This is the second part of a highly visual and data-rich industry report on the latest online video trends emerging around brands and e-commerce websites.
Photo credit: Michele Piacquadio
While Part 1 provided a directional snapshot on the emerging 2010 trends in the online video landscape, Part 2 of this report introduces you to hard data regarding the penetration and consumption of online video used for commercial and marketing purposes.
Here some key 2010 takeaways from the report:
Brightcove and TubeMogul: Online Video and The Media Industry by TubeMogul and Brightcove
Brand and E-Commerce On-Site Video Initiatives The following section focuses on a sample of brands and e-commerce sites (referred to as "brands" below) powered by Brightcove. Media company averages were not weighted by volume, but rather by type so as not to give any one type (i.e. broadcasters) outsized influence.
Key Findings
Platform Data
Online Video Trends
Engagement
Completion Rates By Quarters Viewers watched brand and e-commerce videos an average of 1:04 minutes per stream in the second quarter of 2010, up slightly from 1:02 minutes in the first quarter. Completion rates also held steady compared to the first quarter of 2010, with around 38 percent watching a completed video.
Discovery
Average Monthly Growth In Referred Video Streams Overall, the majority of video streams (92.1 percent) were discovered via direct traffic or within a brand’s own site. From third-party traffic, 40.1 percent of video streams came from Google, 16.8 percent from Yahoo, 13.1 percent from Bing, 7.9 percent from Facebook, 2.7 percent from AOL and 0.9 percent from Twitter. In terms of growth in streams by discovery source, Facebook and Twitter are growing much faster than the major search engines.
Distribution
Average Minutes Watched Per View Only 2.6 percent of all brand views occurred through off-site embeds, which is less than all media categories except for broadcasters. Viewers watching brand and e-commerce videos off-site tend to watch longer than viewers watching on a brand’s own site.
Average Minutes Watched Per View By Source For brands, viewers coming from Facebook and Twitter lead to the longest viewing times, while Yahoo! searches and display ads tied for shortest. Compared to media companies, brands had shorter viewing-times, partly due to the nature of the content and the fact that they tend to post videos that are shorter in length.
Geography
Top Regions Percentage of Total Views In terms of geography, nearly 90 percent of brand views came from either the U.S. or Europe. More than half of all brand / e-commerce views occurred in the U.S. Brands also had fewer views coming from the Asia-Pacific region or the rest of the world than media companies. U.S. viewers watched brand videos 20 to 54 seconds more than viewers from other regions, demonstrating more time-spent with brand-related online video content. Europeans watched news and entertainment video content even longer than U.S. viewers, on average, but spent less time with brand videos than any other region.
Brand Manager Survey Results
Average MInutes Watched Per Region In Q2 of 2010, Brightcove and TubeMogul conducted a survey of more than 300 brand managers representing major consumer and B2B organizations, including dozens of Fortune 500 companies, about their on-site video initiatives. The sample included customers across North America and Europe.
Online Video Investment
Do You Currently Use Video On Your Brand Website? Nearly 85 percent of brand managers surveyed indicated that they are currently using online video on brand websites for marketing products and services. For those currently not using online video, 75 percent said they plan to add online video to their websites within the next 12 months.
Percentage of Marketing Budgets Used For On-Site Video Initiatives Added by MasterNewMedia Editors While brands devote a relatively small portion of their overall marketing budgets to on-site video initiatives (50 percent devote less than 10 percent; 23 percent devote less 25 percent; 22 percent devote between 25 and 50 percent), nearly 60 percent said they plan to spend more on their website video initiatives within the next 12 months.
Online Video Strategy
Online Video Initiatives Primary Purposes 66 percent of brand managers said the primary purpose of their online video initiatives are focused on branding and awareness, 21 percent are using video for direct response and lead generation campaigns, and 12 percent to drive ecommerce and sales initiatives.
