Today, Brightcove & TubeMogul released the Online Video & Media Industry Quarterly Research Report for the second quarter of 2010. The report examines online video discovery, usage and engagement data from a sample of nearly 2,000 news and entertainment websites representing 3.4 billion video streams.
In Q2, we also included a special feature focusing on brand marketers and online video based on a survey of more than 300 senior-level brand manager from leading business-to-business and consumer brands, as well as analysis from platform data from marketing and e-commerce websites.
Notable findings include:
- Online video continues to be an extremely fast-growing part of the media industry. More people are watching more video across the board. In Q2, unique viewers increased on average by 2.8 percent per month, with consumers watching 11 percent more videos month-over month compared to last quarter.
- In terms of stream volume, TV broadcasters and pure-play Web media properties are on top. But newspaper growth is surging. In Q2, video consumption increased by 65 percent on the back sustained coverage of the Gulf oil disaster.
- Facebook and Twitter are becoming important traffic drivers for video. While the majority of video traffic comes from direct referrals and Google, Facebook and Twitter are growing faster than search engines. Before year's end, Facebook will surpass Yahoo! for video referral traffic. (Facebook growing at 48 percent / month; Twitter is growing at 38 percent / month; Yahoo! is growing at 35 percent / month; Google is 15 percent growth / month).
- Where video viewers come from is related to engagement. For newspapers and magazines, viewers who find their video content via Facebook watch video clips for a longer period of time than from almost any other source. For example, consumers who find newspaper video via Facebook on average watch video clips longer (1:23 minutes) than those who find video via Yahoo! (1:17 minutes), Bing (1:03 minutes) or Twitter (1:16 minutes). Similarly for magazine websites, viewers who originate from Facebook watch on average 1:28 minutes compared to 1:18 minutes for Google, 1:17 minutes for Yahoo!, and 1:20 minutes for Twitter.
- Where they watch video is also important. Consumers are more engaged with video content on official media websites vs. portals and other third-party destination sites that syndicate their content. For example, on average consumers watch around 3:00 minutes per view on TV network websites vs. just 1:5 minutes on third party sites that embed syndicated content. Similarly, for newspapers, consumers watch on average 1:24 minutes on-site vs. 1:10 minutes off-site, for magazines 1:19 minutes on-site vs. 1:12 minutes off-site
- Newspapers offer video clips for syndication and embedding on third-party sites more than any other media vertical. A full 13.6 percent of video views are happening off-site compared to magazine video content which only does 5.7 off-site and broadcasters who do 1.9 percent.
Brand Marketers & Online Video
- Brands keep video content pretty tightly controlled. Only 2.6 percent of video views happen off-site, compared to an average of 6.5 percent for media companies.
- However, off-site viewing is really important. Consumers tend to be more engaged when watching brand marketing content when it's experienced on third-party sites, blogs, and social networks, watching nearly 30 seconds more on average per video stream.
- Like media companies, referral source matters. Traffic that originates from Facebook and Twitter lead to the longest viewing times for brand marketing video content compared to Yahoo and display ads, which tie for the shortest viewing time.
Brand Manager Survey Results
- Online video is a priority for brand managers and will expand these initiatives over the coming year. 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.
- Awareness generation is still primary focus of online video campaigns. 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).
- Mobile video is going to become much more important for brand marketers over the next 12 months. 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.
The data used for the analysis included in the 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.
Analysis for the special feature focused on brand marketers and on-site video initiatives includes platform data from a sample of Brightcove brand marketing and e-commerce customers and data from 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.