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Mobile Video

Mobile to Power Online Video Consumption – Zenith

Mobile devices already account for the majority of online video consumption at 61%, but mobile is set to grow its share further in coming years. In fact, it will power the next phase of online video viewing according to Publicis-owned media agency Zenith. In the third -- and most recent -- edition of the agency's Online Video Forecasts, it predicts that time spent viewing all online video will increase 20% in 2017.

The study contains historical data and forecasts of online video consumption and advertising. It analyzes 63 key markets around the world, and includes all video services distributed via the Internet.

It's worth noting that this study does not include pay-TV services delivered via a private network, such as broadcast, cable, satellite or telco. These estimates are for Internet video consumption only.

The study found that consumers worldwide will spend 47.4 minutes a day viewing online video this year, largely driven by a 35% increase in mobile video consumption. Zenith predicts that fixed-device video consumption will reach its peak in 2017, and start to decline in coming years -- by 1% in 2018 and 2% in 2019. The agency acknowledges that viewing on smart TVs is growing, but it's not compensating for the declines in desktop and laptop viewing as consumers shift to mobile devices.

Mobile video viewing is expected to grow 25% in 2018 and 29% in 2019, as mobile device penetration grows, screen/display quality improves further and mobile networks evolve to offer faster connectivity. By 2019, Zenith claims mobile devices will account for nearly three quarters of all online video viewing.

Overall online video consumption is also growing rapidly, particularly on social platforms which have added new tools to encourage creation and sharing of videos, including the live streaming of sporting and other events. According to Zenith's estimates, Facebook is already the second-largest supplier of video in many markets (after YouTube).

Zenith also estimates that spending on advertising is set to grow, as online video gains more eyeballs. The agency forecasts global online video advertising expenditure will grow 23% in 2017 to $27.2 billion, up from $22.2 billion in 2016. It will reach $38.7 billion in 2019.

The agency also expects mobile advertising will gain a greater share of advertising revenue, pointing out that, even though mobile gets more video viewing time, advertising spend on fixed video will be $15.2 billion this year, compared with mobile video ad spend at $12 billion. But in 2018, mobile will overtake fixed, and generate $18 billion in advertising revenue as advertisers follow eyeballs to mobile.

While Zenith doesn't explicitly say so, it seems likely the big winners in terms of advertising dollars will be the social networks that embrace video, such as Facebook and Snapchat. The type of video they are offering seems to fit in well with mobile consumption, and consumers are already spending a lot of time engaged with these networks.

At the same time, there may be a surprise lurking in the form of smart TVs and connected set-top boxes beyond 2019. Even as consumers continue to cut the cord, the actual TV set continues to be an important part of most households. And newer TV sets tend to have Internet connectivity built in. So there's going to be a steady stream of new smart TVs entering consumer homes, and rapidly growing penetration of OTT services such as Netflix and Amazon. That could shift video consumption back to the fixed TV, and compete with mobile devices for user time -- at least for some forms of video content, for some segments of the population.

Still, even though the market space remains very much in flux, the study is clear that online video consumption is growing, and mobile video is going to be one of the most important areas for digital advertising.

— Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation

KBode 7/20/2017 | 2:01:30 PM
Re: Paging Louis Sullivan "I suspect the improvement you saw on the smartphone had relatively little to do with 4K/UHD and much more to do with HDR."

Absolutely, I think HDR matters much more on mobile than 4K will, given the small screen and viewing distance. 
Phil_Britt 7/20/2017 | 10:11:21 AM
Re: Paging Louis Sullivan Had not thought about casting. That might provide the best of both worlds, allowing one to watch videos (like news broadcasts), where quality of video and size of screen don't matter, then switch to a larger screen TV for sports, movies or other content for which a larger screen greatly enhances the experience.
Gabriel Brown 7/20/2017 | 10:03:29 AM
Re: Paging Louis Sullivan Thanks. Maybe it was the HDR that made the video look amazing.

Another way that casting is useful is when someone sends you link, or you come across something on the Internet, it is a good way to get the video your big screen.

