While online video shows strong growth, video ads grow at stunning rate

Online video continues to see major gains among American viewers with the number of videos viewed growing to 49.2 billion in February, a 49% jump from 2013, and a 75% increase over the same period in 2010, a CAGR of more than 15%.

The comScore Video Metrix said viewing time also was on the rise, with Americans watching nearly 18 hours of online video content during the month, up from just more than 17 hours a year ago, and 13.6 hours in 2011, the first year the company tracked viewing time. Over that period, online video viewing has a CAGR of 10%. Of course, comScore doesn’t count the time watched on non-ad supported services like Netflix, which would push average viewing times up considerably.

The number of unique viewers has inched up since 2010, growing to 182.4 million in February compared to 174 million in 2010.

While both videos viewed and length-of-viewing statistics are impressive, the growth of video advertising has been stunning.

ComScore said the number of video ads viewed exploded in the past year with American’s watching 24.6 billion streamed video ads, up a whopping 148% from 9.9 billion video ads in the same period a year ago, and 228% from the 7.5 billion video ads viewed in 2011, a CAGR of more than 81%.

While there’s been some hubbub lately about ad viewability numbers and how long an ad needs to be watched before it “counts” as viewed (a new standard from the Media Ratings Council says one second is enough), the bottom line is that publishers are seeing a lot more interest from brands and from agencies as consumers increasingly turn to video delivered online.

ComScore, meanwhile, reported AOL is No. 1 in video ad views with 3.2 billion ad impressions topping No. 2 Google Sites (3 billion), Live Rail (2.9 billion), BrightRoll Platform (2.6 billion) and TubeMogul Video Ad Platform (2.4 billion).

Overall time watching video ads was 9.1 billion minutes, with AOL, Inc. delivering the highest duration of video ads at 1.5 billion minutes.

The report said video ads reached 51.6 percent of the total U.S. population an average of 154 times during the month. Hulu delivered the highest frequency of video ads to its viewers with an average of 67.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn