Australia poised for growth explosion in online video market
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.
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/