U.S. Digital Video Benchmark INCREASEboletines.prisadigital.com/video_benchmark_report-2014.pdf · Online video is a part of our lives more today than it has ever been before. With

U.S. Digital Video Benchmark Adobe Digital Index Q2 2014

125%INCREASE

YOY

Table of contents As publishers and advertisers look to engage viewers they need to be aware that online video (unauthenticated) and online TV (authenticated TV Everywhere). !is change is being led by an increasing number of device types coming online and as broader content choices become available to viewers. With viewers watching more online content than ever before, understanding the trends of this movement can help lead to improved content and targeted advertisements to keep pace with this evolving and demanding consumer.

Table of contents

Online video consumption 05 Online video start growth 06 Device share of video starts

07 Ad start per video start

08 Video completion rates by device

Online TV 09 Share of authenticated video by access type

10 Authenticated video growth by share of access type

11 Monthly unique visitor growth

12 Video viewing frequency growth by access type

13 Video viewing frequency by genre 14 Movie Network channel viewing frequency growth

Appendix 15 Methodology

16 Glossary

17 Tables

ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q2 2014

Key insights New record for total online video consumption •  38.2 Billion: Total global online video starts in Q2 ’14, a new record and a 43% year-over-year increase.

(Sample size: 1,300+ Adobe Marketing Cloud customers). •  Smartphones Overtake Tablets: Online video viewing on smartphones is now higher than on tablets;

Online video viewing on smartphones is continuing to gain popularity with 59% year-over-year share growth. (Q2 ‘13 vs. Q2 ‘14).

•  25.8% Ad Growth: Viewers watched 2.08 ads per video start in Q2 2014; up 25.8% year-over-year (Q2 ‘13 thru Q2 ‘14).

Online TV growth accelerates in 2014 •  388% year-over-year growth for online TV video consumption. •  85% Unique Visitor Growth in 2014: 2014 has seen a surge in monthly unique viewership growing

85% over the last 6 months; up 146% year-over-year.

ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q2 2014 3

Key insights People are frequenting online TV more now, than ever before •  125%: Frequency of authenticated video started on movie channel networks realized a 125% increase

year-over-year. •  80.6%: Broadcast and cable networks realized a viewing frequency increase of 80.6% year-over-year. •  !e number of online TV videos watched per visitor each month has increased year-over-year by 54.8% across all

device types.

AndroidTM apps surpass desktop browsers for share of video authentications •  28% Share Growth: Android apps realized a 28% year-over-year gain in share of authenticated video starts now

accounting for 20% of video authentications.

Gaming console and OTT devices are becoming the new desktop in online TV space •  194% Share Growth: In the realm of online TV, Gaming Consoles and OTT devices are becoming a relevant

medium for content consumption.


ONLINE VIDEO CONSUMPTION

Online video start growth Online video starts continue to rise quarter a#er quarter.

!e "ndings: •  Q2 2014 set a new record for total online video starts of

38.2 billion.

•  Total online video starts grew a staggering 47.3% year-over-year (Q2 ‘13 thru Q2 ‘14); a 9.4% quarterly acceleration in growth.

•  Quarter-over-quarter growth in online video starts was 7.2%; up 46.9% from last quarter.

!e opportunity:

Online video is a part of our lives more today than it has ever been before. With consumers using video as a primary entertainment medium, producers, developers, and marketers need creative solutions for integrating their content into more online videos.


QUARTERLY ONLINE VIDEO STARTS(IN MILLIONS)

Q2 2013 Q2Q3 Q4 Q1 2014

10,000

20,000

30,000

38.2B

Adobe customersproduced

38.2 billionvideo startsin Q2 2014.

ONLINE VIDEO CONSUMPTION

Device share of video starts Market share of online video consumption continues to be carved out by mobile devices like smart phones and tablets, and has now etched higher with over 26% of online video views on a mobile device, a market share increase of 57% year-over-year.

!e "ndings:

•  Smartphone online video viewing has surpassed tablet video viewing.

•  Video viewing on smartphones is continuing to gain popularity with 59% year-over-year share growth.

•  Tablet share growth is slowing down up only 29% year-over-year; vs. 42% in the previous quarter.

•  Gaming console and OTT devices realized the highest market share growth, growing 127% year-over-year.

!e opportunity:

Mobile devices are becoming much more relevant in online video consumption. Developers need to be prepared to offer an array of options that cater to multiple platforms and an increasing buffet of screen sizes.

6 ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q2 2014

8.5%8.55%%8

13.0%13.6%

10.1%1100.11%

DEVICE SHARE OF ONLINE VIDEO STARTS(Q2 2013 vs. Q2 2014)

TABLET SMARTPHONE

29%GROWTH

59%GROWTH

ONLINE VIDEO CONSUMPTION Ad starts per video start When coupling it with the growth of video viewing, online video advertisement viewing is accelerating at a remarkable rate.

!e "ndings: •  Viewers watched 2.08 ads per video start in Q2 2014; up 25.8%

year-over-year (Q2 ‘13 thru Q2 ‘14).

