The Internet TV advertising industry is set to grow at a compound annual growth rate of 42 per cent from 2011 to 2016, increasing in value from $54 million to $311 million according to Frost & Sullivan’s latest report on the Australian Online Video Market, written in association with media and technology company, The Video Network
This massive growth outlook follows an explosion in online video streaming in Australia, which grew 550 per cent from less than 2 billion videos in 2007 to 11 billion in 2011, primarily driven by cheaper bandwidth, greater choice of online content and higher data caps. On an individual basis, Australians are now watching around 10.2 hours of online video per month and are quickly catching up to US and UK consumers who watch 17.3 and 17 hours of online video per month respectively.
Peter Ostick, The Video Network’s Co-Managing Director, said Australia was on the verge of a significant tipping point when it comes to how and when we consume video content.
“As technology improves and the variety of content increases, Australia’s video content viewing habits are changing rapidly with more of us choosing to watch television online. While this sector is in its early days, Internet TV is already reaching upwards of 12 million viewers per month according to comScore statistics, which represents a huge potential for advertisers within this emerging market,” he said.