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65% of the World Watches Video on Demand and It's Changing Advertising

A new report shows the world of on-demand video is growing, and it’s impacting the way advertisers reach consumers.

In the past few years, the number of people watching video on demand has skyrocketed. Research released by Nielsen shows 65 percent of the world’s population watches video on demand, with 43 percent watching at least once a day.
This shift in the viewing landscape is causing changes. Companies like Hulu and Netflix are thriving, words like “binge-watching” have become commonplace and sitting down at a specific time to watch a show is as antiquated as a VHS.
How are advertisers reacting to these changes? Here’s how:

Realizing the need for convenience

Research shows 77 percent of on-demand viewers consume media in this manner because it’s more convenient for them.
A decade ago, advertisers were still relying on “prime time ad space” as its bread and butter. Brands that were looking to reach a large market would advertise during those golden evening hours to capture a big share of an audience.
With the concept of “prime time” diminishing, advertisers are placing ads within on demand video.

A new advertising platform

More than half of on-demand viewers say they’re okay with watching ads as long as they’re getting the programming for free.
That means consumers believe on-demand portals like YouTube are acceptable places for ads to run. So, it’s not surprising to see YouTube is touting that all of the Top 100 brands have run ads in the past year.
It’s not just YouTube. Advertisers are constantly looking for new ways to grab attention through video, and they’re willing to spend money to do it.
Spending on U.S. digital video ads grew by 42 percent to $7.62 billion in 2015. By 2019, that number is expected to reach $13 billion.

Rethinking demographics

Video on demand is more popular with the younger crowd, but the older generations are catching up. Twenty-four percent of Gen Xers and 15 percent of Baby Boomers are using an internet service like Netflix to consume media, proving advertising to an older audience isn’t out of the question with on-demand video.
The research provides powerful insight into what’s to come. As viewing habits change, so too will advertising options.

Key research findings

Nearly two-thirds of global respondents (65%) say they watch some form of VOD programming, which includes long-and short-form content.
More than half of global respondents (59%) say they don’t mind getting advertising if they can view free content.
More than three-quarters of global respondents (77%) who watch VOD programming agree that they do so because they can view at a time that is convenient for them.
The Numbers
(Data from Nielsen)
Viewing on the internet by age group
Generation Z (15-20): 31%
Millennials (21-34): 31%
Generation X (35-49): 24%
Baby Boomers (50-64): 15%
Silent Generation (65+): 6%
Daily VOD viewing by age group
Generation Z (15-20): 49%
Millennials (21-34): 49%
Generation X (35-49): 38%
Baby Boomers (50-64): 26%
Silent Generation (65+): 21%

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