Most Important Benefit of The Video Investment The majority of those using online video to drive e-commerce and sales initiatives have found video to be highly effective at increasing customer engagement and time spent on the brand website (53 percent) and increasing sales conversions (35 percent). 12 percent of respondents noted that video has helped to reduce product returns and customer support calls, while also reducing shopping cart abandonment.
Mobile Video Initiatives
Mobile Video Startegy Currently Adoption The rapid growth of smartphone adoption throughout the world continues to drive an enormous amount of mobile video consumption amongst consumers. However, mobile video is still an emerging focus for many of the brand managers that we surveyed. More than 60 percent said that mobile video is not currently part of their marketing initiatives, though the same 60 percent also said they plan to add mobile video to their marketing mix in the next 12 months.
Mobile Apps Most Common Platforms When it comes to mobile apps, 42 percent of brand managers indicated that they currently have a mobile app to promote their brand, while 57 percent do not. Those that do have mobile apps are primarily focused on building apps for Apple iOS devices (100 percent), Android OS (27 percent) and other platforms including Windows, Research in Motion BlackBerry and Symbian (47 percent).
Do You Plan To Add Video Content To Your Brand Mobile Apps? Of the respondents that do have mobile apps for their brands, only 21 percent indicated their mobile apps include video content. However, a full 70 percent of brand managers said they plan to add video to their mobile app strategy in the next 12 months.
Distribution and Social Media
VIdeo Distribution: Brand Website vs. YouTube 80 percent of the brand managers surveyed indicated that they use a blended distribution strategy that involves video content on their brand websites, as well as on YouTube. 12 percent distribute video content exclusively on YouTube, while three percent feature video content only on their brand websites.
Brands Currently Distributing Video Through Social Media Channels Like Facebook Nearly 90 percent of those surveyed distribute video content through social media destinations like Facebook. Additionally, respondents were split down the middle when it comes to having user-generated content as part of their online video initiatives.
Methodology The data used for the analysis included in this report was taken from a cross section sample of Brightcove customers representing media industry verticals. While the sample aggregates a sizable data set, it is not intended to be statistically representative of the online video industry as a whole, or of Brightcove’s entire customer base. Instead, the data analysis is intended to provide a directional snapshot of media trends and inform additional research initiatives focused on the online video industry. This research report draws on a number of data sources:
End of Part 2 Online Video Trends: The Complete Media Industry Report - Part 1
Originally prepared by TubeMogul and Brightcove, and first published on TubeMogul on September 13th, 2010 as Brightcove & TubeMogul: Online Video & The Media Industry
About TubeMogul TubeMogul is an online video analytics and advertising platform that processes billions of video streams every month from the Internet’s top publishers. More than 200,000 users rely on TubeMogul’s distribution and analytics, and hundreds of marketing agencies and brand advertisers are among the company’s clients.
About Brightcove Brightcove is an on-demand software platform that media companies and marketers use to publish and distribute video on the web, mobile devices, and Internet-connected TVs. Brightcove has more than 1,800 customers in 48 countries, which operate video across nearly 10,000 websites, including many of the most popular news and entertainment destinations on the web.
Photo credits: Graphs - Elia Lombardi Brand and E-Commerce On-Site Video Initiatives - Microsoft Platform Data - Michael Osterrieder Online Video Trends - vpopovic Methodology - Dmitriy Shironosov
- Only 2.6 percent of all brand views occurred through off-site embeds, which is less than all media categories except for broadcasters.
- Only 38 percent of viewers is reported watching a completed video.
- More than 84% percent of brand managers surveyed say they are currently using online video on brand websites for marketing products and services.
Brightcove and TubeMogul: Online Video and The Media Industry by TubeMogul and Brightcove
Brand and E-Commerce On-Site Video Initiatives The following section focuses on a sample of brands and e-commerce sites (referred to as "brands" below) powered by Brightcove. Media company averages were not weighted by volume, but rather by type so as not to give any one type (i.e. broadcasters) outsized influence.
Key Findings
Platform Data
- Viewers in Q2 watched brand marketing and e-commerce videos an average of 1:04 minutes per stream, compared to 2:00 minutes per stream of online video content from media companies.
