Chinese Audience is the number 2 Consumer of videos [report]

China Has the Largest Home & Work Internet Population in the World as 347 Million Users Represent 54 Percent of All Internet Users in Asia Pacific according to new report.

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The 2013 China–Taiwan–Hong Kong  Digital Future in Focus report, providing an overview of key digital media usage trends in the region. The report includes detailed data and analysis on the prevailing activity in the social media, online video, search, and e-commerce markets. Also included is analysis of online market trends in Online Retail & Travel, Real Estate, News & Information, Career Services & Development, Automotive, and Beauty, Fashion & Style.

Key insights from the 2013 China–Taiwan–Hong Kong Digital Future in Focus report (#FutureinFocus) include:

  • China Has the Largest Home & Work Internet Population in the World as 347 Million Users Represent 54 Percent of All Internet Users in Asia Pacific
  • Young males between the ages of 15-24 are the heaviest internet users in Hong Kong, spending more than twice the amount of time online as compared to their mainland Chinese counterparts.
  • The online audience in mainland China skews younger than the global average, whilst Hong Kong’s online audience is more mature with 40 percent of internet users age 45 and older.
  • 87 percent of China’s web population views an average of 30 billion online videos each month, though Hong Kong has a higher videos per viewer ratio.
  • Chinese users spend nearly 2.5 hours on retail sites every month, the highest in the region and 187 percent higher than the global average

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At ReeldealHD stock video we create new content based on the latest trends for emerging markets. Our latest production covers Pharmaceutical/Logistics and Science; We are also covering Business (East meets West) beauty and a modern couple in an asperational apartment and as tourist in London.

 Are you interested in our content please get in touch erwin@reeldealhd.com if you like to license any of our clips or become a reseller.

 

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33% of tablet owners watch 1 Hour Of Video Content Per Day

In just a few short years the tablet has become a hugely popular second screen of choice for 33% of American adults, and while it may not be an essential item, its affordability means that it is within reach of an increasing number of users. New research from YuMe shows how we use our tablets and it’s no surprise to see that a third of of us devote an hour a day to them, with the minimum of distraction. As for video consumption, 100% of those tablet users surveyed confirmed that they watch videos at home, 66% watch videos on holiday, 22% watch videos while commuting or at work and 13% will watch video content while out drinking or dining.

33% of tablet owning adults will watch video for up to 1 hour a day on weekdays while 24% will watch up to two hours of content on the weekends. 8% of adults will watch around 4 hours of video content at the weekends, presumably due to less distractions.

Tablet use also lead to better recall of video ads, according to the report, with 57% of those asked able to recall a video ad without prompting. That compares favourably against the smartphone (49%) and the TV (45%). Advertisers that created mobile specific ad content were also perceived as being ‘cooler’.

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Over the past four years, the percent of American adult internet users who upload or post videos online has doubled from 14% in 2009 to 31% today. That includes 18% of adult internet users who post videos they have created or recorded themselves—many of whom hope their creations go viral. The share of online adults who watch or download videos has also grown from 69% of internet users in 2009 to 78% today, and mobile phones have become a key part of the video viewing and creating experience.

The increasing popularity of social networking sites and the proliferation of cell phones have helped spur the growing online video culture
The growing popularity of posting and watching online videos is a natural byproduct of the increasing percent of adults who use social network sites such as Facebook, as well as the proliferation of cell phones which make it relatively easy to watch, record, and post videos online. Fully 72% of online adults now use social networking sites, which provide a venue for video sharing and watching. The current survey shows that:

  • 71% of adults who post videos online do so on social networking sites.
  • 58% of adults who watch online videos do so on social networking sites.

Similarly, as the percent of American adults who own a cell phone has reached 91%4 , it is not  uncommon for adults to use these devices to participate in the online video culture. Among adult cell phone owners:

  • 41% use their phones to watch video.
  •  40% use their phones to record video.
  • 20% use their phones to post videos online.

More recently, apps have emerged which bring the convenience of cell phones together with the
popularity of online video. In the current survey:

  • 23% of adults who post videos online do so using a mobile app such as Vine.
  • 17% of adults who watch videos online do so using a mobile app

Walmart Turn To Online Video with “get on the shelf” original series

Walmart, the world’s largest retailer and biggest private employer, has launched its first ever web series aimed at giving the American public the opportunity to decide which new products get to go on the their shelves, both on and offline. Wrapped up in a reality series format, the first episode features products from four U.S. entrepreneurs, picked from thousands of entrants to a crowd sourcing product contest. The four showcase their merchandise and the one that proves the most popular with the audience wins the chance to see the retail giant stock and sell it. There are five weekly shows in the series, the first one is launched today with the others following suit on a weekly basis through to October 22nd. Products included on the first show include a line of gourmet scented stuffed animals and a brilliant wheelchair for infirm or injured dogs. You can see the full list of finalists and their wareshere (Elvis Presley Bedding Collection anyone?)

