Video Essentials

Publishers Predict Huge Growth in Online Video, Says AOL Report

Video will be the primary driver of revenue this year. That optimistic assessment comes from an AOL survey of over 300 premium publishers in the U.S. The online world is changing, and AOL wanted to know how publishers are adapting to the new reality of mobile devices and constant streaming video.

AOLVideoPublisherWhat will propel video as the lead revenue driver? Here’s what the publishers said:

  • 56% Better quality creative
  • 53% Better targeting and personalization of video ads
  • 48% Better load times and/or user experience
  • 45% Integrated video and interactive ad units
  • 39% Shift from other ad types

The online video world is in transition, and to document those changes AOL offered these stats:

  • 70% of millennials watch video on mobile first
  • 48% of users watch videos on smartphone apps; only 18% use mobile web browsers for video
  • In the U.S., 50% more people watched mobile video in 2015 than in 2014 (that compares to 42% in Canada, 40% in the U.K., and 35% globally)
  • Smartphone viewers watch an equal amount of short- and long-form videos; tablet owners prefer long-form content.
  • In one month, 191.5 million Americans watched nearly 50.5 billion online videos (according to ComScore’s Video Metrix from September 2015)

The report also examines growth in mobile publishing, looking at both the opportunities and challenges publishers face.

Top mobile opportunities for publishers:

  • 43% Better audience metrics
  • 43% Interactive, engaging ad units
  • 42% Mobile-first video (creative and formatting)

Top mobile challenges for publishers:

  • 49% ad blockers
  • 44% quality of consumer experience
  • 42% quality of content and/or creative

“Video is poised to be the number one revenue opportunity for publishers this year, and well into the future, especially as consumption continues to climb across demographics,” says Matt Gillis, senior vice president for publisher platforms at AOL Platforms. “According to our data, however, to fully take advantage of video, publishers will need to marry the format with quality creative and data for targeted personalization. These areas are especially important as differentiators today.”

For more, including data on off-site distribution, analytics, and monetization, see the full report “2016 Publisher Outlook: Monetizing in the Age of Mobile and Video.” There’s nothing to download; AOL posted the full results online.


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