According to Zenith Media, advertising spending in Australia on online video increased by 26.2 per cent to $1.4 billion and now makes up 8 per cent of the total spending in the country. If that growth is astonishing, the projected future growth rate of 24 per cent for the next three years until 2022 is eye watering. Key to this growth forecast are connected televisions, with 23 per cent of all inventory being sold through connected televisions. In Australia an increasing number of people across all demographics are consuming video.
The elderly are watching more
The average person consumes about 25 hours and 40 minutes every month. A spokesperson for Zenith says younger age groups spend even longer with some watching as many as 48 hours a month. The most significant increase in video consumption comes from Australians aged 65 or over which saw an increase of 18 per cent over the previous year. Most Australians prefer watching short form video on their mobile devices and the format tends to resonate most with younger audiences aged between 18 to 34.
YouTube still the go to
One example of this trend is YouTube where 76 per cent of viewing time takes place on tablets and smartphones. In contrast, long form content requires television screens with 8.1 million Australians saying they us a TV screen to access internet content. This means connected televisions continue to be a point of differentiation for both content creators and publishers. According to research published by Roy Morgan, more than 14 million Australian aged 14 and above have a subscription to a paid service, an increase of 7.9 per cent from the previous year.
Video on Demand
Video on demand across multiple devices have been the main drivers of online video growth. However, with an increasing number of sources of content and subscription services, consumers will make decisions around the quality of the content on offer as well as pricing and valued for money. Disney+ and Apple TV+ are set to arrive imminently and there has been plenty of speculation in the market surrounding their potential impact on Netflix and Stan. Both services have grown by 17.6 per cent and 43.2 per cent respectively year on year. In terms of Broadcast Video on Demand (BVOD), the amount of time rose by 76 per cent year on year.