- 2.6 percent of views for brand marketing and e-commerce video content was viewed off-site through embedded video players on third party sites as compared to 6.5 percent of off-site video for media companies.
- The average length of brand and e-commerce video views via embedded players on third-party sites in Q2 was 1:42 minutes compared to 1:02 minutes on the brand websites. By contrast, media companies generated an average of 1:00 minute per view for video content on third-party sites compared to an average of 2:00 minutes per view on the official news and entertainment websites.
- Referral traffic from Facebook and Twitter lead to the longest viewing times, while the video views that originate from Yahoo! search and display ads tied for shortest.
Online Video Trends
- For the vast majority of brand managers (85 percent), website video is currently part of their marketing mix. More than 60 percent say they plan to invest more in on-site video initiatives in the next 12 months.
- Survey respondents indicated that the primary purpose for their on-site video initiatives is branding and awareness (66 percent) followed by direct response / lead generation (21 percent) and e-commerce / sales (12 percent).
- Brand managers have embraced blended distribution strategies with 80 percent including video on their own brand sites, as well as YouTube and 90 percent distributing video through Facebook.
- While only 21 percent of brand managers indicated that their current mobile app strategy included video, 70 said they plan to add video to their mobile apps over the next 12 months.
Engagement
Completion Rates By Quarters Viewers watched brand and e-commerce videos an average of 1:04 minutes per stream in the second quarter of 2010, up slightly from 1:02 minutes in the first quarter. Completion rates also held steady compared to the first quarter of 2010, with around 38 percent watching a completed video.
Discovery
Average Monthly Growth In Referred Video Streams Overall, the majority of video streams (92.1 percent) were discovered via direct traffic or within a brand’s own site. From third-party traffic, 40.1 percent of video streams came from Google, 16.8 percent from Yahoo, 13.1 percent from Bing, 7.9 percent from Facebook, 2.7 percent from AOL and 0.9 percent from Twitter. In terms of growth in streams by discovery source, Facebook and Twitter are growing much faster than the major search engines.
Distribution
Average Minutes Watched Per View Only 2.6 percent of all brand views occurred through off-site embeds, which is less than all media categories except for broadcasters. Viewers watching brand and e-commerce videos off-site tend to watch longer than viewers watching on a brand’s own site.
Average Minutes Watched Per View By Source For brands, viewers coming from Facebook and Twitter lead to the longest viewing times, while Yahoo! searches and display ads tied for shortest. Compared to media companies, brands had shorter viewing-times, partly due to the nature of the content and the fact that they tend to post videos that are shorter in length.
Geography
Top Regions Percentage of Total Views In terms of geography, nearly 90 percent of brand views came from either the U.S. or Europe. More than half of all brand / e-commerce views occurred in the U.S. Brands also had fewer views coming from the Asia-Pacific region or the rest of the world than media companies. U.S. viewers watched brand videos 20 to 54 seconds more than viewers from other regions, demonstrating more time-spent with brand-related online video content. Europeans watched news and entertainment video content even longer than U.S. viewers, on average, but spent less time with brand videos than any other region.
Brand Manager Survey Results
Average MInutes Watched Per Region In Q2 of 2010, Brightcove and TubeMogul conducted a survey of more than 300 brand managers representing major consumer and B2B organizations, including dozens of Fortune 500 companies, about their on-site video initiatives. The sample included customers across North America and Europe.
Online Video Investment
Do You Currently Use Video On Your Brand Website? Nearly 85 percent of brand managers surveyed indicated that they are currently using online video on brand websites for marketing products and services. For those currently not using online video, 75 percent said they plan to add online video to their websites within the next 12 months.
Percentage of Marketing Budgets Used For On-Site Video Initiatives Added by MasterNewMedia Editors While brands devote a relatively small portion of their overall marketing budgets to on-site video initiatives (50 percent devote less than 10 percent; 23 percent devote less 25 percent; 22 percent devote between 25 and 50 percent), nearly 60 percent said they plan to spend more on their website video initiatives within the next 12 months.