Viewers can visit the Get On The Shelf site and vote online for their favourite product/entrepreneur each week. The series is produced by the digital studio team behind Shark Tank’s Mark Burnett so the format is a pretty tried and tested one. To drive further engagement, viewers are given just 72 hours after each episode goes live to vote. The winner, based on the amount of pre-orders gained, will receive additional marketing support from Walmart. You can see the first show here (at time of writing it’s still shown as unlisted on YouTube):

Kelly Thompson, Senior VP of Merchandising for Walmart.com is excited for the project and confirms that:

Get on the Shelf celebrates the resilient and tenacious spirit of American entrepreneurs, many of whom have been working hard for a big break like this. The web series creates more exposure for finalists to share their inspiring stories, which makes for captivating reality TV that’s also interactive since American consumers can vote for the next great product at Walmart.com.

Will Video Ads Sink Facebook? Social Media Giant Faces User Backlash

The video ad market is on the cusp of a multi-billion dollar expansion that could transform Facebook and Instagram into syndication platforms putting pressure on the existing TV model, but those users may not accept commercials as readily as major online video sites.

TV advertising is a big business, but online video ads are projected to grow even more rapidly. eMarketer says that advertisers in the U.S. will spend $66.4 billion on TV ads this year, compared to $4.1 billion online. However, it foresees 40 percent growth in video ads.

Facebook Has the Potential To Generate $1 Billion in Ad Revenue

Morgan Stanley financial analysts are predicting that Facebook could generate over $1 billion next year in video ad revenues and as much as $6.5 billion by 2020. Advertisers are willing to pay a premium to Facebook because its ability to reach the coveted 25-34 demographic can exceed TV networks’ reach, Nielsen has found.

Facebook is especially attractive to advertisers during primetime hours. Nielsen has found that it is “a strong driver of duplicated reach—meaning that a marketer could reach the same consumers online and on TV.” Facebook complements TV ads and is overturning the perception that the Internet is only for niche audiences by becoming a channel for “broadly messaged, brand advertising,” Nielsen said in a July report. What’s important to note is that Facebook has served as extension to the main TV experience by bringing value through second screen activities. The Nielsen report noted that: The emergence of far-reaching publishers like Facebook, however, means that marketers now have another option for reaching consumers en masse. Likewise, the availability of true cross-screen metrics enables them to understand how digital can reinforce and complement their TV investment.

Facebook User Attention Span Is An Issue

Facebook has the scale to do this with its 1.15 billion monthly active users, but actual consumer interactions with its video ads could deviate from what analysts are expecting. Consumers are willing to sit through 30 or 60-second advertisements on online video platforms like YouTube,Hulu and UVidi, because they want access to the content. The social consumer is different – they don’t have the same attention span.

Moreover, Facebook doesn’t have a content strategy to hold users’ attention. The majority of the content that it distributes is user-generated and short-form, thus greatly reducing the likelihood that anyone is going to want to sit through a commercial to watch their friend’s cat fall off a couch. As video consumption evolves, we are seeing that 15 and 30 second pre-rolls are effective when users want premium content. It’s likely you will see much shorter messaging on social platforms with pre-roll that is 5 to 8 seconds long. Early testers will try to create branded content and use Facebook as a distribution source, but currently it can’t compete with the big video platforms because it won’t deliver equivalent results with its existing videos.

That’s the challenge: Facebook offers a very different customer experience from other content distribution sites. A model that could work would be to complement a TV advertising package with a Facebook extension that includes video to target mobile devices. More than 40 percent of Facebook’s advertising revenue and 68 percent of its traffic come from mobile customers, according to its Q2 earnings call in late July. That’s assuming users want ads.

Consumer sentiment could be why Facebook is moving so cautiously with video ads. It wants its ads to display in ways that aren’t distracting or alienating towards users the Wall Street Journal reports. “Striking that balance between consumer happiness and commercial opportunity has been a challenge for the young company, leading to delays and frustrations among the marketers it is trying to woo,” the report said.

While Facebook tinkers, established video platforms are better positioned to drawn display budget because of the duration of the videos. Morgan Stanley predicts that YouTube will generate $5.7 billion in video ad revenue next year, which is estimated to grow to approximately $17 billion by 2019.

Facebook could meet the street’s expectations, but that’s only true if consumers buy in. Content is king and will influence consumer interactions with video advertisements.

Boosted by YouTube, Online Video Booming in the UK

Around two-thirds of all UK internet users watch video online, and the time spent with video continues to rise

The world’s most popular video site marked its eighth birthday in February 2013. YouTube, owned by Google since 2006, now boasts over 800 million viewers around the world each month.

And tens of millions of these video viewers live in the UK. The UK’s Office for Communications (Ofcom) reported that 63% of the country’s internet users watched video online in August 2012.

Engagement with online video is rising. According to Experian Hitwise, online video viewing accounted for 5% of all UK web usage in February this year. UK residents made 1.06 billion visits to video sites that month, compared to 868 million in February 2012. In the two years since February 2011, the number of visits to video websites rose by an estimated 71%.

