Online Video Usage and Video Advertising Rising

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Online video continues to surge, not just for the number of unique viewers, time spent watching video and the number of streams, but for the percentage of time spent consuming video advertising.

According to Nielsen, there were 143.9 million unique online video viewers in the U.S. in January, up 3.1 percent from the same month last year. There were a total of 14.5 billion during the month, up 31.5 percent from last year, which translated to 101.1 streams per viewer, up 27.5 percent year-over-year.

Time spent viewing online video was 279 minutes in January, up 44.5 percent year-over-year, according to Nielsen.

YouTube was the top online video brand with 112.8 million unique viewers in January. It was followed by Facebook with 32.3 million viewers.

VEVO was a newcomer to the top 10 list, debuting at No. 3 with 32.2 million unique viewers in January. Yahoo was fourth with 25.5 million viewers, followed by MSN/Windows Live/Bing with 17.3 million viewers, Hulu with 11.9 million viewers, The College Humor Network with 10.0 million viewers, AOL Media Network with 9.2 million viewers, Fox Interactive Media with 7.6 million viewers and Netflix with 7.4 million viewers.

MSN/Windows Live/Bing experienced the biggest month-over-month change in viewer with 26.1 percent growth, followed by Netflix with 15.6 percent growth.

YouTube boasted 8.5 billion streams in January, 10 times more than Hulu, which was second with 813 million streams. VEVO followed with 347 million streams, while MSN/Windows Live/Bing had 247 million streams.

Netflix (200 million), Yahoo (187 million), Facebook (159 million), Nickelodeon Family & Parents (137 million), Megavideo (136 million) and MTV Networks Music (134 million) rounded out the top 10 online video brands by total streams in January.

When ranked by time per viewer, Netflix was No. 1 in January with 11:08 (hh:mm) spent per viewer. Tudou.com followed with 6:30, while Hulu engaged its users for 5:35, according to Nielsen.

Video advertising is taking up more and more of viewers’ time spent consuming online video, according to numbers from comScore, which shows that in December, 16.4 percent of total online video consumption was spent viewing video ads, which is about one in every six videos viewed. This is up considerably from the 9.8 percent mark observed in July.

In December, 5.9 billion video ads were served, according to comScore. This is equivalent to 40 ads per viewer and 0.4 minutes per ad. comScore also notes that 88.6 million people watched online video on an average day in December, up 32 percent from the same month in 2009.

Sources:</strong

http://blog.nielsen.com/nielsenwire/online_mobile/january-2011-online-video-usage-up-45/

http://www.comscoredatamine.com/2011/02/average-hours-per-us-online-video-viewer-in-2010/

http://www.marketingcharts.com/direct/online-video-gains-momentum-in-2010-16045/

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