Example: this video is better on a bigger screen, with good sound, so...

https://www.youtube.com/watch?v=74fhD_DNGQY

1) click the link on mobile (where you discovered it) 

2) cast it to the TV

3) sit back and enjoy

Brand-name services (Netflix, Youtube, etc.) stream the correct format video to your HD TV. Your phone doesn't literally stream the video, afaik, but it can control it (pause, etc.)

Casting can be a bit hit or miss. A service like Vimeo might have the video you want but doesn't work with your casting set-up. Amazon has its own system, Google has another system, Apple probably has one, and so on. That side of it is all a bit of a bore.
242ak 7/20/2017 | 9:02:03 AM
Re: Paging Louis Sullivan The real impact of 4K is largely discernible only on larger screens (55-60 inches plus), so it's not a great driver on the smartphone. The UHD Alliance, a body that certifies UHD devices, uses the Ultra HD PREMIUM certification for TVs, but has a different classification altogether for mobile devices - MOBILE HDR PREMIUM - with parameters for dynamic range, color space and bit depth, because these are more important on smaller screens than resolution. I suspect the improvement you saw on the smartphone had relatively little to do with 4K/UHD and much more to do with HDR. 

The casting scenario is very interesting, though I have to admit I need to look more closely at the nuts and bolts required. The phone does offer navigation benefits over most TV guides, though they are getting better. It does depend though on how the casting works -- if it's actually streamed off the phone, then you are getting a video feed formatted for a phone screen being stretched on to a large screen TV. That's not going to be great quality. The other option is that the connected TV is simply told by the phone what content to pull, and the appropriate profile is pulled -- in which case it probably looks pretty decent. 
Gabriel Brown 7/20/2017 | 5:38:40 AM
Re: Paging Louis Sullivan Oh, and another thing -- how about casting? 

Where you navigate the content on your smartphone because the app is better than the TV controls (e.g. to find the right content), but "cast" the video to the TV to actually watch it?

I guess this is a hybrid TV-Mobile experience.

It feels like a slow burn, but I do it now and again, and find it quite useful
Gabriel Brown 7/20/2017 | 5:29:41 AM
Re: Paging Louis Sullivan One theory I've heard is that smartphones will "power" consumption of 4K video, because

1) People get new smartphones more often than TVs, so 4K screens will penetrate the audience base faster

2) You hold  the phone closer to your eyes, and so can actually appreciate the higher resolution.

Does that make sense Adi?

4K video on high-end smartphones does look fantastic, for what that's worth. Personally, I don't watch that much video on mobile
242ak 7/20/2017 | 4:48:16 AM
Re: Paging Louis Sullivan It will be interesting to see how millennial consumption behaviors change as they age, and how much they change. Regardless of the era in which you grew up, weakening eyesight and a desire to to put your feet up at the end of the day, happens to us all eventually. Will they then come back to watching TV, or will they be so used to smartphones, they won't be able to switch back? 

And as Dennis points out, mobile networks and smartphones now allow us to view video at times when it simply wasn't available before. So that's essentially extra time in a day for video consumption, not cannibalizing video consumption on other devices. It may be that mobile video is pulling time from newspapers, magazines...or conversations. Or staring blankly into space, which appears to be a dying art. 
Phil_Britt 7/19/2017 | 11:56:23 AM
Re: Paging Louis Sullivan Mendyk is right. I bought a 40-inch TV a few years ago, mainly so I could have a larger, better screen for sports. Similarly, when using laptop at home office, I have it plugged into much larger screen. When one gets a little up in years, small screens for viewing just don't cut it.
mendyk 7/19/2017 | 11:27:46 AM
Paging Louis Sullivan Adi -- My guess is that this is a case of form following function. Now that mobile video is available, it will be used by people who are somewhere other than their home. And that use will continue to grow until saturation point is reached. Maybe some "traditional TV" time will leak over to mobile devices, but it's hard to see that as a complete transition. So we end up with a more fragmented delivery structure, but not a completely new one.
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