Younger consumers receptive to targeted ads, creating openings for cross-platform advertising and new opportunities for advertisers
Steady growth in online video viewership, combined with the ability to target specific viewers based on preferences and viewing history, will push U.S. revenues for online video advertising over $1.3 billion in 2010, according to Parks Associates.
The international research firm, which recently released the report Online Video Advertising: Strategies & Results, finds large percentages of consumers, especially younger consumers, have yet to form a strong opinion regarding targeted advertising. These advertisements include commercials shown before an online video or overlays displayed during the show, with the content based on the user’s Internet, TV, and mobile usage and viewing habits.
Among U.S. broadband households, almost 50% of heads-of-household aged 18-34 are indifferent to targeted advertising, while 42% aged 25-54 and 25% aged 55 or older are similarly neutral. [1]
“Indifference indicates consumers can be won over by new advertising strategies, provided these messages are designed well, with truly relevant content,” said Heather Way, research analyst, Parks Associates. “Also, the younger age groups are more receptive to the concept of targeted advertising, and advertisers place a premium on the ability to reach these demographics.”
While online video does not yet have the same audience reach as traditional broadcast and cable TV, the medium continues to grow its user base, and increased content offerings via TV Everywhere initiatives will bring in more viewers and boost advertising revenues. Currently over 50% of heads-of-household 25-54 watch online video at least weekly, and the percentage jumps to 75% for ages 18-34.
Online Video Advertising: Strategies & Results analyzes growth rates and patterns for online video viewing based on key advertising demographics. Additionally, the report profiles the major players and reviews existing business and pricing models. It includes implications and recommendations for industry investors and five-year U.S. online video advertising revenue forecasts. For more information, visit http://www.parksassociates.com or contact 972-490-1113, sales@parksassociates.com.
[1] Note: overlap between age groups is intentional; demographic categories adjusted to match advertising industry standards.
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