UK viewers are also spending more time with video, according to Experian Hitwise—a remarkable 323 million hours in February 2013. That represented year-over-year growth of 45%.

Mobile devices such as smartphones and tablets are contributing to the escalation in UK video habits, though most viewing still takes place at home. The January 2013 “Consumer Mobile Streaming Survey” by Rovi Corporation found that nearly 80% of UK respondents who watched video on a tablet did so in the home environment. Even people using a mobile phone to stream video were much more likely to do so at home vs. at work or during their commuting time.

Compared to tablet users in other EU-5 countries, those in the UK who streamed video generally favored movies and TV shows over user-generated content, according to Rovi.

The boom in online video viewing is prompting steep rises in spending on video formats by UK advertisers—not least because video ads are often more engaging than static display ads. eMarketer estimates that UK advertisers will invest £258 million ($410 million) in digital video ads in 2013, and nearly £400 million ($635 million) in 2014.

 

The Future of Advertising, According To Google

If you want to know where Google‘s going next in advertising–which is a large chunk of where a lot of online advertising overall is going–you need to askSusan Wojcicki, the search giant’s senior vice president of advertising.

Wojcicki drives Google’s accelerating moves well beyond its search ad roots to display, video, and mobile ads. In the past year or so, Google has pushed hardto expand display revenues with a series of acquisitions in ad technology. At the same time, Google faces substantial challenges from Facebook and others pioneering new kinds of ads in the era of social and mobile.

At the ad:tech conference in San Francisco,Wojcicki talked about her “five ideas for the future of advertising.” Not surprisingly, those ideas are somewhat self-serving for Google, which just happens to have answers for most of the challenges she raises. But they also provide clues to where Google will try to push the ad industry as more media goes digital.

In the brief Q&A after her keynote, she was joined by Neal Mohan, Google’s VP of display advertising, who is well worth hearing in his own right. Here are the highlights of what they had to say:

Advertising is the lifeblood of the Internet, she says. But it’s undergoing tremendous change. We need to move as fast as the users. So I spend a lot of time at Google thinking about the future of advertising and how we’re going to reinvent it. The first thing we do is think about users and where they’re going and how are they changing their behaviors.

Imagine this woman in 2020, only seven years away. She’s going to wake up and read her news on a screen, listen to her music, watch TV on demand, use a mobile assistant when she’s on the go, etc. Her life is going to be all digital. So a lot of the ad dollars need to move online.

Wojcicki see five core ideas shaping the future of digital advertising:

1) Choice: Ad views will be voluntary.

We want to move to a model where the user is choosing to view an ad, she says. We’re paid on a cost-per-click basis where the user chooses to click on the ad. It’s up to the ad system and the publisher to show the right ad at the right time.

TrueView ads on YouTube are the same way. About 70% of ads on YouTube are now TrueView. We’ve seen a reduction of 40% in dropoff of ad viewing. One ad on YouTube got 33 million views, an ad by Pepsi featuring race car driver Jeff Gordon, pretending he’s going undercover to buy a car. It got all those views even though it was four minutes long. (Check it out above.)

Another ad format is engagement ads, which show in standard ad formats, but when users hover their mouse over it, catalogs, videos, and other features come up.

2) Control: Users will participate in the ecosystem if we provide enough value and control.

In order to serve things that are relevant to me, you (ad folks) need to know something about me, she says. It’s really important that the ads are relevant and useful. We know this works.

We’ve seen a 30 times increase in programmatic buying of display ads since 2010. But one thing has been missing. That is having users have the opportunity to say this is what I’m interested in. We have an ad preference page where we list the ad preferences of each user. When we offer this opportunity, most people take it. But we need to do this at scale. How can advertisers connect to users at scale?

3) Charm: Ads will be more interactive and beautiful–at scale.

Scale is the important word here. One format we’ve been working on is engagement ads, which give you an opportunity to be more creative. Samsung livestreamed their 90-minute event of the Galaxy S4 launch via a lot of channels, including ads. Click on that ad, and you got a livestream over the existing page. It was one of the most popular concurrent, livestreamed events we’ve seen, right up their with William and Kate’s wedding.

4) Connected: Ads will help people live their lives on the go.

Users have multiple devices, their lives are fragmented across many devices. And the devices are blurring into each other. That’s why we announced Enhanced Campaigns, she says, calling it the biggest change in Google’s AdWords structure in years. The main thrust of the changes, she says: You should be able to target not devices but people. We should be able to get ads that are relevant to where we are and what we’re doing right now.

5) Calibration: All ads will be measured. Clicks will be only one type of measurement.

We need the right type of measurement for branding too, Wojcicki says. So if you’re a brand advertiser, you’re thinking about reach and impact. For reach, she says, we’ve been working on Active GRP and Active View metrics and building that into all our products.

Impact is harder. Recently we announced a brand lift survey product where we can run surveys to users who have seen the ad. We also made the biggest change to Google Analytics in a long time. We redesigned it so we can have an understanding of data coming from different screens, different systems like customer relationship management, etc.

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