SYDNEY – The Australian online video market grew by a record breaking 58 percent in the last 12 months, industry analyst Frost & Sullivan says.
The rapid proliferation of mobile devices and insatiable demand by younger consumers has driven demand for online video among Australians and lead to a record year of growth in the online video advertising market, according to a Frost & Sullivan report into the market.
The researcher forecasts strong growth will continue over the next five years with the market growing at a CAGR of 39 percent, increasing from $86 million in 2012 to $442 million in 2017.
It is expected to outperform all other major online general advertising segments such as banner ads, advertorials, sponsorships and e-newsletters.F&S says 94 percent of 15- to 17-year-olds now watch TV shows and/or movies at least once a month on a desktop or laptop.
Smartphones and tablets are also playing a key role with two-thirds of smartphone users watching short video clips on average at least once a month.
Said Phil Harpur, F&S’s senior A/NZ research manager:
“The online video advertising market grew by 58 percent in the 12 months to June 2012 to reach $86 million, faster than any previous year.
A growing number of “light” TV watchers are now said to be watching online video across a range of devices while 40 percent of tablet owners are accessing their tablet while they watch traditional TV, always or most of the time.
For tablet users, TV programs and full-length movies have become mainstream activities, with both now viewed by nearly half of all users at least once a month.
Tablets are also changing entrenched TV user behaviour patterns. Some 51 percent of tablet owners indicated that using a tablet has to some degree reduced the amount of time they spend watching TV shows or movies.