Oz online video growth to underpin US$690.7MN ad sector by 2019
| 29 October 2014
Australia's online video advertising market is set to generate AUD780 million (US$690.7 million) by 2019, according to a new report from Frost & Sullivan.
Online video consumption in Australia is growing significantly, with around 11.6 million Australian Internet users aged 15 to 65 (or 83%) having watched a streamed video during the past six months, compared to 68% in 2012.
The proportion of Australians in the same age group that watch video at least once a month on a smartphone has increased from 34% in 2013 to 51% in 2014. Those viewing on tablets have increased from 29% to 47% in the same time period, claims Frost & Sullivan's Australian Online Video Market 2014.
This growth is reflected in the country's online video advertising market, which grew by 60% in the 12 months to June 2014, accelerating over the growth of 55% in the previous year. The online video advertising market is predicted to grow from AUD198 million ($175 million) in 2014 to AUD780 million ($690.7 million) in 2019, with growth rates tapering off as the market matures.
"Several factors are stimulating consumption of online video in Australia. There is a higher and growing proportion of longer form content of all online video content watched, and a growing proportion is premium content such as movies or TV shows. Viewing patterns are being aided by improving data allowances from internet service providers, and a greater range of content availability from subscription video-on-demand (SVOD) providers," said Phil Harpur, senior research manager, Australia & New Zealand ICT Practice, Frost & Sullivan.
Researchers discovered news is the most popular type of content viewed by Australians on mobile devices, with 21% of consumers watching it on most days, and a further 24% watch it, on average, at least once a month. Live sports are also being increasingly viewed on mobile devices.
"Online video content is now a core part of the strategy of many online publishers from both a content and advertising perspective. Local online news sites are incorporating more online video content and those produced by online publishers such as Fairfax Media and Yahoo!7 continues to evolve. However, there is still a lack of locally produced ad funded content; a key reason Australians view the majority of popular video content like music, gaming, sports, and movies from overseas websites," added Harpur.