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Where Are We Watching?

October 11, 2012

Viewers are turning to their mobile devices to watch video anywhere and anytime they want it. Whether it’s the subway, the laundromat or a little league game, the idea of getting home to watch video on their television (unless it’s for a longer viewing experience) is a thing of the past.

The rise of the second screen is changing video consumption patterns even more.  11 percent of people who watched the U.S. presidential debate were accessing a second debate-related screen, either on their computer, smartphone or tablet, watching or reading related coverage at the same time.

All of this web video consumption greatly increases the opportunity for advertisers to show their ads to viewers wherever they are watching. And advertisers are delivering. Video ads reached 54 percent of the total U.S. population an average of 58 times during the month. Hulu delivered the highest frequency of video ads to its viewers with an average of 51, while Google Sites delivered an average of 19 ads per viewer.

According to research compiled by Business Insider, more and more advertisers are moving their ad dollars to web video. Forrester recently estimated that video advertising spend will triple to more than $9 billion by 2017.

However, Peter Kafka, a writer for AllThingsD, points out that this growing online video advertising is not taking away from TV advertising.

“Year in, year out, advertisers have been dumping around $70 billion into TV, and the Web video guys really haven’t captured any of it. The growth they have seen comes mostly from ad dollars moved out of other Web properties.”

Cleverly, many advertisers have created commercials that go viral and therefore don't require paid placements. What’s the best recent example of that? You guessed it, The Old Spice Guy. Perhaps that’s how Proctor and Gamble lead the pack in terms of top video advertisers by views.

Who else is a top video advertiser by views?  ComScore breaks it down in this graph.