- Category: March 2015 - Video Advertising
The increasing use of Internet protocol (IP) enabled devices has fuelled massive video consumption and, in turn, has driven the need for online video analytics (OVA) solutions globally, states the research analyst, Frost & Sullivan, in one of its recent reports.
OVA is defined by Frost & Sullivan as the tracking, analysis, and measurement of video content viewed on Internet Protocol (IP)-connected devices, such as personal computers (PCs), laptops, smartphones, smart TVs, OTT streaming devices, and streaming-enabled gaming consoles.
The new analysis from Frost & Sullivan finds that publishers, advertisers and service providers have come to the realization that OVA solutions are essential to device effective strategies to monetize from targeted video services and estimates the market earned revenues to reach $472.0 million by 2020. Indeed, it already becomes apparent that due to a rapid adoption of over-the-top services (OTT), supported by the proliferation of mobile devices, user-generated online video has grown substantially. As a result, advertisers and publishers have begun to divert their resources to online channels, boosting the prospects of OVA solution providers. Today’s viewers, however, expect a TV-like viewing experience on the device of their choice at a time they prefer, which makes OVA even more challenging.
"The demand for premium TV content on online channels has also increased due to the popularity of live global sporting events," said Frost & Sullivan Digital Media Industry Manager Hiral Jasani. "This has highlighted the need to identify real-time consumption behavior and measure the effectiveness of online video and online video advertising by adopting sophisticated OVA solutions."
Besides, when compared to other mediums, online video is able to drive more traffic and engage more viewers. However, the lack of standardization of measurement metrics offered by OVA platforms, coupled with the diversity of devices and video formats, has led to confusion in the market and prevented these solutions from going mainstream.
Instead of taking the risk of investing in third-party OVA solutions, the market has been using home-grown or bespoke solutions. With no standardization in terms of measuring audience engagement, viewership or quality of online video, the market has become fragmented. As a result, there are only a handful of pure-play OVA solution providers globally, Frost & Sullivan concludes.
"The OVA market will remain fragmented, as publishers, advertisers and service providers each try to control their ends of video delivery and claim control of the OVA functionality," noted Jasani. "As video makes up the bulk of online traffic, several big data and Web analytics solutions providers will also compete with these players, further increasing market fragmentation."
However, to be able to successfully monetize from online video, measurement of online video becomes a business imperative. There is a need to track how viewers discover video content and how they interact and engage with the same. The video content has to be of the right length to ensure viewer attention. It has to meet viewers’ quality requirements, as any delay in video buffering time may lead to the viewer dropping off from the web page. Most importantly, by studying online viewing behavior, content creators can determine what type of audience they should keep in mind.
OVA helps understand these attributes and deliver a seamless viewing experience. It also helps make money from it and creates an effective business model around online video consumption and delivery.
OVA solution providers help analyze and understand all aspects of a video - how it is played, on which device, by whom, and at what time. The metrics are gathered and examined to help end users comprehend viewing behavior, patterns, preferences, and consumption conversion rates.
Hence, in the coming years, publishers will widely adopt the programmatic advertising approach, giving rise to larger ad inventories and driving the need for OVA solutions.
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