 75% for adults aged 16-24. Subscription services (e.g. Netflix) are used by 45% of adults and 76% of 16-24s while 41% of adults use social media (e.g. YouTube) to watch TV and films [2].

Broadcaster VOD enables advertisers to access premium TV content as viewers catch-up on-demand. ITV, Channel 4 and Sky are amongst the broadcasters making programming available across their own catch-up platforms. VOD viewing continues to strengthen, with all commercial providers reporting significant viewing increases between 2016 and 2017; ITV’s catch-up platform ‘ITV Hub’ saw year-on-year growth of +196% while Channel 4’s ‘All4’ service saw viewing up +133% [3].

The rapid growth experienced over recent years means that VOD now delivers significant volume, with shows such as The Great British Bake Off delivering up to 2.3 million views per episode on All4 [4], while the 2017 series of Love Island delivered over 7.5 million impressions on ITV Hub [5].

The most popular screen for watching Broadcaster VOD is the TV set with 71% of VOD users opting to watch ITV Hub on the main screen, helping to emulate the premium environment & high impact of live TV. When looking at TV/film consumption across social media, smartphones & PCs/laptops become the most popular screens, showing a clear differentiation in how users consume video across different platforms [2].

Furthermore, younger family members typically don’t have control of the TV set but do have the freedom to turn to personal screens and watch what they want. As a result, both online video consumption and viewing on mobile devices for millennials tends to be above average. However, we are seeing habits of the millennial audience develop, with an increase in TV set viewing as they get their own homes and have children [6].

In line with the diversification of viewing habits, targeting options across video offerings have also developed. Broadcaster VOD viewers can be targeted by factors including location, social grade, age, gender and whether they are light linear viewers. Social platforms allow much more granular targeting including viewer interests and users who are ‘in-market’ for certain products. Additionally, interactive formats offered across some platforms allow ad delivery to be synced to real-time events, including reacting to the weather or goals and touchdowns in sporting events.

Overall, online video gives the flexibility to target both broad and granular audiences and continued growth means platforms can deliver significant volume across multiple devices, making it a key consideration for AV planning.

Key points to consider:

  • Online video consumption makes up 43% of the average individual’s daily video viewing, increasing to 67% for 16-34 year olds. This presents a significant opportunity to reach consumers across online video [1].
  • All commercial Broadcaster VOD platforms reported an increase in viewing between 2017 and 2016, with VOD now delivering significant volume [3].
  • The TV set is the most popular screen for watching Broadcaster VOD, helping to emulate the same impact as live TV. Meanwhile, smartphones and PCs/laptops are the most frequently used devices for viewing across social platforms [2].
  • Online video targeting options give the flexibility to reach granular audiences.

We understand who is watching what, where and on what device. If you need help to join the dots across video platforms and optimise your investment across the video landscape to drive maximum ROI, get in touch.

[1] ThinkBox 2017, BARB / comScore / Broadcaster stream data / IPA Touchpoints 2017 / Rentrak (https://www.thinkbox.tv/Research/Nickable-Charts/TV-viewing-and-audiences/2017-TV-viewing-report)

[2] Ofcom, Communications Marketing Report, United Kingdom, 2017 (https://www.ofcom.org.uk/__data/assets/pdf_file/0017/105074/cmr-2017-uk.pdf)

[3] GB TGI Q2 2017 vs. 2016

[4] Channel 4, 2018

[5] ITV, ITV Hub in Action, 2018

[6] IPA Touchpoints, 2016

Grace Chilcott Grace Chilcott Media Executive Manchester TV online video Video on Demand
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