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Video Chatterbox Nation 2018

A report on live video communications, yesterday, today and tomorrow

When TokBox (now part of Nexmo, the Vonage API Platform) ran its first national study into how Americans were using video communications in 2012, less than half of the country were regularly video chatting, and this was almost entirely with friends and family. Repeated in 2015, 2017 and again in June this year, the now longitudinal study provides a deep insight into the transition of video from social to commercial use, and its pervasiveness. For anyone focused on customer experience or digital transformation, this new report uncovers the changing consumer behaviors and expectations around video, an industry breakdown, and future outlook.

When TokBox (now part of Nexmo, the Vonage API Platform) ran its first national study into how Americans were using video communications in 2012, less than half of the country were regularly video chatting, and this was almost entirely with friends and family. Repeated in 2015, 2017 and again in June this year, the now longitudinal study provides a deep insight into the transition of video from social to commercial use, and its pervasiveness. For anyone focused on customer experience or digital transformation, this new report uncovers the changing consumer behaviors and expectations around video, an industry breakdown, and future outlook.

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Key Takeaways:

person-in-video-chat

Universal Adoption

Live video is reaching almost universal adoption for social use with friends and family

video-and-audio

Equal Channel

Video calls are fast becoming an equal channel to voice phone calls

mobile-phone

Mobile

Mobile has risen above desktop and laptop to be the primary device for video calling

happy-person

Personal Experience

A key motivation for video calling is that it creates a more personal experience than other channels

majority-of-people

Tipping Point

Consumers want to video chat not just with friends and family, but with businesses and brands too

building-blocks

Adoption

As video calling with businesses and brands becomes more mainstream, industries are adopting it at different rates

The age of live video

The rise of live video through the ages – from occasional Skype calls to an everyday method of social communication in everyone’s pocket

2015 – 2018 % growth of regular usage of communication methods with friends and family

live-video-growth-chart

3x

Regular use of messenger apps such as Facebook Messenger and WhatsApp to chat socially has tripled since 2015.

one in three people

One in three

Today, 1 in 3 people are video chatting at least once a week.

two in five people

Two in five

2 in 5 people report that they are video chatting more in 2018 than they did 1 year ago.

Who is video chatting the most and why?

The strongest adopters, and rising chatters – from chatterbox Millennials to increasingly talkative Generation X, people from all generations are video chatting more than ever before.

Which method of communication do you feel creates the most personal experience?

chat-mediums

Age breakdown of video chatters in 2018

88%

Age: 18-34

88-percent

Strongest appetite for live video is amongst millennials – 175% increase in regular live video usage in the last 3 years. Today ¼ of millenials video chat every day.

68%

Age: 35-54

68-percent

Rising video chatters are 35-54 year olds – almost ½ say they are video chatting more than they did 1 year ago.

35%

Age: 55+

35-percent

1/4 of people aged 55+ are video chatting more than they were 1 year ago.

What devices are they using?

Mobile overtakes laptop and desktop computers as the most popular device for video communication.

Top 3 devices used for video chat:

2012

  • laptop1. Laptop
  • desktop2. Desktop
  • mobile3. Mobile

2015

  • laptop1. Laptop
  • mobile2. Mobile
  • tablet3. Tablet

2018

  • mobile1. Mobile
  • laptop2. Laptop
  • tablet3. Tablet

68%

68-percent

68% of video calling is on mobile.

The rise of consumer-to-business video communications

With live video achieving the most rapid adoption in social communication, consumer-business communication is swiftly following suit.

2015 – 2018 % growth of regular usage of communication methods with businesses and brands

consumer-to-business-growth-chart
one in three people

One in three

Nearly 1 in 3 Americans are using live video to chat with a business, brand or service provider.
3x leap in 3 years.

one in four people

One in five

Almost 1 in 5 Americans are video chatting with businesses weekly or more often.

one in four people

One in four

1 in 4 people who have yet to video chat with a business or brand in 2018, say they will in the future.