•  In Q2 2014, the ratio of ad starts per video start was 66.0% higher in sports content vs. non sports content.

!e opportunity:

With ad views on the rise, content publishers need to develop way to insure proper tracking and cataloguing of ads. !is will aid in developing a proper strategy around ad placement, as well improve the way ad engagement is measured.


Q2 2013 Q2Q3 Q4 Q1 2014

Viewers watched

2.08 adsper video start

in Q2 2014.

1

ONLINE VIDEO AD STARTS PER VIDEO START

2.08

ONLINE VIDEO AD STARTS PER VIDEO START(BY CONTENT TYPE Q2 2014)

NON SPORTS SPORTS

66%HIGHER

2.25

1.36

ONLINE VIDEO CONSUMPTION Video completion rates by device Online video viewing behavior differs between device types. Online video completion rates on mobile devices (smart phones and tablets) lag behind completion rates on desktops, gaming consoles, and OTT devices.

!e "ndings: •  A video that reaches 25% completion on a desktop was 3x more

likely to reach 75% completion compared to a mobile device.

•  Only 16.6% of videos viewed on a mobile device reach 75% completion.

!e opportunity:

Knowing when you are loosing the a%ention of your audience can help developers, producers, and marketers in executing a strategy which optimizes engagement across different platforms.


100%

100%75%50%25%VIDEOSTART

SMARTPHONE GAMING CONSOLE AND OTT TABLET DESKTOP

ONLINE VIDEO COMPLETION RATE BY DEVICE TYPE(Q2 2014)

50%

Android Apps as well as Gaming console and OTT access types gained a large portion of the total online TV authentication market share year-over-year.

!e "ndings: •  Browser access type market share shrank 41% year-over-year.

•  Gaming console and OTT access types had a 194% year-over-year gain in share of authenticated video starts.

•  Android apps realized a 28% year-over-year gain in share of authenticated video starts.

!e opportunity:

People are turning away from browser based access types to stream online TV and utilizing a larger variety of mediums to consume online TV content.


ONLINE TV Share of authenticated video by access type

SHARE OF ONLINE TVVIDEO AUTHENTICATIONS BY

ACCESS TYPE(Q2 2013 vs. Q2 2014)

Q22014

Q22013

51%

48%33%

19%

20%

10%

16%

3%

BROWSER iOS APP ANDROID APP GAMING CONSOLE AND OTT

166%%6%1

33333

33%%

8%48%48%3%%

4

ONLINE TV Authenticated video growth by share of access type Online TV realized signi&cant growth in authenticated video starts over the last year, with Android apps seeing a huge acceleration of growth in the most recent quarter.

!e "ndings: •  !e total amount of online TV authenticated videos grew 388%

year-over-year.

•  !e months where peak viewing occurred, were months surrounded by a major sporting event; Olympics, March Madness, World Cup.

!e opportunity:

Online TV continues to become a more and more relevant part in broadcast consumption. Advertisers need to shi# their strategy and create more targeted ad campaigns that &t with this new medium of broadcast content.


AUG2013

OCT2013

DEC2013

FEB2014

APR2014

JUN2014

JUN2013

ONLINE TV AUTHENTICATED VIDEO GROWTHBY SHARE OF ACCESS TYPE

BROWSER iOS APP ANDROID APP GAMING CONSOLE AND OTT

388%GROWTH

ONLINE TV Monthly unique visitor growth Online TV continues to rapidly a%ract new users.

!e "ndings: •  Monthly unique visitors are 'ocking to online TV for content

consumption growing 146% year-over-year.

•  2014 has seen a surge in monthly unique viewership growing 85% over the last 6 months.

Insight

Months that were not “sports heavy” (Nov and Dec 2013, Apr and May 2014)

realized a slow down in video authentications; however viewers still stuck around to watch other segments of content.


ONLINE TV MONTHLY UNIQUE VISITOR GROWTH

85%LAST SIXMONTHSGROWTH

JUN2013

AUG2013

OCT2013

DEC2013

FEB2014

APR2014

JUNE2014

INDEX100%

ONLINE TV Video viewing frequency growth by access type Online TV consumers are viewing content at an ever increasing frequency.

!e "ndings: •  !e average authenticated video per visitor has increased

54.8% year-over-year.

•  Android app access type viewers are frequenting online TV content 59.5% more now than they were a year ago.

!e opportunity:

Producers need to be aware of the shi# in the viewing habits of consumers. Viewer behavior is changing from casual viewing to a binge consumption approach, streaming multiple episodes in one session.


6.56.556

4.144.11

7.2

8.4

5.3

ONLINE TV VIEWING FREQUENCY – AUTHENTICATED VIDEO/VISITOR PER MONTH(Q2 2013 vs. Q2 2014)

BROWSER iOS APP

8.6

2.722.77

355.34.7

59.5%MORE

FREQUENT

ANDROID APP GAMING CONSOLEAND OTT

ONLINE TV Video viewing frequency by genre Not all content is created equal. Differing genres of content exhibit differing levels of viewing frequency among other things.

