Skip to main content

Advertisers Share Consumer Interest in Video

Internet video's effect on television will ultimately be similar to television's effect on radio, according to the findings of a Yankee Group study. Radio survived the ordeal, but has never been the same since the transition.

The emergence of internet video is fundamentally altering the relationship between content owners, service providers and consumers, introducing new innovative companies to the ecosystem and is empowering consumer choice.

Companies have been trying to harness the power of the internet as a distribution channel for video for many years. Early endeavors such as Pop.com, Pseudo.com and the Den failed, but we know now that 2005 emerged as a tipping point for the internet distribution of video:

- In its first 12 months, consumers purchased 45 million videos from iTunes.

- YouTube averaged 13 million unique visitors monthly and delivered an average of 100 million streams per month to users.

- During a 2-month trial in May and June 2006, ABC.com offered streaming episodes of its prime-time programming such as Lost, Desperate Housewives, Commander-in-Chief and Alias. During this trial period ABC served up more than 5.7 million episodes.

Overall, internet users viewed an average of 1.5 billion video streams monthly in 2005 and in 2006. Yankee Group estimates that this will grow to an average of 7.1 billion video streams viewed monthly. As a result, internet-delivered video (streamed and downloaded) is emerging as a new source of revenue for content owners.

Driven by subscriptions, downloads and advertising, internet-delivered video, particularly broadband video, generated $270 million in revenue in 2005. By year-end 2006, Yankee Group forecast that this would grow to $910 million; by 2011, it will reach $4.23 billion.

Yankee concludes that advertisers will continue to push content owners to put more video content online; and content owners will follow the ad revenue. As traditional advertising mediums (i.e. TV, print, radio) have become less effective, advertisers have clamored for a better means of reaching consumers with their message.

Early research indicates that in-stream advertising might still be the answer. As previously noted, research by ABC during its streaming trial during May and June 2006 showed advert recall was around 87 percent, compared with 24 percent for average TV recall.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent