Study: Advertisers missing opportunities with online advertising

A study of online video viewers says 66 percent watch more online video now than they did a year ago, and those viewers could be reached more often, and with less expense, than traditional TV viewers.

The study, for online ad technology company YuMe, was conducted by Frank N. Magid Associates, and also found that 48 percent of respondents said they'll likely watch more in 2011 than they did in 2010. Magid also said YuMe's audience perceived the quality of online video content to be on par with television and cited they could find more exclusive content online than on TV.

Among the study's other findings:

  • Online Video Has Gone Mainstream: Consumers who are watching more online video compared to 12 months ago skew older, female and higher educated.
  • Online Video Content is on Par with TV: Viewers' perception of the quality of video content online has improved and 50 percent of respondents felt they could find more exclusive content online than on TV.
  • Watching Online Video Is a Daily Routine: 49 percent of respondents said they watch online video daily, with 7 hours being the mean time spent per week.
  • Short-form Content Reigns Supreme Online: 70 percent of respondents said they watch program clips that are shorter than 5 minutes in length.
  • Scheduled TV Programs are Less Relevant: 60 percent of viewers watch online video because they can watch it whenever they want.
  • Online Viewers are More Engaged with Ads: Multi-tasking is more pervasive when watching television ads than when watching online video ads. 58 percent of respondents said they do things around the house when ads come on TV versus 26 percent for ads online.
  • Heavy Online Video Viewers Can't Be Reached Only with TV: Heavy online video viewers are reducing their television viewing yet they are increasing their online video viewing which indicates it will be even more difficult to reach these viewers via television in the future.

YuMe said it also conducted its own share-shift study, using Nielsen data, which looked at what would happen when a brand advertiser reallocated some of its TV budget to online.

Across the three main demographics targeted by the brand, (Women 18-54, Women 25-34, Men 25-34), the analysis found that as dollars were reallocated, the brand increased its overall reach and gained access to viewers they would not have reached with TV alone, frequency increased, and CPM impressions decreased significantly.

For more:
- see this release
- see this AdWeek article

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