!e "ndings: •  Broadcast and cable networks realized a viewing frequency

increase of 80.6% year-over-year.

•  Viewing frequency on sports networks increased 31.3% year-over-year.


3.23..2

ONLINE TV VIEWING FREQUENCYAUTHENTICATED VIDEO/UNIQUE VISITOR

(Q2 2013 vs. Q2 2014)

BROADCAST ANDCABLE NETWORKS

SPORTS NETWORKS

4.2

3.133.11

5.6

80.6%FREQUENCY

GROWTH

31.3%FREQUENCY

GROWTH

ONLINE TV Movie network channel viewing frequency growth Premium movie content is seeing a rise in the number of authenticated videos being watched.

!e "ndings: •  Movie network channel viewing frequency realized a 125%

increase year-over-year.

Insight

As viewers look for more diverse content to stream, they appear to be turning to and engaging more with movie channels. Producers need to seize the opportunity and provide more content to keep viewers engaged.


JUN2013

JAN2014

JU UG SEPT OC OV DE EB MA PR MA UN

2

4

ONLINE TV VIEWING FREQUENCY – AUTHENTICATED VIDEOS/UNIQUE VISITOR(BY MOVIE NETWORK CHANNELS)

125%INCREASE

YOY

L A AT N C F R JY

ADOBE DIGITAL INDEX Methodology !is report is based on consumer video viewing in 2013 and 2014. It is comprised of the aggregated and anonymous data from media and entertainment sites gathered from Adobe Analytics and Adobe Primetime.

Sample information includes:

•  165 billion total online video starts

•  1.53 billion online TV authentications

•  235 different sties and apps in the US and Canada acting as access points for online TV

Visit our website: adobe.ly/digitalindex

Read our blog: adobe.ly/digitalindex

Follow us: @adobeindex @adobeprimetime

Ask a question or make a suggestion: [email protected]


©2014 Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Android is a trademark of Google, Inc. Apple TV is a trademark of Apple, Inc., registered in the U.S. and other countries. All other trademarks are the property of their respective owners.

ADOBE DIGITAL INDEX Glossary •  Online Video Start: any browser based unauthenticated video start. •  Authenticated Video: includes both temporary and actual video authentications. •  Monthly Unique Visitors: total number of unique visitors for the month. •  Access type –  Browser includes Chrome, IE, Firefox, and Safari on both PC and mobile devices –  iOS app is an app on any Apple mobile device –  Android app is an online TV app located on any Android mobile device –  Gaming Console and OTT includes data from apps on Xbox, PS4, Apple TV®, Roku, Chromecast®, Amazon

Prime®, and other similar devices

•  Online TV Video Viewing Frequency: authenticated video starts / monthly unique visitor.



ADOBE DIGITAL INDEX Tables

Online Video Completion Rate by Device Type Device type Video Start 25% Complete 50% Complete 75% Complete 100% Complete Desktop 100% 63% 53% 51% 20% Gaming Console and OTT 100% 61% 48% 34% 23% Smartphone 100% 50% 42% 16% 10% Tablet 100% 52% 45% 17% 12%

Online Video Authenticated Video Growth 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014 5/1/2014 6/1/2014

100% 108% 128% 160% 148% 156% 150% 232% 260% 339% 235% 292% 488%

Share of Online TV Authentications Access type Q2 2013 Q2 2014 iOS app 48% 51% Browser 33% 19% Android app 16% 20% Gaming console and OTT 4% 10% Online TV Viewing Frequency

Access Type Q2 2013 Q2 2014 Android app 5.3 8.4 iOS app 6.5 8.6 Browser 2.7 4.7 Gaming Console and OTT 4.1 7.1

Quarterly Online Video Starts Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Quarterly video starts (millions) 17,727.2 24,881.2 25,932.2 31,051.6 33,968.2 35,629 38,187.5

Share of Online Video Starts Device Q2 2013 Q2 2014 Tablet 10.1% 13% Smartphone 8.5% 13.6%

Online Ad Starts per Video Starts Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Ad starts per video start 1.65 1.88 1.76 2.07 2.08

Online Ad Starts per Video Starts Content type Q2 2014 Sports 2.25 Non sports 1.36

Online TV Monthly Unique Visitor Growth 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014 5/1/2014 6/1/2014

100% 113% 139% 147% 136% 144% 133% 172% 176% 209% 208% 218% 246%

Online TV Viewing Frequency Network type Q2 2013 Q2 2014 Broadcast and Cable Networks 3.1 5.6 Sports Networks 3.2 4.2

Online TV Monthly Viewing Frequency by Movie Channel Networks 4/1/2013 5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014 5/1/2014 6/1/2014

2.1 1.9 2 2.5 3.1 2.2 2.1 2.6 2.8 2.5 2.9 3.4 3.2 4.9 4.5

Documents

U.S. Digital Video Benchmark INCREASEboletines.prisadigital.com/video_benchmark_report-2014.pdf · Online video is a part of our lives more today than it has ever been before. With