Research from Parks Associates has revealed that this year U.S. online video ad revenue is all set to exceed the $1.3 billion mark.
The report attributes this to a continuing growth in online video viewership and targeting possibilities that enable advertisers to target viewers based on both preferences and viewing history.
Parks also found that younger consumers are far more receptive to targeted ads, "creating openings for cross-platform ads and other opportunities for advertisers".
Commercials shown before the actual online video and overlays displayed during the video, with the content based on the user's Internet, TV, and mobile usage and viewing habits form the crux of online video ads, MediaPost writes.
Further we note that amongst all U.S. broadband households, almost 50% of heads-of-household that are between 18-34 years of age are indifferent to targeted advertising, while 42% of them which are between 25-54 years and 25% of these who age 55 or above are also neutral.
MediaPost quotes Heather Way, research analyst at Parks Associates, sating that these indifferences indicate that consumers can be won over by new advertising strategies, provided the messages are designed well, with truly relevant content. Why would it be any different in online video content than in other content, right?
Way further states that 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”. Yes, unfortunately, targeting has a cost…
What else is there to say? That online video does not yet have the same audience reach as traditional broadcast and cable TV (that would be the day), that the medium is growing its user base (no surprise there), and that increased content offerings via TV Everywhere initiatives will bring in more viewers and boost advertising revenues.
Presently, over 50% of heads-of-household between 25 and 54 watch online video at least weekly, and the percentage jumps to 75% for the age group between 18 and34.
You can read more in this article on MediaPost.
Join me in the Social Marketing Forum