Most Aussies Prefer Free Ad-Sponsored Content Rather Than Paying For It: IAB

Most Aussies Prefer Free Ad-Sponsored Content Rather Than Paying For It: IAB

A comprehensive new IAB study conducted across 24 countries has revealed that mobile video consumption in Australia extends beyond just short-form content, with 30 percent watching long-form content on their phones on a daily basis.

Karen Terranova
Posted by Karen Terranova

The study, “Mobile Video 2015: A Global Perspective”, also shows 33 percent are watching more video on their smartphone than a year ago, while 14 percent say they watch less TV due to smartphone video consumption.  Specifically, 22 percent have watched a TV show on their smartphone in the past three months and 21 percent have watched a movie.

“This study galvanizes the importance of mobile video, with the rise in consumption a reflection of both the quality and quantity of content offerings that are being made with smaller screens in mind,” said Alice Manners, CEO of IAB Australia. “Video content these days is somewhat of a moveable feast, and our smartphones and tablets are an integral part of that.”

Key among the findings is the type of content viewed on phones and the manner in which it is discovered. Topping the type of content most often watched on smartphones in Australia is funny short videos and viral videos at 29 percent; 13 percent watch music videos; 10 percent watch sports; and eight percent most often watch news. Consumers mostly discover this content directly via content providers and from social media.

There is also good news for advertisers in the report, with 15 percent saying they are directed to video content from advertising. While advertising is prominent it is not seen as hindering the viewing experience, with 77 percent preferring free, ad-sponsored content to payment options. Fifty-one percent say they have watched pre-roll, mid-roll or post-roll ads and think they are natural and very common as a type of advertising, with 42 percent saying they have seen sponsor messages in their video content.

Most Australians say they have seen video ads that are in some way tailored to their interests. Opinions on how ads should be tailored vary, but 34 percent say it should be related to the content of the video.

“I think the study also shows that, for the most part, video advertising has learnt the lessons of its predecessors in regards to taste and placement,” said Manners. “Four out of five Australians prefer free video with ads on their phones versus paying for no ads, which is good news for the industry.”

Also among the findings is information on when and where we prefer to watch mobile video, with most of the content viewed between 5 pm to 11 pm, and 45 percent saying they watch video between 8-11 pm. Commuting to and from work was a particularly good time to watch mobile video, according to 19 percent of respondents.

Data usage remains a primary consideration affecting video consumption on Australian screens, with 37 percent saying they only watch video with a Wi-Fi connection and 28 percent saying they would watch more video content on their device if it didn’t eat into their data plan as much.