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YouTube viewing time on TVs has more than doubled in a year, according to a statement from Matt Brittin, president of EMEA business and operations at Google at the company's Brandcast event on Monday in the UK.
YouTube also said that while 73% of viewing happens on mobile devices in the UK, TV represents the fastest growing platform for video consumption, which has been largely propelled by millennials. Nearly half (48%) of viewers aged 16-34 have watched YouTube on their TV, according to the company.
Speakers at the event also outlined how traditional brands are leveraging YouTube to highlight their linear offerings. For instance, The Late Late Show host James Cordon and representatives from CBS have uploaded clips of the star’s “Carpool Karaoke” segment to YouTube in order to widen its audience beyond those that can stay awake for the 12:30am EST airing of the CBS program.
YouTube’s event highlights a bigger trend in the media industry, which is that digital and traditional TV can have a mutually beneficial relationship.
Cross-platform initiatives seem to be paying off. UK-based Research firm IPA found that utilizing both online video and traditional TV campaigns increased marketing effectiveness by 54%. When online video is used on its own, the increase falls to 25%.
This is leading to increased cross-platform ad budgets. A third of US advertiser's 2016 budget will be spent on cross-platform video buys, which is a 21% increase from 2014, according to the IAB. The same study found that nearly two-third's (62%) of advertisers plan on increasing their cross-platform spend this year vs. 2015.
Increased adoption of connected devices are keeping viewers in front of the TV. Twenty-seven percent of households in the US have at least one multimedia device – such as Apple TV, Roku, or Google Chromecast – connected to their television, which is an increase of 59% in just two years, according to Nielsen. As adoption becomes more widespread, brands can start to incorporate interactive marketing campaigns through these platforms — something that the Washington Post is already doing.
Jessica Smith, research analyst for BI Intelligence, has compiled a detailed report on streaming media devices that sizes up this market by device category and takes a more granular dive into each.
The report includes new shipments forecasts, identifies major players, and assesses the advantages and weaknesses of each device category. It also examines how usage and ownership may vary among device categories and the implications of this upswing on various ancillary markets, like advertising and app development.
Here are some key takeaways from the report:
Streaming media device adoption is rising fast as over-the-top (OTT) streaming video services — such as Netflix and HBO NOW — make it easier than ever to ditch traditional pay-TV. We expect global shipments of streaming media devices to grow at a 10% compound annual growth rate (CAGR), from 240 million in 2016 to 382 million in 2021.
Over the next few years, we expect the market for streaming media devices to grow and consolidate. In the long term, newer technologies like virtual reality will become a leading connected device segment. However, in the next five years, smart TVs, gaming consoles, and media streamers will remain the top categories by a wide margin.
Smart TVs currently dominate shipments, accounting for three-quarters of device shipments in 2015. As people upgrade their TVs, the global installed base of smart TVs will grow from 584 million in 2016 to 896 million in 2021.
As streaming media device uptake rises, stakeholders throughout the larger media ecosystem will need to adapt to consumers' changing habits. Legacy TV providers will likely need to offer skinny bundles or their own OTT subscriptions to stay relevant, while advertisers will want to capitalize on the opportunities available in targeting streaming viewers using demographic and behavioral data. App developers, platform creators, and game makers will also have a stake in where and how streaming activity develops.
In full, the report:
Identifies the major device categories in the streaming media market.
Sizes up the current reach and shipments forecast for each device category.
Compares and contrasts the benefits and downsides of each device category within the greater streaming media ecosystem.
Examines the major players in each device category.
Assesses the gap between streaming media device installed base and usage.
Explores how this growing market is impacting other industries in its peripherals.
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