Good news for online video monetization - Online Video Ads Work. New research finds that consumers watching online tv are more engaged and pay more attention to both the advertising and the content that they watch online than they do when watching television at home.
New research from Simmons, a media consultancy unit of Experian Research Services shows that consumers are 47 percent more engaged by the advertising that runs with television programs viewed online than those watched on a TV set. The same study found that viewers were 25 percent more engaged in the content on the shows, are 18% more engaged in ads online, as opposed to print versions (magazines, newspapers, etc), and they are 15% more engaged in magazine articles online than in print form.
Back in November, the IAB (Internet Advertising Bureau) reported that Internet ad revenue reached $5.2 billion in the third quarter of 2007, up a full 25 percent over a year before. Combine that with consumers who are engaged and pay attention to ads, and you have an ideal advertising model.
The study defines "engagement" according to six characteristics that respondents identify with media:
- Trustworthy - the media is trusted by consumers and does not sensationalize things
- Inspirational - the media inspires consumers and connects with them emotionally
- Life Enhancing - consumers are learning about new things from the medium, which ultimately helps them make better decisions
- Social Interaction - the media is constantly giving consumers fodder for conversation with family and friends
- Personal Timeout - consumers acknowledge that the time they spend with the media is time just for them and improves their mood
- Ad Attention/Receptivity - the advertisements that run in the media are of interest to the consumer who is ultimately more likely to purchase products advertised in it
The Simmons study was based on 74,996 interviews with U.S. adults about the TV programs, magazines and Web sites that they watch, read and visit. The survey was conducted online and via telephone between October 2006 and September 2007.
Thanks to TechCrunch for pointing this out