Video Streaming Markets

The popularity of online streaming video has grown at an exponential rate. In 2006, over $600 million was spent on streaming server content with projections for 2013 set at $1.4 billion.

And according to a study conducted in August 2007 by advertising.com, this media reach has been highly underestimated by many marketers.

When we talk about video streaming as an advertising tool, most people imagine a target market comprised of technologically savvy under 25’s, whose primary interests lie in youth consumables such as music, TV and movies. But according to advertising.com, this is an inaccurate assumption.

Over 69% of those who watch streaming video online are over the age of 35 and use the medium as a way to catch up with world affairs, sports, travel destinations and to source DIY information.

The possibilities for reaching the over 35 population are as vast as the internet itself.

According to a recent study conducted by Hitwise, utilization of internet streaming media and video content by those over 35 has increased at a more rapid pace than their younger counterparts since 2005, creating a strong market force within the online landscape.

For example, ‘silver surfers’- online users over the age of 55 - comprise more than 22% of the overall online market and are estimated to dominate the demographic of internet consumers within the next five years.

And socioeconomic backgrounds show little variation in usage between demographic groups, lower income silver surfers comprise 29% of the online travel market compared to 30% for their more affluent counterparts.

One of the fastest growing sectors for streaming video is in TV programme viewership. Rather than replacing TV entirely, the advent of online streaming video is allowing consumers the freedom to view missed TV programmes and movies at their leisure. 51% of Hitwise survey respondents stated they use the internet to see regularly scheduled programmes which they missed due to other engagements. However, 80% stated this did not diminish their overall TV watch time.

And strategically placed online advertisements yielded far greater viewer brand recall than traditional TV and radio marketing streams. The interactive nature of streaming videos engages consumers in ways traditional methodology cannot.

Many TV viewers tend to walk away during commercials, treating them as an intermission from their programme selection, or filter out advertising content entirely using TiVo personal video recorders. Online viewers, however, are content to watch short advertisements whilst waiting for their featured programme to appear.

With 94% of respondents stating they preferred short video advertisements to a subscription fee based service on their frequented websites, it’s easy to see how beneficial this methodology can be to a communications plan. But most respondents were keen to point out that existing advertising slots are too long and would prefer shorter ads in the future.

Overall, the market for streaming video is coming into its own throughout every market sector. Whether being used as a navigational aid, such as video recorded human assistants on websites, or as featured content for news, the necessity for keeping up with its demand is becoming a vital component for successful internet marketing strategies.