iab ireland video on demand december 2014 in association with:

IAB IrelandVideo On Demand

December 2014

In association with:

Agenda

2

REACH

Who watches VOD, how and

where?

RESONANCE

Why does VOD resonate with

viewers?

REACTION

How do VOD viewers react to

advertising?

Study Methodology

3

iab Ireland wants to understand and provide marketers with a wide range of insights into the consumption and attitudes

towards Video On Demand

About the studyNielsen conducted an online survey in September 2014 that was completed by 1,195 aged 16+ years who have watched Video On Demand in the last 6 months.

The study also investigated VOD viewing behaviour of the following core target audiences: A16-24, A16-34, A25-44, Housekeepers (HSK) and Housekeepers with Kids (HSK+K)

Nielsen | Prepared For: IAB Ireland - Video On Demand

4

Definitions

By VOD we mean streamed and downloaded content

VOD includes both professionally produced and user-generated content, whatever the length of the video.

By online we mean activity on any device e.g. tablet, smartphone desktop.

Key Insights

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1. VOD viewers engage on a daily

basis

2. VOD complements TV viewing

3. Key drivers of VOD are the ability to personalise content and watch it when and where I want

4. Advertising in VOD leads to further brand engagement

REACHWho watches VOD, how and where?

VOD viewers engage on a daily basis

7


Q1: Have you watched any of the following types of Video on Demand (VOD) content online in the last 6 months?Q2. How often do you watch each of the following type of Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months (n= 1,195-215)

1 in 4 (28%) VOD viewers

watch content daily

Over

1 in 2 2 in 5 1 in 3 1 in 4 1 in 4A16-24 A16-34 A25-44 HSK HSK+K

Nearly 2 in 3 VOD viewers claim to watch for 1+ hours a day…

8

Nielsen | Prepared For: IAB Ireland - Video On DemandQ26: Please think about your TV viewing (excluding viewing Video on Demand content if you use your TV set to do so) and then your Video on Demand viewing (on any device) across a typical day. On average how many hours a day do you spend watching each? A: VOD Index v Avg VOD Viewer Base: Viewed VOD content in last 6 months (n= 1,195-215)Nielsen | Prepared For: IAB Ireland - Video On Demand

VOD viewers

62%

watch VOD 1+ hours

a day

79% A16-24

75% A16-34

65% A25-44

62% HSK

61% HSK+K

Long form professionally produced and short form user generated content are the most popular amongst VOD viewers

9

Q1: Have you watched any of the following types of Video on Demand (VOD) content online in the last 6 months?Base: Viewed VOD content in last 6 months All (n= 1,195). Nielsen | Prepared For: IAB Ireland - Video On Demand

0%25%50%75%

100%60% 71% 71%

43%

Type of content watched by VOD viewers

e.g. Music Videos, TV clips

e.g. Full length TV shows, films

e.g. funny videos, clips

e.g. personal video blogs,

gaming footage

The majority watch both professionally produced and user generated content of varying lengths

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Q1: Have you watched any of the following types of Video on Demand (VOD) content online in the last 6 months?Base: Viewed VOD content in last 6 months All (n= 1,195). Note: Any differences of +-1% are due to the round-up of decimalsNielsen | Prepared For: IAB Ireland - Video On Demand

Type of content watched by VOD viewers

Professional User-Generated84% 79%

21%[Professional

only]

62%[Both]

16%[User-generatedonly] < 10 mins > 10 mins

83% 80%

20%[<10 mins

only]

63%[Both]

17%[> 10 minsonly]

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1 in 2 (47%) of A16-24 VOD viewers watch daily(index: 168)

Engagement with VOD is strongest amongst A16-24

79% watch for over 1 hour a day(index: 127)Professionally produced content >10 mins (78%) (index: 110) and UGC <10mins (76%) (index: 147) is most popular

Index v A16+ VOD Viewers in the last 6 monthsBase: Viewed VOD content in last 6 months All (n= 1,195); 16-24 (n=215)

VOD viewers are not adverse to paying for video content

12

Q3. By which method do you access Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months All (n= 1,168)

Services used to access VOD


Paid Services(Subscription, Pay per View)

51%

Free Services(Free Platforms, Peer to Peer)

90%

Free platforms Subscription Peer-to-Peer (P2P) / Torrent

Pay Per View0%

20%

40%

60%

80%

100%

85%

43%

18% 14%

2 in 5 (40%) of VOD viewers use both services to access content

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50% 10%40%

Free Services(Free Platforms, Peer to Peer)

90%

Paid Services(Subscription, Pay per View)

51%

[Free Services only]

[Free + Paid Services]

[Paid Services Only]

Q3. By which method do you access Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months All (n= 1,168). Note: Any differences of +-1% are due to the round-up of decimals

