Cross-device video analysis

Cross-device video analysis Engaging consumers in a multi-screen world ©2013 Experian Information Solutions, Inc. All rights reserved. Experian and t...
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Cross-device video analysis Engaging consumers in a multi-screen world

©2013 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public.

Cross-device video analysis Table of Contents: •

TV still king?



Cross-device video consumption



Cord-cutters on the rise



Internet-connected TV



Top video sites and smartphone apps



Smartphone video viewing by time of day



Mobile video ad receptivity

With the explosion of smartphones and digital tablets and the steady rise of Internet-connected televisions, gaming consoles, etc. consumers are increasingly watching streaming or downloaded video when and where they want. As of October 2013, 48% of all U.S. adults and 67% of those under the age of 35 watch streaming or downloaded video during a typical week, up from 45% and 64%, respectively, just six months earlier. At the same time, the share of households considered “cord-cutters”—those with high speed Internet, but no cable or satellite TV—is on the rise, especially among video streamers. Some say this portends the end of television, but what we’re really witnessing is the transition of the definition of “television” from referring to a type of content to a device commonly used to consume video. Television is likely to remain the primary device to consume video as a group for a long time to come, whether the source of video comes from a broadcast signal, a cable or satellite feed or streamed through the Internet. But that doesn’t mean the television will retain its primacy as the king of types of video. In fact, when it comes to viewing downloaded or streaming video, smartphones are already the most commonly used device. During a typical week, 24% of all adults and 42% of smartphone owners watch downloaded or streaming video through their phone making it the top device for consuming this type of content. While the advertising model for streaming and downloaded video is drastically different from traditional television, our research shows that consumers who watch streaming or downloaded video are actually more receptive to advertising in general though there is still a way to go before they warm up to video ads on smartphones and tablets.

TV is still the king of video overall… 94% of U.S. adults watch some sort of video content on a TV each week While emerging video devices rely largely on the Internet as the primary source of video content, most televisions still have the ability to deliver content from a wide array of sources, ranging from live and time-shifted programming to DVDs, PayPer-View and increasingly the Internet. And the vast majority of Americans still gather ‘round and “tune in,” to use an antiquated term. In fact, during a typical week, 94% of U.S. adults watch at least some sort of video content on a television and onein-six adults watch 40 hours of TV a week or more. Among the different content sources viewable on a TV, live programming attracts the largest share of viewers with 84% of adults watching at least something live during a given week. A third of adults watch video recorded on their DVR during a typical week. While only nine percent of adults watch streaming or downloaded video on a television, this segment is of critical importance and will be the focus of attention repeatedly in this analysis.

Breakdown of weekly video viewing on a television by source

94% 84%

40% 32% 13% Any video

Live programming

DVD

DVR

PPV

9% Download/ Stream

…but mobile is the first screen

THE CROSS-CHANNEL MARKETING for online video BUYER’S GUIDE

24% of adults watch video on a smartphone each week Nearly a quarter of all adults and 42% of smartphone owners watch video on their phones during a typical week, making it the number one device for consuming streaming or downloaded video content. Despite the availability of numerous Internet-connected devices like Roku and Apple TV, which are designed make online video content consumable through a television, fewer than 1-in-10 adults today report watching streaming or downloaded video on a television during a given week.

Percent of adults who watch video streamed/downloaded to each device during a typical week All adults

42%

42%

Device owners 26%

25%

24%

19% 16% 7%

Work PC

9%

9%

Television

10%

Game console

12%

Tablet

Home PC

Smartphone

Devices dedicated to online

THE CROSS-CHANNEL MARKETING video BUYER’S GUIDE

Few use smartphones primarily for watching video Although a large number of adults watch video on their phone, just four percent of smartphone video viewers say that watching videos is the activity they engage in most on their phone, ranking well behind talking and texting. On the other hand, despite the relatively small number of adults who watch streaming or downloaded video on their television, a third of those who do say that watching streaming or downloaded video is the primary activity that they engage in from their TV. Likewise, half of those who watch streaming or downloaded video via a game console say that they primarily use their game console for that purpose. No surprise, the act of watching streaming or downloaded video on any device increases the likelihood that an individual lives in a cord-cutter household.

