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Monday, January 21, 2008

Online Video Rising in Popularity Despite Ads

A survey by BurstMedia about online video consumption shows that (surprise surprise) young males are the dominate viewers, and they ain't so crazy for in-stream ads.

The December survey indicates that nearly 60 percent of netizens watch video on a weekly basis, but gender plays a role in viewing habits, with more than two-thirds of males watching while less than half of females checking out a stream.

This is good news for advertisers since young males are THE demographic to have. Not-so-good-news is that half of the audience tunes out once an ad appears in the video. Ah the TiVo generation - so impatient!

Netizens have been spoiled to get to watch clips aplenty sans ads, but that must change. Someone has to pay for this content, and I doubt that most folks would be willing to actually pay for the news and entertainment clips that they are consuming. Consumers will adapt to this reality as they will have no choice but to tolerate some advertising within quality programming. This year will be the shakeout years as the ad models are refined and users adjust.

The pressure is greater than ever on advertisers to make their content as entertaining as possible. The luxury of a captive audience is no longer, a victim of the fast-forward button. Surprisingly the 18-24 year olds were the most willing to watch an ad, and more than one-third said they pay more attention to video than static ads.

By John Gartner at 10:29 AM | Comments (1)

(1) Thoughts on Online Video Rising in Popularity Despite Ads

John - Great point. With the lean-forward, on-demand experience of the web added to the TiVo mindset traditional video advertising is finding some tough sledding in the cross-over.

People are looking for entertainment and relevant content - advertisers have to find a way to work within that framework in a way that's more valuable to (and accepted by) the viewer.

Comments by Morgan : Wednesday, January 23, 2008 at 03:39 PM

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