Services used to access VOD

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Free services are the most popular method (90%) of accessing content across all demographics

A16-34 (24%) are most likely to use Peer-to-Peer services (index: 133)

1 in 5 (20%) of A25-44 VOD viewers watch via Pay-Per-View compared to 1 in 10 (9%) of A16-24

Index v A16+ VOD Viewers in the last 6 monthsBase: Viewed VOD content in last 6 months (n= 1,195-215)

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Q4. On which device/s have you watched each of the following types of Video on Demand (VOD) content?Q5. On which device/s do you prefer MOST to watch Video on Demand (VOD) content?Q4. Base: Viewed VOD content in last 6 month. Q5. Base: Those that use device to view VOD Nielsen | Prepared For: IAB Ireland - Video On Demand

Smartphones are the second most used (48%) device to watch VOD and are used most frequently (daily: 38%). However, only 13% say it’s their preferred device

Laptops are used by most (70%) and are the most preferred device (45%) for watching VOD

Tablets are the third most used (35%) device to watch VOD but only 1 in10 (12%) say it’s their preferred device to view

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Laptops are used most by A16-24 (81%) (index: 116) to view VOD content and for 55% (index: 121) laptops are their preferred device

Housekeepers with children are most likely to use tablets to view content (44%) (index: 126)

and for 16% (index: 133) it’s their device of choice

Base: Viewed VOD content in last 6 months All (n= 1,195-215)Nielsen | Prepared For: IAB Ireland - Video On Demand

Set Top Box TVs are the second most popular device for longer-form professional video content

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Professional: < 10 mins Professional: > 10 mins User-Generated: < 10 mins

User-Generated: > 10 mins

0%

20%

40%

60%

80%

69%

65%

68%

70%

44%

28%

49%

40%

31%

29% 33%

32%

29%

24%

27%

29%

22%

31%

11%

12%

13%

15%

8% 10%

Laptop Smartphone Tablet Desktop Set Top Box TV Smart TV Games Console

60%

71%

71%

43%


Q4. On which device/s have you watched each of the following types of Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months All (n= 513-849).

VOD viewers are more likely to watch at home…

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Q7: Where do you watch Video on Demand (VOD) content on each of these devices?Base: Viewed VOD content in last 6 months All (n= 1,195). Nielsen | Prepared For: IAB Ireland - Video On Demand

Location of watching VOD

98% 49%

In Home Out of Home

At

work

Com

mu

tin

g

On

vac

ati

on

At

arest

aura

nt,

c

afé,

b

ar

At

sch

ool/ c

olle

ge/

un

i-ver

sity At

the g

ym

Oth

er0%10%20%30%40% 30% 26% 25%

19% 15% 10% 7% Smartphones and Tablets are most likely to be used to watch VOD out of home

Social media engagement is part of the VOD viewing experience

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Q17: At any given point in time, which of the following activities do you tend to do while watching VOD content? View/Post on social media specifically about the Video On Demand content I am viewing Base: All (n= 1,195-215)

1 in 4

Adults 16+ (23%) view/post on social media specifically about the Video On Demand

content they are viewing


A16-24

28%

A16-34

26%

A25-44

24%

HSK

23%

HSK+K

25%

I am distracted by content on my regular TV set

I only view the segments/clips of content that I am most interested in

The quality of the content was not good enough

I am interrupted by advertising

I ran out of time (e.g. end of a commute)

Lost connection to the internet prevented me from viewing the content in full

Downloading/buffering prevented me from viewing the content in full

I am interrupted by someone around me (e.g. family, friend)

0% 20% 40% 60%

13%

16%

26%

27%

33%

29%

29%

51%

15%

16%

23%

26%

27%

31%

36%

51%

Rest of Ireland

Dublin

Poor internet connectivity is a key barrier to stronger VOD consumption

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Nielsen | Prepared For: IAB Ireland - Video On DemandQ15 Now we would like you to think about the full length TV programmes/series that you watch when viewing Video on Demand (VOD) content. If on occasion you do not watch the full VOD content in one viewing, which of the following reasons explains why you only watch part of the content?Base: Viewed VOD content in last 6 months Watch professional videos over 10 minutes long (n= 845).

Barriers to watching content in full

4 out of 5 have cut short viewing video content in full (81%)

Why not viewed in full…


REACHComplementing TV

22

Mid

nig

ht.

..

7a

m-9

am

9a

m-n

oo

n

No

on

-3p

m

3p

m-6

pm

6p

m-9

pm

9p

m -

mi..

.0%

20%

40%

60%

80%

100%

Mid

nig

ht.

..

7a

m-9

am

9a

m-n

oo

n

No

on

-3p

m

3p

m-6

pm

6p

m-9

pm

9p

m -

mi..