Percent of device-specific streaming/downloaded video viewers who say that watching streaming/downloaded video is the activity they engage in most on that device. 49%

32% 22% 18% 4%

9%

Work PC

Television

Game console

Tablet

Home PC

Smartphone

Cord-cutting on the rise Netflix, Hulu users biggest cord-cutters An estimated 6.5% of U.S. households (7.6 million homes) today are considered “cordcutters,” meaning they have high speed Internet but no cable or satellite television service. That’s up from 4.5% of households (5.1 million homes) in 2010, a relative increase of 44%. While the term cord-cutter implies that a household had a cable or satellite TV subscription that was cancelled, young adults starting out on their own for the first time may never pay for TV service. In fact, 12.4% of households inhabited by an adult under the age of 35 (almost twice the national average) are cord-cutters. Throw either a Netflix of Hulu account into the mix and the share of young adult households that don’t pay for TV jumps to 24.3%.

Percent of U.S. households that are cord-cutters 18.1% 2010 2013

6.5%

12.4%

12.7%

7.9%

4.5%

All households

Anyone age 18-34 in household

Household has Netflix or Hulu account

Increased likelihood of household being a cord-cutter by device ownership versus U.S. average +65%

Smartphone and digital tablet ownership— especially iPhones and iPads—also noticeably increases the odds that a household is a cord-cutter. Specifically, households where at least one resident owns a smartphone are 20% more likely to be cord-cutters and households where someone owns a tablet are 36% more likely. Compare those baselines to the fact that iPhone-owning households are 33% more likely to be cord-cutters and households with an iPad are 65% more likely.

+33%

+36%

iPhone

Any tablet

+20%

Any smartphone

iPad

You might be a cord-cutter if… Watching streaming/downloaded video on TV key to cord-cutting While the act of watching streaming or downloaded video on any device is connected `to higher rates of cord-cutting, the act of watching streaming or downloaded video on a television is the most strongly correlated. For instance, while adults who watch video on either a tablet or smartphone are 1.5 times more likely than average to be cord-cutters, those who watch streaming video on a television are 3.2 times more likely to be cable-cutters. Furthermore, those who say that they use their television primarily for watching streaming or downloaded video are 5.7 times more likely to be cord-cutters. This is important because despite the fact that a growing number of Americans are watching video on portable personal devices, that doesn’t seem to be enough to overwhelmingly convince Americans to cut the cord. Rather it’s the ability to stream or download video directly to the television—the modern caveman’s campfire—that seems to be the tipping point. So as devices like Roku, Apple TV and Google Chromecast become more common and as televisions themselves are increasingly connected to the Internet directly, we should expect to see the number of cordcutters grow.

Increased likelihood of being a cord-cutter Say watching streaming video is primary use of device Watch streaming video on device

5.7

2.9

3.2

2.4 1.9

2.4

2.1 1.5

Home PC

Game console

Television

Tablet or smartphone

Internet on the big screen

THE CROSS-CHANNEL MARKETING BUYER’S GUIDE

A third of Americans live in households with Internet-connected TV First there was color TV, then the flat screen. The latest leap in television innovation is bringing the World Wide Web to America’s televisions. As of February 2014, an estimated 34% of American adults live in a home with an Internet-connected television either via a third party device or by direct connection through the set itself. Among those connected through a third party video device (about a quarter of those with Internet-connected TV), 41% use Apple TV and 35% use Roku (data on adoption of Google Chromecast was not available at the time of publication). It’s important for marketers to monitor the rise in Internet connected televisions as well as the horserace between leading third party devices in order to develop video campaigns that take advantage of the larger screen and multiple viewers.

Percent of adults with Internet-connected TV

34% 30%

Third party video device market share*

41%

25% 35%

2012

2013

2014 *One percent of households own both an Apple TV and Roku device

Top desktop video sites A range of content choices for advertisers Despite a relative drop in visit share of 8.9% over the last year, YouTube.com is still by far the video site most frequently visited from a desktop computer with a 58.77% share of visits among a custom aggregate of video-rich sites*. Netflix.com, which increased visit share by a relative 6.3% in the last year, is a distant second with just 6.73% share of visits to the custom aggregate. When it comes to the average visit time among the top video sites there’s a broad range from a high of 22 minutes and 51 seconds for the average Netflix.com visit (about the length of a typical 30-minute program, minus commercials) to a low of two minutes and six seconds spent during a typical visit to Yahoo! TV. Despite the generally shorter duration of videos available on YouTube.com, the average visit time nearly equals that of Netflix.com signifying that YouTube visitors are watching multiple videos back-to-back and presenting advertisers with multiple opportunities to reach and engage viewers.

*Custom aggregation includes the top 100 sites in each of the Hitwise® multimedia, television and broadcast media industries, the vast majority of which prominently feature video content.

