The acceleration of the digital economy during 2020 has been as unprecedented as the pandemic with some observing that six years of progress has taken place in six months. As consumers adapt to social distancing measures, demand for digital services have proliferated and been adopted across a broader demographic. What used to be niche endeavours like ecommerce and video streaming are now increasingly mainstream. Such seismic shifts have profound implications for the marketing and advertising industry.
With ongoing economic uncertainty, marketing budgets are under pressure and will focus on those media channels which can efficiently and effectively reach audiences in premium environments. Australia has led other western markets in terms of over-the-top (OTT) streaming video consumption with over half the population subscribing to a video on-demand (VOD) service*. 45% of Australians spend more of their video viewing time on OTT compared to TV and UGC. As a result of COVID 37% now watch 1-2 hours more on weekdays and at weekends**.
As consumers fragment away from traditional linear TV to digital video we see the young affluent generation flocking to OTT. 18-34s make up 48% of OTT viewers in Australia vs 18% for TV, with 70% of OTT viewers earning $5k to $9.9K or more vs 55% for TV viewers**. Connected TVs are the dominant device for OTT viewing in Australia and offer brands a way to engage hard-to-reach audiences within professionally produced long form content on the big screen in the living room.
Smartphones play a critical role and are the second most used device for OTT consumption in Australia**. Although some have questioned the viewing experience on mobile and the effectiveness of the ads versus other channels and larger screens, recent research from ThinkTV Australia has proven otherwise. Using eye tracking analysis, broadcast video on-demand (BVOD) on mobile delivered higher attention, engagement and sales impact than social video on mobile and desktop, as well as traditional TV.
Whilst subscription video on-demand (SVOD) is popular in Australia, the good news for advertisers is that demand for advertising video on-demand (AVOD) is growing rapidly as consumers pull back on discretionary spend and seek alternative ways to access their favourite content. 52% of Australians said they would be more likely to choose a free service that shows ads vs 39% who’d rather pay for an ad-free experience**. As AVOD adoption grows so will the addressable audience which is a key demand from the buy-side as they seek the most efficient channels to reach audiences at scale.
As we head into 2021, video streaming will become an enduring mass consumer behaviour and of strategic importance to the advertising and marketing industry. SpotX is the video advertising platform that unifies TV, OTT and digital video. We are proud to be partnering with major media owners, agencies and brands in Australia to shape their video strategies through our advanced solutions, unique insights and market-leading service.
“OTT is For Everyone” SpotX research will launch in Jan 2021 and will include in-depth analysis of Australia plus six other APAC markets.
*Telsyte Australian Entertainment Subscription Study 2019
**SpotX OTT is for Everyone APAC study 2020
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.