.0%

20%

40%

60%

80%

100%

VOD viewing rises sharply during traditional prime-time TV hours (6pm-9pm)

Weekdays% of VOD viewers

Weekends% of VOD viewers

Q10. When during the week (Monday-Friday) do you watch the following types of Video on Demand (VOD) content?Q12. When during the weekend (Saturday-Sunday) do you watch the following types of Video on Demand (VOD) content?Base: All (n= 1,195). ) Nielsen | Prepared For: IAB Ireland - Video On Demand

Time of Day: VOD Viewing

Video On Demand can help reach light/ medium TV viewers

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Q26: Please think about your TV viewing (excluding viewing Video on Demand content if you use your TV set to do so) and then your Video on Demand viewing (on any device) across a typical day. On average how many hours a day do you spend watching each? | Base: All (n= 1,195) / 16-34 (n=508)

Video On Demand ViewersAverage Daily TV Viewing %

Heavy TV Viewers (3+ hours per day)

Med TV Viewers (1-2 hours per day)

Light TV Viewers (Less than 1 hour per day)


16-34 VOD viewers are more likely to be light/medium TV viewers (68%)

27%

33%

40% 60% are primarily light/medium

TV viewers

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VOD delivers on hard to reach audiences

Q10. When during the week (Monday-Friday) do you watch the following types of Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months All (n= 1,195-215). Index v All Adult VOD reach of M-F 6-9pm viewing TAM Data: Nielsen TV Audience Measurement Data Index v All Adult TV reach of M-F 6-9pm viewingNielsen | Prepared For: IAB Ireland - Video On Demand

A16-24 A16-34 A25-44 HSK HSK+K85

90

95

100

105

110

115

106

89

99

111 112112

106

100

97

88

TV Viewers VOD Viewers

Peak Viewing: M-F 6pm-9pmIndex v All Adult Reach

Under 35s are more likely to watch VOD (M-F 6-9pm) than all adult VOD viewers and less likely to watch TV at this time compared to all adult TV viewers

Nearly a third of VOD viewers claim to watch more VOD than TV, rising to nearly a half amongst 16-24s

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Q26: Please think about your TV viewing (excluding viewing Video on Demand content if you use your TV set to do so) and then your Video on Demand viewing (on any device) across a typical day. On average how many hours a day do you spend watching each? | Base: All (n= 1,195-215)Nielsen | Prepared For: IAB Ireland - Video On Demand

30%

23%

47%

Video On Demand ViewersShare of Average

Daily TV vs. Daily VOD Viewing %

30% watch more VOD than TV

Watch MoreVOD Than TV

Watch Equally VOD & TV

Watch More TV Than VOD

45%

A16-24

27%

HSK+K

Watch more VOD than TV

RESONANCEWhy does VOD resonate with viewers?

Content, convenience and access are key drivers to consuming VOD content

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Q8. Why do you watch Video on Demand (VOD) content?Base: Viewed VOD content in last 6 months All (n= 1,195)

Drivers of watching VOD content

33%View

multiple episodes

CONTENT48%

Catch-up on missed content

32%For most

recent/new content

28%Shared or

recommended by friends

30%Only available

online

15%Prefer VOD to

TV content

CONVENIENCE

54%Can watch in my own time

35%Easier to watch full

series 34%View

anywhere I want

50%It’s free

ACCESS

17%Others are using TV

5%I don’t have

a TV


CONTENT CONVENIENCE ACCESS

Chosen content on my schedule

28

Q9. Why do you watch Video on Demand (VOD) content on each of the following devices?Base: Viewed VOD content in last 6 months All (n= 1,195)

30%Only available

online

15%Prefer VOD to

TV content


series

50%It’s free


5%I don’t have

a TV


28%Shared or



33%View

multiple episodes

48%Catch-up on

missed content

32%For most

recent/new content

54%Can watch in my own time

34%View

anywhere I want

Content specifically chosen to

watch

When and where viewers want to

watch it

CONTENT CONVENIENCE ACCESS

Mobile is a key enabler for those who watch content that’s been shared or recommended

29

Q9. Why do you watch Video on Demand (VOD) content on each of the following devices?Base: Viewed VOD content in last 6 months All (n= 1,195)

33%View

multiple episodes

48%Catch-up on

missed content

32%For most

recent/new content30%

Only available online

15%Prefer VOD to

TV content54%

Can watch in my own time


series

50%It’s free


5%I don’t have

a TV


34%View

anywhere I want

28%Shared or


Smartphones are the primary driver behind those who watch VOD anywhere they want to

(57%).It’s also important for just under half (47%) who

watch content that’s been shared or recommended


30


Q14 You mentioned that you watch full length TV programmes/series when viewing Video on Demand (VOD). Which of the following types of programmes do you watch via 'live streaming' and which do you watch via ‘On-Demand'?Base: Viewed VOD content in last 6 months Watch professional videos over 10 minutes long (n= 845).

