The Mobile Video BoomMarcelo BallvéEditorial Director, Business Insider IntelligenceOctober 28, 2012

Mobile video audiences have exploded – 77% increase in two years

Source: Nielson Cross-Platform Report

Mobile’s share of total video views nearly doubled in only 3 months

Source: Ooyala Global Video Index Report, Q2 2012

Combined

Tablets

Smartphones

Share of TV/Video Viewing Time, Globally

So, what’s behind this surge?

First, mobile device sales have exploded in recent years

And so has mobile content consumption

But there’s a lot more to it.

Our viewing habits are driving the boom.

In the U.S., TV has lost viewers …

Audience size

Source: Nielson Cross-Platform Report

And live ratings have declined

… Amid a tectonic shift to on-demand and on-the-go

video

Source: Nielson Cross-Platform Report

Pay TV subscriptions also are trending down

Source: Bernstein Research, BI Intelligence estimates

Online video is real and growing fast

And mobile (along with Xbox, etc.) is taking view

share from PCs

Source: FreeWheel

Share of Video Views, Q1 vs. Q2 2012

Major League Baseball’s video breakdown reveals this trend

towards mobile

Connected devices: game consoles and media players

How MLB’s “At Bat” video subscribers watch the games:

Source: MLB

There’s another factor …

More widespread usage of 4G LTE

4G LTE is 10x faster than 3G

Boosted bandwidth allows for quicker uploads and better streaming quality

Those with 4G LTE are 33% more likely to watch mobile video than those without it. (source: comScore)

4G already has 14M customers in the U.S.

The ‘Big Three’ LTE Markets

Source: Wireless Intelligence, Q2 2012

And more carriers are beginning to offer 4G, and

in more marketsNumber of U.S. markets with LTE coverage, by carrier

Source: Wireless Intelligence Q2 2012, carriers

Let’s dig into mobile video habits.

Source: Ooyala

Myth: Smartphone owners don’t watch longer videos.

They do!

Longer videos are being played across all mobile devices

(advertisers like that)Average Minutes Per Play

Source: Ooyala, 2012

Here are smartphones only…

Source: Ooyala, 2012

Average Minutes Per Play

Tablet users “lean back” and watch videos more often than

smartphone users

Source: comScore, April 2012, age 13+

Mobile video audiences tend to be younger than TV viewers

Source: Nielsen

And they are also diverse

Source: Nielsen

Like TV, mobile video tends to be watched at night

Apple devices have a huge lead over Google’s Android in mobile

video views

We are here

Source: Freewheel, Q1 2012

What about mobile video ads?

Mobile ad platforms are seeing explosive growth in mobile video ads

eMarketer predicts the U.S. mobile video ad market will reach $1.1 billion by 2015

Greystripe, a leading mobile ad network, saw a 300% growth in mobile video ad bookings from Q3 to Q4 in 2011

YuMe, a leading video ad network and platform, saw 75% growth in mobile video ad impressions from Q1 to Q2 in 2012

Video doubled as a share of executions on Opera’s ad network in just six months

Source: Opera

And there’s plenty of room to grow…

Source: FreeWheel

App users still only seeing one or two mobile video ads per day

So, the boom will continue… right?

It depends.

Mobile video already accounts for 59% of all mobile data usage

Source: Cisco 2012

Data Usage Share

Source: AT&T

One hour of HD mobile video uses 14x the data of music streaming!

A continued mobile video surge will drive mobile data usage

Source: Cisco 2012

So, carriers might have a lot to say about how quickly mobile

video grows Tiered data plans and

high data prices set by carriers could be a huge drag on mobile video

Question of whether cost efficiencies are found and if those savings will be passed on to consumers

At the same time, there are still a lot of smartphones to be

sold globally We are here

And many more tablets as well

We are here

So the future is definitely mobile

Also, other ‘data-free’ solutions may

spring up.

Dyle live TV app doesn’t use data

Dyle requires a built-in or attachable dongle/antenna to pick up TV airwaves

Backed by major broadcasters: Fox, NBC, etc.

Dyle poll finds audiences receptive to more ‘data free’ mobile TV

Source: Dyle.TV

The sky is the limit for mobile video… Oct 14 #spacejump is proof

• Garnered an 8 million device audience

• Set a YouTube live stream record

• Users turned to their mobile devices to watch on a weekend

Thank you!

Henry BlodgetFounder, CEO & Editor-in-Chief, Business Insider

Alex Cocotas, Analyst

Marcelo Ballvé, Editorial Director

BI Intelligence is a new subscription service from Business Insider that provides in-depth insight, data, and analysis of the mobile industry.

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Peter Lee, Intern

Josh Luger, Director of Subscription Products