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Online and Streaming Video - US - November 2012

“The seven years of YouTube’s history have made evident that there is a startlingly large demand for videos showcasing cats engaging with Roombas, amateur performers taking a spill off or on stage, and babies dancing to Beyoncé. While interest in homegrown entertainment may continue indefinitely, both ad sellers and ad buyers have an incentive to move consumers away from amateur content to professionally created content that brands can put their name behind.”

– Billy Hulkower, Senior Technology Analyst

Some questions answered in this report include:

  • Is viewership growing?
  • Have ad sales matured?
  • How can monetization be improved?
  • Is the move to the living room beneficial for marketers?

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Ad sales
            • Consumer data
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                      • The market
                        • Deceleration in ad sales growth
                          • Figure 1: Online video ad sales, at current prices, 2007-12
                        • Tiny share of ad sales indicates room for growth
                          • Figure 2: U.S. advertising expenditures, by media format, 2011
                        • Future of banner likely video
                          • YouTube’s reach nearly complete
                            • Figure 3: Websites used to watch online video, all vs. 18-24 year olds, August 2012
                          • Market factors
                            • Viewers accept barter of ads for content
                              • Figure 4: Number of online video ads viewed in the U.S., Q3 2010-Q2 2012
                            • Content driven by traditional fare
                              • Figure 5: Types of online video content viewed in past month, August 2012
                            • Changing profile of hardware ownership to impact usage
                              • Television usage for online video ramping up
                                • The consumer
                                  • Young lead in every category of content
                                    • Figure 6: Time spent watching online video in past week, by age, August 2012
                                  • Younger adults, heavy viewers, key to viral sensations
                                    • Figure 7: Sharing and posting online video, by video usage groups*, August 2012
                                  • Buying spots preferable to creating content
                                    • Younger viewers, heavy viewers, more engaged with ads
                                      • Figure 8: Recall and result of ads played during online video content, by age, August 2012
                                      • Figure 9: Recall and result of ads played during online video content, by video usage groups*, August 2012
                                    • Asians, English-language Hispanics merit special treatment
                                      • Figure 10: Use of websites with streaming video in past 30 days, by race and Hispanic origin, August 2011-March 2012
                                    • Available content overwhelming
                                      • Figure 11: Attitudes to finding online video content, by age, August 2012
                                    • What we think
                                    • Issues in the Market

                                        • Is viewership growing?
                                          • Have ad sales matured?
                                            • How can monetization be improved?
                                              • Is the move to the living room beneficial for marketers?
                                              • Trend Application

                                                  • Make it Mine
                                                    • Figure 12: Attitudes to finding online video content, by age, August 2012
                                                  • Carnivore, Herbivore… Locavore
                                                    • 2015 trends
                                                      • Old Gold
                                                      • Insights and Opportunities

                                                          • Ads as content
                                                            • Adding ad inventory via internal promotions
                                                              • Ad-supported feature films
                                                                • Watch ads, receive free ride on data
                                                                  • Cross-category recommendations
                                                                    • Growing the next generation of auteurs and critics
                                                                      • Originating content created by Asian-Americans
                                                                      • Ad Sales

                                                                        • Key points
                                                                          • Growth slowing
                                                                            • Figure 13: Sales of video ads online, at current prices, 2007-12
                                                                            • Figure 14: Sales of video ads online, at inflation-adjusted prices, 2007-12
                                                                          • Volume of ads doubles in 2012
                                                                            • Figure 15: Number of online video ads viewed in the U.S., Q3 2010 - Q2 2012
                                                                        • Competitive Context

                                                                          • Key points
                                                                            • Room for growth in ad spend
                                                                              • Figure 16: U.S. advertising expenditures, by media format, 2010-11
                                                                            • Immediacy of calls for action competitive advantage
                                                                              • Figure 17: Impact of internet on lifestyle, by age, August 2011-March 2012
                                                                          • Market Drivers

                                                                              • Key points
                                                                                • Hardware ownership
                                                                                  • Figure 18: Ownership of phones, PCs, tablets, and IPTV boxes, by age, August 2011-March 2012
                                                                                  • Figure 19: Devices used to access the internet, by age, August 2011-March 2012
                                                                                  • Figure 20: Ownership of phones, PCs, tablets, and IPTV boxes, by household income, August 2011-March 2012
                                                                                  • Figure 21: Devices used to access the internet, by household income, August 2011-March 2012
                                                                                • Rapid gains for Wi-Fi access
                                                                                  • Figure 22: Internet and Wi-Fi access, July 2008-March 2012
                                                                                  • Figure 23: Internet access at home and at work, by age, August 2011-March 2012
                                                                                  • Figure 24: Internet access at home and at work, by household income, August 2011-March 2012
                                                                              • Innovation and Innovators

                                                                                • Shopping via interactive video
                                                                                  • Amazon crowd-sources content
                                                                                    • Viewdini crosses walled gardens
                                                                                      • Social video via Showyou
                                                                                        • Gleep: original comedy, professional values
                                                                                          • Anyclip raising ratio of ads to content
                                                                                          • Online and Streaming Video Usage

