The mobile video phenomenon

4 years from now mobile video consumption will become mainstream Cisco tells us.

The multinational predicts that two-thirds of the world’s mobile data traffic will be video by 2017.

In other words, consuming video content on your smartphone or tablet will become as mundane as watching TV or sending a SMS.

Come to think about it, 2017 is not that far off.  This made me consider my own current mobile usage behaviour:

How often do I watch videos on my phone or tablet these days? Twice a week on average I would say and mostly YouTube videos.

And do I watch more video content on these devices now than I did a year ago? Absolutely – and upgrading from a multimedia phone to a smartphone certainly helped.

By extension, it also made me wonder how close Cisco’s forecast was to becoming a reality for my fellow Australians. Well, according to the latest research, 2017 is a lot closer than one might think:

According to eMarketer, 64% of the 25-34 year-olds in Australia are already watching video on their mobile phones and tablets, followed by 61% of the 35-49 year-olds and 36% of the 18-24 year-olds.

For these age groups, mobile phone is the most popular platform for viewing video content (87%), with tablet a close second (74%).

Additionally, 53% of Aussie smartphone users admit to viewing mobile video several times a week with 18% of those once a day (honourable yet worth noting that there is still room for growth as Americans remain ahead of the pack with 31% of them watching mobile video at least once a day) – Source: Nielsen’s The Mobile Consumer: a global snapshot, Feb.2013.

Combine all of this with a smartphone penetration of 73% in the 15 to 65 age group predicted to reach a whopping 93% in 2018, a tablet penetration forecast to increase to a no less impressive 80% from 49% (source: Frost and Sullivan’s Australian Mobile Device Usage Trends study), ever increasing mobile data allowances, faster networks, bigger and higher res screens, content quality on the rise, suddenly it is easy to see how quickly Cisco’s forecast will come to realize Down Under.

And naturally, with more of us consuming mobile video content by the day, marketers the world over are taking notice and starting to invest serious ad dollars on video ads as a new and effective way of reaching and engaging their audiences. Video is indeed one of the fastest growing digital ad formats, with its stickiness and engagement rate alleged to be superior to other digital formats.

Some parts of the world are embracing the video format more quickly than others however – with the US leading the charge yet again and Australia far behind in comparison.

Whilst the mobile advertising market in Australia is the fastest growing component of the digital sector (its $ value grew by 190% YOY in FY13), it is still only 5% of the total search and display spend – well behind the US and UK who report mobile as being 10% and 9% of spend respectively (source: IAB’s Mobile Trends Report, September 2013).

The first time I reported on the gap between Australian advertisers’ uptake of mobile and their audience’s mobile consumption was in January 2013.

9 months on the issue remains.

Here is to Australian marketers getting serious about all things mobile before 2017 – if not before the end of the year.

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