Movies, drama and box sets are watched most ‘on demand’, sports and news are engaged with in the moment

On Demand | Top 3 Live Streaming| Top 3

Movies63%

Drama50%

Movies34%

Sport39%

Box Sets48%

News & Current Affairs33%

REACTIONHow do VOD viewers react to advertising?

Advertising is not a barrier to viewing VOD

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Q15: Now we would like you to think about the full length TV programmes/series that you watch when viewing Video on Demand (VOD) content. If on occasion you do not watch the full VOD content in one viewing, which of the following reasons explains why you only watch part of the content? A: I am interrupted by advertising | Base: Watch full length TV programmes/series on VOD (n=845-167)Nielsen | Prepared For: IAB Ireland - Video On Demand

4 in 5 VOD viewers who watch long form

programming (79%) did not feel that interruption by advertising

was a barrier to watching content in full

A16-24

73%

A16-34

77%

A25-44

81%

HSK

79%

HSK+K

82%

Only a small minority claim to completely avoid VOD content with ads

33

Q22: Thinking specifically about advertising in and around Video on Demand (VOD) content, please indicate how strongly you agree or disagree with the following statements? A; Top 2 Box AgreementBase: Q22: Base All (n=1,095) Those who recall seeing advertising in & around VOD content (n=893)Nielsen | Prepared For: IAB Ireland - Video On Demand

14%

16%

12%

13%

Professional >10 mins

Professional <10 mins

User Generated >10 minsUser Generated

<10 mins

VOD viewers know that advertising allows them access

34

Q22: Thinking specifically about advertising in and around Video on Demand (VOD) content, please indicate how strongly you agree or disagree with the following statements? A; Top 2 Box AgreementBase: Q22: Base All (n=1,095) Those who recall seeing advertising in & around VOD content (n=893-166)Nielsen | Prepared For: IAB Ireland - Video On Demand

3 in 4(74%) of VOD viewers know that advertising allows them access to free contentA16-24

70%

A16-34

74%

A25-44

73%

HSK

73%

HSK+K

72%

1 in 2 are happy to watch advertising in return for free content

35

Q21: How happy are you to watch adverts in and around the following types of Video on Demand (VOD) content in order to be able to watch content for free? A; Very/Somewhat/HappyBase: Q22: Base All (n=1,095) Those who recall seeing advertising in & around VOD content (n=893-166)Nielsen | Prepared For: IAB Ireland - Video On Demand

of VOD viewers aware of advertising are

very/somewhat happy to watch it in order to consume content for free (Any VOD content)

49%

A16-24

59%

A16-34

57%

A25-44

53%

HSK

48%

HSK+K

56%

Acceptance is strongest for professionally produced and long form content

36

Q21: How happy are you to watch adverts in and around the following types of Video on Demand (VOD) content in order to be able to watch content for free? A; Very/Somewhat/HappyBase: Those who recall seeing advertising in & around VOD content (n=716-758 to 167-152)

0%

15%

30%

45%

60% 49%41% 42%

50%Advertising Acceptance


Acceptance is particularly acute amongst VOD viewers under 35 and HSK+K when viewing long form and professionally produced content

37

Q25: As a result of seeing advertising whilst watching each of the following VOD content, have you done any of the following?Base: Those who recall seeing advertising in & around VOD content (n= 893).

Actions ever done following exposure to advertising…

Advertising in & around Video On Demand content leads to further brand engagement

26%visited brand’s website/physical

location

24%searched for the

brand/ product on the internet

10%have bought the

brand

17%Clicked on the ad to find more info about the

brand

19%Amplified

message about brand via word

of mouth


Video On Demand: Key Insights

Key Insights

39

REACH:

VOD viewers engage on a daily basis 28% watch VOD content daily, using a variety of devices.

Engagement with VOD is strongest amongst A16-24 (50% watch daily)

Free advertising-funded platforms are the most popular method of accessing content (90%).

VOD complements TV VOD can help reach light/medium TV viewers and deliver harder

to reach audiences especially A16-24s and A16-34.

RESONANCE:

VOD: Specifically chosen content when and where I want Content, convenience and access are key drivers to consuming

VOD

REACTION:

Advertising in VOD leads to further brand engagement Acceptance of advertising in & around VOD content is strong

(74%) 1 in 2 happy to watch advertising in order to view free content 26% visited a brand’s website/physical location after exposure

to advertising in VOD content

IAB IrelandVideo On Demand

December 2014

In association with:

iab ireland video on demand december 2014 in association with:

Documents