                                                                                            • Key points
                                                                                              • Traditional video makes its way to the top of online video
                                                                                                • Figure 25: Types of online video content viewed in past month, August 2012
                                                                                                • Figure 26: Types of online video content viewed in past month, by age, August 2012
                                                                                                • Figure 27: Types of online video viewed in past month, by gender, August 2012
                                                                                              • Men, 18-34s more likely to be heavy viewers
                                                                                                • Figure 28: Time spent watching online video in past week, by gender, August 2012
                                                                                                • Figure 29: Time spent watching online video in past week, by age, August 2012
                                                                                              • Video usage via cell phone limited
                                                                                                • Figure 30: Video usage on cell phones, by age, August 2011-March 2012
                                                                                                • Figure 31: Video usage on cell phones, by household income, August 2011-March 2012
                                                                                              • YouTube dominant, Hulu attractive
                                                                                                • Figure 32: Use of YouTube and Hulu in past 30 days, by age, August 2011-March 2012
                                                                                                • Figure 33: Websites used to watch online video, by age, August 2012
                                                                                            • Finding Content

                                                                                              • Key points
                                                                                                • Catch-22 in building audiences favors ad buys
                                                                                                  • Figure 34: How viewers find internet video, crossed by use of specific channels, social networks, or popular video lists to find videos, August 2012
                                                                                                  • Figure 35: How viewers find internet video, by age, August 2012
                                                                                                • Free content appeals to lower-income viewers
                                                                                                  • Figure 36: How viewers find internet video, by household income, August 2012
                                                                                              • Viral Video—Sharing and Posting

                                                                                                • Key points
                                                                                                  • Young adults, women, and heavy viewers more likely to share links
                                                                                                    • Figure 37: Sharing and posting online video, by age, August 2012
                                                                                                    • Figure 38: Sharing and posting online video, by gender, August 2012
                                                                                                  • Heavy and mainstream users as viral marketers
                                                                                                    • Figure 39: Sharing and posting online video, by video usage groups, August 2012
                                                                                                • Response to Video Ads

                                                                                                  • Key points
                                                                                                    • Video and banner ads carry similar results
                                                                                                      • Figure 40: Types of internet ads resulting in a purchase, by age, August 2011-March 2012
                                                                                                    • Video ads gaining mainstream acceptance
                                                                                                      • Figure 41: Attitudes to ads played during online video content, August 2012
                                                                                                    • Recall and awareness higher among younger adults
                                                                                                      • Figure 42: Attitudes to ads played during online video content, by age, August 2012
                                                                                                    • Heavy viewers more ad-friendly
                                                                                                        • Figure 43: Attitudes to ads played during online video content, by video usage groups, August 2012
                                                                                                    • The Transition to the Television Screen

                                                                                                      • Key points
                                                                                                        • Television second screen for online content, ahead of phones
                                                                                                          • Figure 44: Types of screens used to watch online video, by age, August 2012
                                                                                                          • Figure 45: Types of screens most commonly used to watch online video, by age, August 2012
                                                                                                        • Streaming to the television
                                                                                                          • More than half already able to do so
                                                                                                            • Figure 46: Ownership of and intent to buy hardware that streams content to televisions, August 2012
                                                                                                            • Figure 47: Intent to purchase hardware that streams content to televisions, by age, August 2012
                                                                                                        • Impact of Race and Hispanic Origin

                                                                                                          • Key points
                                                                                                            • Spotlight on Asian viewers, Asian creators
                                                                                                              • Figure 48: Ownership of phones, PCs, tablets, and IPTV boxes, by race and Hispanic origin, August 2011-March 2012
                                                                                                              • Figure 49: Use of YouTube and Hulu in past 30 days, by race and Hispanic origin, August 2011-March 2012
                                                                                                            • Whites lag in ads leading to purchase
                                                                                                              • Figure 50: Types of internet ads resulting in a purchase, by race and Hispanic origin, August 2011-March 2012
                                                                                                            • Wide differences in internet access among Hispanics by language spoken
                                                                                                              • Figure 51: Internet access at home and at work, by language spoken, August 2011-March 2012
                                                                                                              • Figure 52: Use of YouTube and Hulu in past 30 days, by language spoken, August 2011-March 2012
                                                                                                          • Additional Useful Consumer Tables

                                                                                                            • Usage
                                                                                                              • Figure 53: Types of online video content viewed in past month, by race/Hispanic origin, August 2012
                                                                                                              • Figure 54: Types of online video content viewed in past month, by video usage groups, August 2012
                                                                                                              • Figure 55: Use of cell phones for streaming video, by language spoken at home, August 2011-March 2012
                                                                                                            • Attitudes to ads played during online content
                                                                                                              • Figure 56: Attitudes to ads played during online video content, by presence of children in household, August 2012
                                                                                                            • Finding online video content
                                                                                                              • Figure 57: Attitudes to finding online video content, by presence of children in household, August 2012
                                                                                                              • Figure 58: How viewers find internet video, by gender, August 2012
                                                                                                            • Websites used to watch online video
                                                                                                              • Figure 59: Websites used to watch online video, by gender, August 2012
                                                                                                              • Figure 60: Types of screens used to watch online video, by video usage groups, August 2012
                                                                                                            • Hardware ownership, intent to purchase and usage
                                                                                                              • Figure 61: Intent to purchase hardware that streams content to televisions, by video usage groups, August 2012
                                                                                                              • Figure 62: Types of screens used to watch online video, by presence of children in household, August 2012
                                                                                                              • Figure 63: Devices used to access the internet, by household size, August 2011-March 2012
                                                                                                          • Appendix—Trade Associations

                                                                                                            Companies Covered

                                                                                                            • Amazon North America
                                                                                                            • Digital Media Association (DiMA)
                                                                                                            • Interactive Advertising Bureau (US)
                                                                                                            • Netflix, Inc.
                                                                                                            • U.S. Bureau of Labor Statistics
                                                                                                            • Verizon Communications Inc.
                                                                                                            • YouTube, Inc.

                                                                                                            Online and Streaming Video - US - November 2012

                                                                                                            US $3,995.00 (Excl.Tax)