Top video sites visited from a desktop ranked by visit share Visit share and average visit time (min:sec) Week ending March 22, 2014 58.77%

1.98%

21:23

10:42

6.73%

1.52%

22:51

videos

1.46%

2.34% 6:00

16:06

TV

2:06

2.18%

0.79%

4:48

10:01

2.16%

0.75%

10:31

SCREEN

2:43

Top smartphone video apps Ditching the browser As is the case on desktops, YouTube, Netflix and CNN secure the top three spots when it comes to most used smartphone video apps. During a typical month, 64% of adults who watch streaming or downloaded video on a smartphone use the YouTube app while 19% use the Netflix app and 5% use the CNN app. Other properties carrying over from the top desktop sites include Fox News and Hulu (though the Hulu smartphone app is only for subscribers to Hulu Plus while the website provides content for non-subscribers as well). The Apple Podcasts app, which allows iPhone owners to watch video podcasts, is accessed monthly by 4% of all smartphone video viewers, enough to secure the number 5 spot overall. However, 10% of iPhone video viewers use the Podcasts app each month which is ranked third among iPhone video viewers after YouTube and Netflix. While the DirecTV app allows users to stream video content directly to their phone, it’s likely that most are using the app more to manage their recordings or account given the average weekly visit time of just five minutes and 33 seconds, the shortest use time of the top 10 video apps.

*Smartphone video apps include apps either dedicated to video or prominently featuring video content.

Top video smartphone apps Percent of smartphone video viewers who use the app monthly and average weekly use time (min:sec) 64%

4%

15:21

5:33

19%

3%

14:14

8:06

5%

2%

12:16

10:42

4%

2%

13:49

5:54

4%

1%

16:50

16:31

Smartphone video use peaks

THE CROSS-CHANNEL MARKETING during primetime BUYER’S GUIDE

More young adults watch mobile video around the clock The share of young and old alike who watch video on their smartphone rises alongside the sun with viewing rates steadily increasing from 5:00 AM until noon. Post lunch, viewing generally drops, but there’s a clear evidence of an afternoon smartphone video “snack” break occurring between 3:00 to 4:00, especially among young adults, when viewing briefly returns to lunch hour rates. Post work, video viewing jumps with the 24 hour smartphone video peak coinciding with the start of primetime TV. During a typical day, 2.8% of smartphone owners ages 18 to 24 and 2.2% of those ages 25 and older watch video on their smartphone between 8:00 and 9:00 PM. As the moon rises, viewing gradually declines, but we don’t see a steep drop-off until after midnight, indicating that smartphone owners watch video on the device right up until they turn in for the night.

Share of adult smartphone owners watching video by time of day 11 PM

12 AM 1 AM

10 PM

2 AM

9 PM

3 AM

8 PM

Age:

4 AM

7 PM

6 PM

5 AM

5 PM

6 AM

18-24 25+

7 AM

4 PM

8 AM

3 PM 9 AM

2 PM 1 PM

10 AM 12 PM

11 AM

Inner ring 1% Middle ring 2% Outer ring 3%

Make yourself useful

Percent of adults who find video ads on each device useful*

Age, screen size linked to usefulness of ads Adults who stream video from a smartphone or digital tablet are generally more receptive to advertising than average. But when it comes to mobile and tablet video ads specifically, we still have a way to go. Overall, only 27% of adults who watch video on a smartphone and 31% of those who view video on a tablet say that they find video ads on these devices useful. It is reasonable that video ads on a tablet would be perceived as more useful than those on a smartphone given the larger screen size and the ability to display a video ad alongside additional content and links without completely monopolizing the screen.

18-34

35-49

50+

39% 36% 28%

17% 14% 9%

Young adults, those who are typically still trying new things and seeking out brands to settle down with, find ads on both devices more useful than older adults who are traditionally more brand loyal and less receptive to advertising in general. Marketers need to understand the heightened trust in video ads on tablets when creating content for each platform. Likewise, they need to understand their audience and the challenges that they face in trying to influence older consumers with mobile and digital video ads.

*Based on adult s who watch video on each device. “Useful” includes: somewhat useful, useful or very useful

Source: The data found in this report is based on the Summer 2013 Simmons® Connect study, a comprehensive survey of 24,219 US adults. Simmons Connect links in-depth consumer lifestyles, attitudes, brand preferences and more to their complete cross-platform media use covering 11 platforms, including smartphones, digital tablets and home computers. The report also sources data from Hitwise, the world’s largest sample of online consumer behavior to help marketers increase the effectiveness of their marketing campaigns.

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© 2013 Experian Information Solutions, Inc. • All rights reserved Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

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