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Ads Online Gaining Acceptance

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Industry Articles

CENTER FOR MEDIA RESEARCH

THURSDAY, JULY 22, 2010

According to research conducted by Frank N. Magid Associates with Magid Media Futures 2010 study, half of respondents now watch online video weekly or more often, an increase from 43% in 2009. Viewers aged 18 to 24 accounted for the greatest increase in weekly online video viewership. Consumers also said they expect to watch more video online over the coming year.

Erick Hachenburg, CEO of Metacafe, says that "... the dramatic increase seen over the last year in viewership from the coveted 18 to 24 year-old demographic raises the stakes for online video ad spend... these consumers are the ‘entertainment drivers' that define pop culture and determine breakout hits in the social media world... "

Short, professional videos accounted for eight of the 10 most popular video genres, including music videos, movie previews, clips of TV shows, sports and comedy. More than 25% of consumers overwhelmingly said watching short, professional videos online is just as entertaining as watching full-length TV shows on television. Ads in online video content are also increasingly seen as equally or more acceptable than TV ads.

Attitudes Toward Online Video Ads (% of US Online Video Viewers, May 2010)
Agree That:	% of Respondents
Ads in Online videos more acceptable	7%
Ads in Online videos just as acceptable as ads in TV shows	48
Ads in Online videos less acceptable	24
Not sure	22
Source: Magid Associates, "Media Futures," June 2010

Mike Vorhaus, President of Magid Advisors, said "... the findings represent an important shift in behaviors and attitudes over last year... professionally produced short-form content preferred by the majority of respondents further solidifies this entertainment genre... "

The research for trends and insights into consumer behavior, and response to online video content and advertising, yields these key findings:

Half of Internet users now watch online video weekly or more frequently, up from 43% in 2009
Viewers aged 18 to24 have the most voracious appetite for online video, with 85% of males and 68% of females now watching online video weekly
Time spent watching online video is expected to grow by 5% over the next 12 months
Three out of four respondents watch some type of short professionally produced videos online regularly, with the highest percentage among 18 to34 year-olds (83% of males and 75% of females)
Short professional online videos rival TV shows in entertainment value, with 31% of respondents finding them equally or more entertaining than watching full-length TV shows on a television
63% of online video viewers regularly watch music videos, movie previews, clips of TV shows, sports content or video game content

Millennials, the biggest fans of online video, were also the most comfortable with the ads. Nearly a fifth of men ages 18 to 24 thought online video ads were more acceptable than TV ads; 10% of women the same age agreed. Older users tended to view the two as equivalent.

Attitudes Toward Online Video Ads (Age & Gender, % of Group, May 2010)
	Online Video Ads Better		Online Video Ads Same		Online Video Ads Less Acceptable
Age	Male	Female	Male	Female	Male	Female
8-11	5%	5%	49	44%	28	25%
12-17	7	5	50	46	23	25
18-24	18	10	49	47	23	25
25-34	11	5	54	50	19	20
35-44	9	6	46	40	25	24
45-54	4	1	50	40	29	19
55-64	2	3	44	50	34	14
Source: Magid Associates, "Media Futures," June 2010

Younger viewers may feel so positively toward online video ads because they realize how few there are in comparison to television commercials. Two-thirds of cross-platform TV viewers told comScore in December 2009 that watching online was better because there were fewer ads, but the same study indicated users would tolerate more interruptions.

For additional information, please visit Metacafe here.

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