Industry analysis: Maturity & Gaps

As video communications mature, it is inevitable that consumer appetites evolve at different rates for different types of services. This can make it difficult for companies to decide if and when to invest in video communications services, to ensure they are not investing in solutions consumers don’t want whilst also not falling behind competitors.


This graph highlights the relativity between consumer demand and industry delivery – based on a combination of survey responses, TokBox platform minutes and industry growth.

HIGH
LOW HIGH
high
Emerging
Developed
Demand index (Customer Adoption)

Emerging

There is a gap in the delivery of live video services and consumer demand for industries in this quadrant. The closer to the top, the higher level of consumer appetite; while industries further to the left have lower volumes of video calling (i.e. industry supply) and therefore a huge opportunity to fill demand.

Customer Service
handshake

Customer Service

While Customer Service falls just below the average in terms of industry adoption, consumer demand is the highest of all industries. Companies looking to meet consumer expectations would do well to further consider adding video as a service channel.

Developed

Industries in this quadrant have high volume of video calling as well high levels of consumer interest, and the demand and supply are fairly well matched. The further to the right, the higher the volume of video calling (i.e. industry supply); and the closer to the top the higher levels of consumer interest (i.e consumer demand).

Recruitment / HR
handshake

Recruitment / HR

Demand is very high. While supply is high, there are opportunities to increase usage via a broader offering and more accessible video-enabled services.

Trades / Repairs
handshake

Trade / Repairs

With high-growth consumer demand, companies in the Trades and Repairs industry have a huge opportunity to meet consumer appetite and drive uptake via a broader offering and more accessible video-enabled services.

Insurance
handshake

Insurance

Insurance experienced the strongest growth in consumer usage and appetite for live video in the last period. As demand accelerates, there is a considerable opportunity for insurance companies to add video chat as a key communication channel in the customer experience.

Healthcare
handshake

Healthcare

Healthcare has matured its delivery of video-enabled services, and consumer demand is strong and growing, although more could be done on consumer education to drive further uptake.

Education
handshake

Education

Education has well-developed industry supply with a broad offering of live video services across multiple use cases. However, consumer usage could be further encouraged by integrating live video into education platforms and workflows.

Professional Services
handshake

Professional Services

Professional services has advanced its adoption of live video with widespread industry applications. Consumer demand is growing, however stronger uptake could be driven by shifting away from standalone applications towards a more seamless live video experience.

Latent

In this quadrant, industry supply and consumer demand for live video calling are developing in parallel. From the bottom up, is increasing consumer interest; and from left to right is accelerating industry adoption demonstrated by higher volumes of video calling.

Retail / e-Commerce
handshake

Retail

Retail / Ecommerce is a fast mover industry and only just falls short of the top right quadrant in terms of both consumer and industry adoption. With upwards movement on both axes it would be expected to breakthrough in the next period.

Financial Services
handshake

Financial Services

Live video chat remains a relatively niche offering in Financial Services. With strong adoption in wealth management and high value segments, it has yet to emerge with mainstream consumer demand, although consumer appetite has grown considerably since the last report.

Sports
handshake

Sports

Interactive video remains niche in the Sports industry. With a relatively small core of highly engaged users, the benefits of video are powerful, but not yet to a wide array of mainstream audience.

Premature

In this quadrant, both consumer demand and industry supply of live video have yet to develop.

low
Latent
Premature
high
Opportunity Index (Industry Application)
Industry
Customer Service
Education
Financial Services
Healthcare
Insurance
Professional Services
Recruitment / HR
Retail / e-Commerce
Sports
Trade / Repairs
Industry spotlight  /  Trades and Repairs

Industry Spotlight

Trades and Repairs

Use cases:

  • Remote repair advice from a professional tradesperson
  • Live video customer support for troubleshooting a technical problem
  • Remote installation of services

> 2 in 5

More than 2 in 5 consumers say they would like to use live video to speak with a professional tradesperson such as being guided through fixing or replacing a part.

