Frost & Sullivan Report Finds Record Growth in Online Video Advertising Market

Frost & Sullivan (News - Alert) today released its yearly "Australian Online Video Market 2012" report, which states that the steady global adoption of mobile devices and overall demand from younger consumers has driven demand for online video among Australians, while leading to a record year of growth in the online video advertising market.

"The online video advertising market grew by 58 percent in the 12 months to June 2012 to reach $86 million, faster than any previous year," Phil Harpur, senior research manager, Australia & New Zealand ICT Practice, Frost & Sullivan. "A growing number of 'light' TV watchers are now watching online video across a range of devices while 40 percent of tablet owners are accessing their tablet as they watch traditional TV, always or most of the time."


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According to the report, a whopping 94 percent of 15 to 17 year olds now watch TV shows and/or movies at least once a month on a desktop or laptop. Of course, smartphones and tablets play a key role in the delivery of online video, as two-thirds of smartphone users watch short video clips on average at least once per month. Mobile use has also led to much higher levels of multitasking across devices and platforms, largely due to social media.

TV programs and full-length movies, meanwhile, are viewed by almost half of all tablet users at least once per month, while short clips reign supreme with 39 percent of tablet owners viewing these on an almost daily basis.

Written in association with TVN, a media and technology company dedicated to Internet TV, this report draws on Frost & Sullivan's inaugural Australian Online Video Usage Trends Survey, conducted in May 2012, which examined the consumption behavior of 1,000 Australians between the ages of 15 and 65.

Frost & Sullivan predicts that market growth will continue over the next five years, increasing from $86 million in 2012 to $442 million in 2017.

The research firm also recently released a study entitled "Analysis of Venture Capital Investment Trends in European Application Software, Systems Software, Technology Hardware, and Equipment Industries," which states that venture capital investors, convergence, M2M communication and online solutions are creating interesting opportunities in the global economy.

In October, Frost & Sullivan gave Verizon (News - Alert) the North American Market Leadership Award for hosted network-based interactive voice response systems for the sixth consecutive year.