Technology | Media | Telecommunications

Thursday, July 24, 2008

Consumers Accepting of Online Video Ads

Driven by increased online video adoption, advertising spend continues to move online. As more American consumers go online to stream or download video content, the number of advertising-subsidized online video services is also growing.

With all these new advertising models reaching the market, the question on marketers minds remains -- how will consumers react to the growing proliferation of advertising supported video services?

Recent research conducted by Ipsos suggests that the majority of digital video consumers will find the inclusion of advertising a "reasonable" and customary expectation for accessing free online video content.

The Ipsos market study shows that at least three in four digital video consumers say they would find it reasonable for advertising to be included in the free digital distribution of full-length TV shows and movies.

Around two-thirds say the inclusion of advertising would be reasonable with free access to music videos, short news or sports clips. However, consumer reaction to this concept does vary by type of digital video content.

Consumers generally find it more acceptable to have advertising included within longer, professionally produced video offerings such as full-length movies or TV shows, should this content be available for free online.

However, fewer are ready to accept this model as the price of admission to shorter-form content or less-professionally produced content.

The one content type that may be the exception is low-budget video content. Just over half (52 percent) of consumers age 12+ who have downloaded or streamed a video online say they would find it "unreasonable" to have advertising embedded within most user generated video content.