Consumer usage and appetite
for live video in trades and repairs

With high-growth consumer demand, companies in the Trades and Repairs industry have a huge opportunity to meet consumer appetite and drive uptake via a broader offering and more accessible video-enabled services.

Use cases:

  • Remote repair advice from a professional tradesperson
  • Live video customer support for troubleshooting a technical problem
  • Remote installation of services

> 2 in 5

More than 2 in 5 consumers say they would like to use live video to speak with a professional tradesperson such as being guided through fixing or replacing a part.

Consumer usage and appetite
for live video in trades and repairs

Use cases:

  • Remote interviews via live video
  • Live video embedded within recruitment and talent management platforms

1 in 2

Almost 1 in 2 millennials are already using live video to interview with recruiters or potential employers, while almost 1 in 2 Gen Xers are interested.

Consumer usage and appetite
for live video in HR & Recruitment

Demand is very high. While supply is high, there are opportunities to increase usage via a broader offering and more accessible video-enabled services.

Use cases:

  • Remote interviews via live video
  • Live video embedded within recruitment and talent management platforms

1 in 2

Almost 1 in 2 millennials are already using live video to interview with recruiters or potential employers, while almost 1 in 2 Gen Xers are interested.

Consumer usage and appetite
for live video in HR & Recruitment

Use cases:

  • Remote doctor consultations
  • Medical imaging collaboration
  • On-demand mental health counselling sessions
  • Live streamed fitness classes

1 in 4

Almost 1 in 4 people are already using live video to chat with a doctor about a non-emergency condition such as renewing a prescription. This is set to double in the coming year.

Consumer usage and appetite
for live video in healthcare

Healthcare has matured its delivery of video-enabled services, and consumer demand is strong and growing, although more could be done on consumer education to drive further uptake.

Use cases:

  • Remote doctor consultations
  • Medical imaging collaboration
  • On-demand mental health counselling sessions
  • Live streamed fitness classes

1 in 4

Almost 1 in 4 people are already using live video to chat with a doctor about a non-emergency condition such as renewing a prescription. This is set to double in the coming year.

Consumer usage and appetite
for live video in healthcare

Use cases:

  • Personalized shopping experiences via live video
  • Pre-sale live video support
  • Post-sale live video support

> 1 in 3

More than consumers are already using video chat to speak with a sales advisor about a big ticket or specialized item such as a new car or set of golf clubs.

Consumer usage and appetite
for live video in retail

Retail / Ecommerce is a fast mover industry and only just falls short of the top right quadrant in terms of both consumer and industry adoption. With upwards movement on both axes it would be expected to breakthrough in the next period.

Use cases:

  • Personalized shopping experiences via live video
  • Pre-sale live video support
  • Post-sale live video support

> 1 in 3

More than 1 in 3 consumers are already using video chat to speak with a sales advisor about a big ticket or specialized item such as a new car or set of golf clubs.

Consumer usage and appetite
for live video in retail

Use cases:

  • Virtual classrooms
  • Telepresence learning
  • Online tutoring via live video
  • Live video exam proctoring

1 in 3

1 in 3 consumers say they want to use live video chat to speak with a tutor remotely such as through a language learning app or education platform.

Consumer usage and appetite
for live video in education

Education has well-developed industry supply with a broad offering of live video services across multiple use cases. However, consumer usage could be further encouraged by integrating live video into education platforms and workflows.

Use cases:

  • Virtual classrooms
  • Telepresence learning
  • Online tutoring via live video
  • Live video exam proctoring

1 in 3

1 in 3 consumers say they want to use live video chat to speak with a tutor remotely such as through a language learning app or education platform.

Consumer usage and appetite
for live video in education

Use cases:

  • Remote inspections of damage to property
  • Live video customer service
  • Multiparty live video claim review with footage review

> 2 in 5

More than 2 in 5 consumers say they would consider using video chat to show an insurance consultant property damage for a claim such as car accident damage

Consumer usage and appetite
for live video in insurance

Insurance experienced the strongest growth in consumer usage and appetite for live video in the last period. As demand accelerates, there is a considerable opportunity for insurance companies to add video chat as a key communication channel in the customer experience.

