Comments
Even as the advertising landscape continues to be dominated by television, the online video industry is looking to more than double its share of revenues. The encouraging trend of local and global players holding strong entertainment and sports intellectual property is set to support investments in online video platforms, said advertisers.
“With mobile data getting cheaper and video consumption shooting up, brands have been quick to latch onto storytelling through digital videos,” said Saurabh Mathur, Head of Strategy and Planning, VML India.
According to Media Partners Asia, a research and consulting firm, YouTube and Facebook combined accounted for 75 per cent of online video advertising in the Asia-Pacific ex-China at the end of this year.
In subscription based online video, the combined market share of Amazon and Netflix is expected to reach 35 per cent in 2018, said the research agency.
Heady numbers
Media Partners Asia’s Executive Director, Vivek Couto, said: “The growth of subscription and ad-supported video services from Amazon, Facebook, Netflix and Google is set to propel these companies to a combined 63 per cent share of Asia-Pacific online video revenues (ex-China) by the end of 2018.”
The sports arena is already bringing in heady numbers, given that it is a $300-billion-plus business. Sports broadcaster ESPN notes that its digital video consumption increased 79 per cent in 2017. Around 85 million sports fans tend to connect with ESPN every day, with 28 million tuning in to ESPN via desktops, mobiles, and OTT.
Hotstar’s good run continues on the back of cricket consumption. For the just concluded IPL, the total audience reach across screens was 769 million, including a TV reach of 567 million, and a Hotstar platform reach of 202 million.
Entertainment properties as well as sports events on video platforms are raking it in. However, there are some challenges that advertisers need to contend with, warns VML’s Mathur.
“This January, Mark Zuckerberg announced a big change in the Facebook algorithm. In an effort to improve user experience, Facebook decided to pull back content by brands. An analysis by video creation platform Wochit showed that views on Facebook declined by 15 per cent. This change in the algorithm is sure to make advertisers think,” said Mathur.
At a recent event in Mumbai, Guneet Singh, Head-Marketing Solutions, Google India and SEA, said the company does a lot of work on video, “and the reason is 80 per cent of consumers are on mobile”.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.