Australia poised for growth explosion in online video market

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The growing popularity of mobile devices and tablets, and the preference of younger consumer age groups towards online video channels as a direct substitute for traditional TV, is boosting the growth of Australia’s online video market.

In new research just released by analyst firm Frost & Sullivan, expenditure on online video advertising in the Australian market is predicted to grow strongly at a CAGR of 31% over the next five years, increasing from $133 million this year to $513 million in 2018.

According to Frost & Sullivan, this year 87%  of  consumers  have watched TV shows and/or movies on a TV screen  at  least  once  month, a decline from 94% in 2012.

The frequency of consumers, however, viewing on tablets and smartphones increased from 20% in  2012  to  24%  this year, 27%  of smartphone users watch user-generated content  on  sites such  as YouTube on most days, while 60% do so at least once a month.

Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan says that “larger and higher resolution smartphone screens have improved the viewer experience significantly, whilst monthly data cap limits offered by mobile operators have risen significantly.”Frost & Sullivan also found that video content produced in HTML5, which is platform independent and works seamlessly across all devices, overcomes barriers to watching some forms of video content via online channels on certain devices.“Live  and  sporting  events  and  news  will be a key driver in taking the online  video  experience  to  a mainstream audience,” Harpur says.For example, watching live  news  on devices while commuting on a train,  is becoming more common and  offers  a  real  substitute  to  the  TV  lounge  room viewing.”In its analysis, Frost & Sullivan says that smartphones and tablet users typically multi-task across different devices and platforms as these mobile devices can be connected with and integrated into the overall viewing experience. “48% of tablet owners also use their tablet whilst they watch traditional TV, always or most of the time,” Harpur says.

Harpur  says that a  fundamental  change  in  the way people are now viewing TV is occurring in Australia, with consumers  now  accessing  content  through companion apps on tablets and smartphones  linked to TV shows such as State of Origin Football, while companion apps “draw audiences deeper into the TV experience and engage consumers more with their favourite shows.”

Video content producers and production houses are increasingly releasing content directly to the consumer, rather than releasing the content only via the TV broadcasting and/or pay TV networks.

According to Harpur this growing market trend poses a level of “competitive threat to the stranglehold that the major free-to-air (FTA) broadcasters have on the consumption of video content in Australia.”

He says there are significant opportunities for new video content production that is more aligned to advertiser driven demand, and that Australian portals are starting to sell more sponsored video content.

“Opportunities exist to produce short form branded content in categories such as lifestyle, female, grocery and fashion in formats such as advertorials and sponsorships. Overall market awareness of online video’s effectiveness increased significantly over the last 12 months. There is now less distinction between traditional TV broadcasting ad buying and online video ad buying.”

Written by Peter Dinham

Co-Founder of ITWire

Originally published at http://www.itwire.com/

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