Online Video Strategy
Online Video Initiatives Primary Purposes 66 percent of brand managers said the primary purpose of their online video initiatives are focused on branding and awareness, 21 percent are using video for direct response and lead generation campaigns, and 12 percent to drive ecommerce and sales initiatives.
Most Important Benefit of The Video Investment The majority of those using online video to drive e-commerce and sales initiatives have found video to be highly effective at increasing customer engagement and time spent on the brand website (53 percent) and increasing sales conversions (35 percent). 12 percent of respondents noted that video has helped to reduce product returns and customer support calls, while also reducing shopping cart abandonment.
Mobile Video Initiatives
Mobile Video Startegy Currently Adoption The rapid growth of smartphone adoption throughout the world continues to drive an enormous amount of mobile video consumption amongst consumers. However, mobile video is still an emerging focus for many of the brand managers that we surveyed. More than 60 percent said that mobile video is not currently part of their marketing initiatives, though the same 60 percent also said they plan to add mobile video to their marketing mix in the next 12 months.
Mobile Apps Most Common Platforms When it comes to mobile apps, 42 percent of brand managers indicated that they currently have a mobile app to promote their brand, while 57 percent do not. Those that do have mobile apps are primarily focused on building apps for Apple iOS devices (100 percent), Android OS (27 percent) and other platforms including Windows, Research in Motion BlackBerry and Symbian (47 percent).
Do You Plan To Add Video Content To Your Brand Mobile Apps? Of the respondents that do have mobile apps for their brands, only 21 percent indicated their mobile apps include video content. However, a full 70 percent of brand managers said they plan to add video to their mobile app strategy in the next 12 months.
Distribution and Social Media
VIdeo Distribution: Brand Website vs. YouTube 80 percent of the brand managers surveyed indicated that they use a blended distribution strategy that involves video content on their brand websites, as well as on YouTube. 12 percent distribute video content exclusively on YouTube, while three percent feature video content only on their brand websites.
Brands Currently Distributing Video Through Social Media Channels Like Facebook Nearly 90 percent of those surveyed distribute video content through social media destinations like Facebook. Additionally, respondents were split down the middle when it comes to having user-generated content as part of their online video initiatives.
Methodology The data used for the analysis included in this report was taken from a cross section sample of Brightcove customers representing media industry verticals. While the sample aggregates a sizable data set, it is not intended to be statistically representative of the online video industry as a whole, or of Brightcove’s entire customer base. Instead, the data analysis is intended to provide a directional snapshot of media trends and inform additional research initiatives focused on the online video industry. This research report draws on a number of data sources:
- Platform data from a sample of Brightcove media customers; and
- Consumer engagement reports based on TubeMogul’s online video analytics from this aggregate data set.
- Platform data from a sample of Brightcove brand marketing and e-commerce customers; and
- An anonymous survey of more than 300 senior-level brand managers from leading business-to-business and consumer brands, including dozens of Fortune 500 companies.
End of Part 2 Online Video Trends: The Complete Media Industry Report - Part 1
Originally prepared by TubeMogul and Brightcove, and first published on TubeMogul on September 13th, 2010 as Brightcove & TubeMogul: Online Video & The Media Industry
About TubeMogul TubeMogul is an online video analytics and advertising platform that processes billions of video streams every month from the Internet’s top publishers. More than 200,000 users rely on TubeMogul’s distribution and analytics, and hundreds of marketing agencies and brand advertisers are among the company’s clients.
About Brightcove Brightcove is an on-demand software platform that media companies and marketers use to publish and distribute video on the web, mobile devices, and Internet-connected TVs. Brightcove has more than 1,800 customers in 48 countries, which operate video across nearly 10,000 websites, including many of the most popular news and entertainment destinations on the web.
Photo credits: Graphs - Elia Lombardi Brand and E-Commerce On-Site Video Initiatives - Microsoft Platform Data - Michael Osterrieder Online Video Trends - vpopovic Methodology - Dmitriy Shironosov
