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Reading: Study: Demand for New Video Formats Set To Explode
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B&T > Advertising > Study: Demand for New Video Formats Set To Explode
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Study: Demand for New Video Formats Set To Explode

Staff Writers
Published on: 22nd May 2017 at 9:16 AM
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Findings from a new global research study commissioned by AOL show that Aussie media buyers and advertisers are gearing up for a dynamic 12 months ahead, as new video formats and approaches to media explode into the market.

A significant 65 per cent of local media agencies are currently buying or plan to buy VR digital video in the next year, and believe there is a place for VR in the digital video marketplace – above global expectations (60 per cent).

Furthermore, 79 per cent of Aussie media agencies believe new video formats will provide a better consumer experience – on par with global expectations.

Using programmatic to drive change

The survey also found that Aussie media buyers are some of the most prepared in the world to embrace change.

Locally, four per cent of buyers expect to go ‘all in’ with programmatic, and increase spending by more than 100 per cent. This is the highest rate in the world, in which just two per cent expect to list spending by more than 100 per cent.

Of organisations expecting to increase spending to programmatic by over 50 per cent, almost a quarter (22 per cent) of Australian buyers plan to lift spending to that extent, which is again ahead of the global trend of 18 per cent.

Sellers, however, expect more muted interest, with only one per cent of sellers in Australia expecting programmatic spend to increase by over 100 per cent, compared with five per cent globally, while 22 per cent of sellers expect spending to increase by over 50 per cent – well below global expectations (33 per cent).

One of the challenges holding programmatic back in Australia is a lack of expertise, according to the study, with 61 per cent of the local media industry reporting a lack of expertise as an obstacle in selling video inventory programmatically.

Australia is the only market where this is the principle concern, and is well over the global trend of 30 per cent).

Other major concerns are brand safety (55 per cent), the perceived risk of losing a direct buyer relationship (45 per cent) and a lack of existing process and systems (45 per cent).

How are consumers experiencing content

Across the Aussie market, and across all devices, 65 per cent of consumers are watching some kind of video daily, and 59 per cent watch more video now than they did a year ago.

The study found that 65 per cent of consumers prefer to watch content online or through a connected TV due to the convenience and flexibility that it offers.

Looking at consumers’ video-watching habits, 72 per cent watch videos of less than one minute at least once a week, and 74 per cent watch videos between one minute and five minutes in length.

This is a significant contrast to people who watch longer videos – just 55 per cent of people watch videos that are 10 to 20 minutes long each week, and only 57 per cent of people watched videos longer than 20 minutes.

According to the survey, 31 per cent of consumers discover video through social feeds, and a further 31 per cent get content from people they know.

Mobile spending on the rise (but not so much in Australia)

Almost half (44 per cent) of Aussie advertisers expect to increase mobile video spend by at least 25 per cent over the next year, while 46 per cent of publishers expect to see the same increase in spending.

Globally, 47 per cent of advertisers and 57 per cent of publishers expect to see a 25 per cent increase in investment into mobile video.

Growth expected to come from different places for publishers and advertisers

In total, 42 per cent of advertisers reported that they believe “social media video offerings” and “better targeting and personalisation of video ads” will be the top growth drivers in digital video.

Meanwhile, for publishers, the demand’s in the quality – only 33 per cent of publishers believe that social media video offerings will drive growth, but 67 per cent of them believe “better quality creative” will drive growth and revenue.

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Staff Writers
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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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