As online videos and media-based monetization of that content become more mainstream, ad views have skyrocketed. This year has seen 97 percent video view growth, but video ads have grown even more, with 7.2 billion ad views – a 128 percent increase.
As noted in the Q3 Video Monetization Report by Free Wheel, video views have seen a dramatic rise over the last year. In the first three quarters 2010, 6 billion videos were watched. In the same period this year, 11.8 billion videos were watched.
Additionally, the average length of the videos and the commercial saturation of videos has increased. Long-form content (e.g., TV shows watched on the Internet) now has an average of 5.02 ads per video, compared to 3.1 ads per long-form video in 2010. Both short-form content (e.g., shorter YouTube clips) and mid-form content (e.g., longer YouTube clips) continue to see an increase in ad saturation; short-form content now averages 0.45 ads per video while mid-form content averages 1.02 ads per video.
Free Wheel notes, however, that the increase in ad saturation hasn’t decreased the completion rate for videos. Even if some are frustrated with video ads, it doesn’t seem to impact their willingness to complete the video.
Online videos showed visible trends for popular viewing hours, though those trends were not stable from form to form. While both short- and mid-form content spiked in the 2 p.m. to 4 p.m. time (i.e., right toward the end of the work day), long-form content grows more gradually, seeing its best figures in the 9 p.m. to 11 p.m. hours.
Some portion of the growth, at least, can be blamed on the rise of mobile devices as a medium to watch web videos with. Mobile viewing is on the rise on the whole, with Android and iPad devices seeing the strongest growth; Android grew 7 percent as a portion of total wireless views from Q2 while the iPad grew to 15 percent.
What this means, among other things, is that the online advertising medium is becoming more and more like the TV advertising medium. The difference is in cost, interaction, and monetization – but with trends continuing as they have been, video ads are likely to become the vital parts of any business’s online marketing strategy.
What video advertising do you do already? Do you think the video trends will continue in this way, or will they begin to taper? What will influence this market? And why should you, me, and our clients care?