With its new array of online options for viewing media — not to mention the increasing amount of original content created for online audiences — the internet has become a disruptive influence on the traditional television business, plain and simple. Even the staid Nielsen ratings standards have finallyannounced plans to include online streaming audiences in their metrics starting this fall. Now after years of talk about “cord-cutting” and the collapse of TV as we know it, a new report is suggesting that the rapid growth of the online audiences will fundamentally change not only the way viewers approach video content, but the way that advertisers do.
The report, titled “Global Video Index: 2012 Year in Review,” was released by Ooyala, a California-based company that specializes in online video and online video analytics. It found that the amount of video watched on tablet devices and mobile phones in 2012 increased by 100 percent over the previous year, and also that advertisers are taking notice of the shift to online video viewership, with U.S. ad spending on streaming video content climbing 46 percent to reach $2.93 billion last year alone.
“People are now starting to realize that a significant percentage of the television audience — and therefore, the advertiser’s reach — is happening online,” Bismarck Lepe, co-founder and President of Products, Ooyala told Wired. “In the U.S., depending on the month, we’re already seeing between 10 and 15 percent of all video viewership, including television and DVDs, is happening on [internet]-connected devices. That’s a huge jump from roughly about 1 percent when we started the company back in 2007.”