Consumer engagement with online video is continuing to grow "significantly", and the format is maturing as viewers become more familiar and more receptive to adverts within online videos, according to a new report from Yahoo.
The report was conducted with more than 4,100 online video viewers, and is a follow-up to an initial study conducted in 2009, when online video was believed to be in its first phase. In the past two years however, the Internet giant has observed a change in online video that signals a maturation of the format, marked by an evolution rather than its initial revolution.
Firstly, online video consumption continues to grow, and specifically that of full-length movies and TV shows: in a given day, 57% of respondents watched an online video, up 33% from 2009. However, short clips still represent the majority of videos watched, at roughly 75%.
There has also been a marked increase (+30pts) in online video viewership between the hours of 6pm and 9pm; viewership during the day's business hours (9am-5pm) declined between 2009 and 2011, with the majority of videos now seen in the evening when viewers are home. The growth of services such as Netflix and Hulu (both of which have more than doubled since 2009) has likely prompted this growth, according to the report.
There has been an overall increase in video streams that are shared, but the percentage of viewers that share videos was found to have decreased in the past two years: only 26% of respondents stated that they shared the video they just watched (prior to being polled), compared to 34% in 2009. Older viewers were found to be less likely to share videos, which has contributed to a smaller proportion of online video sharers.
Viewer receptivity to video advertising was found to increase when it is tied to professionally produced content, as was the likelihood of viewers to remember seeing an advert, retain product information or recall the brand being advertised. Adverts associated with professional content are also more likely to be viewed as relevant by consumers, according to Yahoo.
Consumers were found to show greater engagement with professionally produced videos attached to "mixed media" such as articles, and are also more receptive to adverts in environments that include content. 57% of online video viewers polled stated that the enjoy watching a video next to an article. The report also found that when a video is viewed on a page that includes an article, viewers are more likely to watch the video to get more information, recall seeing the advertising, and view the video as “professional”.