Use cases:

  • Remote inspections of damage to property
  • Live video customer service
  • Multiparty live video claim review with footage review

> 2 in 5

More than 2 in 5 consumers say they would consider using video chat to show an insurance consultant property damage for a claim such as car accident damage

Consumer usage and appetite
for live video in insurance

Use cases:

  • Remote legal services
  • Tax consulting sessions via live video
  • Live virtual tours for real estate property and rentals
  • Live video language interpretation

Two in five

Nearly 2 in 5 people say they would use live video to speak with their legal advisor if it was available

Consumer usage and appetite
for live video in professional services

Professional services has advanced its adoption of live video with widespread industry applications. Consumer demand is growing, however stronger uptake could be driven by shifting away from standalone applications towards a more seamless live video experience.

Use cases:

  • Remote legal services
  • Tax consulting sessions via live video
  • Live virtual tours for real estate property and rentals
  • Live video language interpretation

Two in five

Nearly 2 in 5 people say they would use live video to speak with their legal advisor if it was available

Consumer usage and appetite
for live video in professional services

Use cases:

  • Live video customer support to troubleshoot an issue
  • General contact center enquiries via live video
  • Live video identity verifications
  • Remote technical support for complex product problems
  • Post-sales support

1 in 2

Almost 1 in 2 consumers say they would like to use live video to speak with a customer service or technical expert to help troubleshoot a product at home such as a wireless router.

Consumer usage and appetite
for live video in customer service

While Customer Service falls just below the average in terms of industry adoption, consumer demand is the highest of all industries. Companies looking to meet consumer expectations would do well to further consider adding video as a service channel.

Use cases:

  • Live video customer support to troubleshoot an issue
  • General contact center enquiries via live video
  • Live video identity verifications
  • Remote technical support for complex product problems
  • Post-sales support

1 in 2

Almost 1 in 2 consumers say they would like to use live video to speak with a customer service or technical expert to help troubleshoot a product at home such as a wireless router.

Consumer usage and appetite
for live video in customer service

Use cases:

  • Retail video banking with an advisor
  • Live video wealth management sessions
  • Identity verifications via live video

1 in 3

1 in 3 consumers say they will use live video in the future to chat with a banking advisor about a product such as a personal loan or mortgage.

Consumer usage and appetite
for live video in finance

Live video chat remains a relatively niche offering in Financial Services. With strong adoption in wealth management and high value segments, it has yet to emerge with mainstream consumer demand, although consumer appetite has grown considerably since the last report.

Use cases:

  • Retail video banking with an advisor
  • Live video wealth management sessions
  • Identity verifications via live video

1 in 3

1 in 3 consumers say they will use live video in the future to chat with a banking advisor about a product such as a personal loan or mortgage.

Consumer usage and appetite
for live video in finance

Use cases:

  • Multiplayer gaming via live video
  • Live streaming of games and eSports
  • Online or broadcast interview talk shows with live audience participation
  • Sports broadcast entertainment with live fan engagement

1 in 3

Almost 1 in 3 of people are interested in using live video to join a live broadcast online such as a live talk show with other fans, star guests and host.

Consumer usage and appetite
for live video in sports

Interactive video remains niche in the Sports industry. With a relatively small core of highly engaged users, the benefits of video are powerful, but not yet to a wide array of mainstream audience.

Use cases:

  • Multiplayer gaming via live video
  • Live streaming of games and eSports
  • Online or broadcast interview talk shows with live audience participation
  • Sports broadcast entertainment with live fan engagement

1 in 3

Almost 1 in 3 of people are interested in using live video to join a live broadcast online such as a live talk show with other fans, star guests and host.

Consumer usage and appetite
for live video in sports

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Video Chatterbox Nation 2018 study was created by TokBox and and administered by Toluna via the Toluna platform. The anonymous nationwide survey involved a sample of adults (18+ years of age) in accordance with US census representation figures for age, region, race, ethnicity, gender and income.
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