MediaVideoOpportunistic On-Demand Users Spike Overall Video Viewing

Opportunistic On-Demand Users Spike Overall Video Viewing

A new report from Nielsen shows that video on demand, or time-shifted content, is a fast-growing part of the television ecosystem, providing new and exciting opportunities for digital marketers.

According to Nielsen’s Q1 2014 Cross-Platform Report, video on demand (VOD) has come of age over the last two years.

Whether they’re watching last night’s drama, last season’s premiere of a sitcom, or an original series that doesn’t even air on terrestrial television, Americans are digitally smitten with discovering, catching up on, and accessing content on their own terms. And it’s this content availability that has helped power a sharp video viewing curve, as mobile device penetration, coupled with on-demand options, continues to grow, and as viewers spend more time watching.

Currently available in more than 60 percent of U.S. households, VOD is increasingly contributing to the viewing potential. What’s more is that recently telecast VOD (RTVOD) has emerged as a legitimate choice for consumers who might not have a DVR or simply missed recording last night’s episode.

Nielsen’s most recent Cross-Platform Report took a look at the on-demand landscape and found some interesting insights to share. Key findings include:

  • Close to 40 percent of U.S. TV households currently subscribe to at least one subscription-based video-on-demand (SVOD) service and the opportunity to use these platforms has grown among younger segments.
  • While on average VOD contributes 4 to 5 percent in the coveted 18-to-49 demo, individual shows have seen upward of a 15 to 20 percent increase in viewership from VOD. It is also a platform that is appealing to younger demos, as well as Asian-Americans, whose overall contribution through VOD is 8 percent.
  • Overall, the Q1 2014 Cross-Platform Report found that Americans continue to watch more than five hours of traditional television per day — a statistic that has remained close to flat over the same quarter for three years running.
  • However, daily time spent watching time-shifted content has continued to rise, as has viewing using the Internet on a computer and using a smartphone, which now boasts 70 percent penetration in the U.S.

What’s more is that RTVOD — where the ad-skipping functionality is often disabled — could be an opportunity for advertisers and programmers alike. Not only do viewers of RTVOD have higher penetration levels across many devices, but they’re also more likely to have four or more years of college and to make more than $100,000 per year.

nielsen-chart-on-deman

In the full report, which can be downloaded from the Nielsen website, Dounia Turrill, Nielsen’s senior vice president of insight, explains that today’s viewers are making device and platform choices that have a “profound” impact on the meaning of television and video. For example, this May there was a “great transformation” during a traditionally television-centric time of the year. She’s referring, of course, to the Upfronts and the Digital Content NewFronts.

She adds that early conversations around time-shifting and digital became very real. Upfront talks around shifting some deals from Live+3 days to Live+7 days, digital rights, and programmatic buying had those in the media and advertising industry on the edge of their seats. This year, digital publishers came out strong, Turrill says, adding that they are capturing the attention of Millennials in growing numbers and challenging the media landscape.

“The American consumer has never before engaged with more content across media type, media devices, and content type,” Turrill concludes. “Understanding, defining, and measuring this curve matters to our clients. Timeshifting allows us to watch more content, video-on-demand allows us to watch more content, and digital delivery allows us to watch more content.”

Homepage image via Shutterstock.

Related Articles

What makes videos effective on Twitter?

Social What makes videos effective on Twitter?

8m Tereza Litsa
The online video metric all marketers should focus on in 2017

Analytics The online video metric all marketers should focus on in 2017

8m Rebecca Sentance
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts
First Party Data is Integral to Breathing New Life Into TV

Analytics First Party Data is Integral to Breathing New Life Into TV

11m Erin Madorsky
NFL revises its short-sighted social media policy

Media NFL revises its short-sighted social media policy

11m Al Roberts
How to build a successful digital video strategy in 2017

Marketing How to build a successful digital video strategy in 2017

9m Tereza Litsa
How to take advantage of Facebook's focus on longer videos

Social How to take advantage of Facebook's focus on longer videos

9m Tereza Litsa
Why 2017 is set to be the year of the video

Media Why 2017 is set to be the year of the video

10m Andy Morley