SOURCE: Advertising.com

August 28, 2007 10:00 ET

Online Video: Consumers Prefers News Clips, Shorter Ads

Advertising.com Announces Results of Bi-Annual Online Video Study

BALTIMORE, MD--(Marketwire - August 28, 2007) - Advertising.com, Inc. today released the results of its bi-annual video study, an in-depth analysis of consumer behavior as it relates to online video viewing and response to video advertising. The study covered the first two quarters of 2007 and incorporated both consumer survey data and video advertising performance data from the Advertising.com video network. The survey was hosted by online market research company InsightExpress.

Study results indicate that the majority of consumers are viewing video online, at 62 percent of survey respondents. Contrary to popular opinion, these viewers are not just young adults viewing user-generated videos; in fact, most (69 percent) are ages 35 and older with a preference for viewing news clips online.

"The Internet is still seen first and foremost as an information resource. With news clips remaining the most popular type of streamed content, video viewing habits reflect that status," said Lynda Clarizio, president of Advertising.com. "But it will be interesting to see how viewership evolves with the rise of social networks, more diverse video content, increased interactive gaming, and other such advances in online entertainment. I think we may see a shift in usage toward recreation; these latest figures certainly hint at that trend."

As for video advertisements, consumers accept them as part of the video experience -- with 94 percent of respondents preferring ads to subscription fees. However, according to 63 percent of survey respondents, shorter ads would make the experience more pleasurable. Shorter spots also deliver higher percent-viewed rates, according to data from the Advertising.com network.

Other key findings include:

--  More news, user-generated content: In the first half of 2007, 62
    percent of consumers viewed news clips online, followed by movie trailers
    at 38 percent. Music videos came in third at 36 percent, decreasing from 47
    percent in the second half of 2006.
--  Tastes differ by age: The 18 to 34 year old audience prefers
    entertainment content such as music videos and TV shows. They also create
    more online video content than those ages 35 and older. In contrast, the 35
    and older audience is more likely to view news. Compared to the previous
    study, 18 to 34 year olds are streaming more movies, TV shows and user-
    generated videos; while those 35 and older are streaming more sports clips
    and user-generated videos than previously reported.
--  Catching up on TV, not replacing it: 51 percent of survey respondents
    would watch a television episode online if they missed it on TV; but 80
    percent of consumers say that online video usage does not cut into their TV
    time.
    

To read the complete study, please visit www.advertising.com.

About Advertising.com

Advertising.com, a wholly owned subsidiary of AOL LLC, is a global online advertising services company. The company offers a fully integrated suite of online advertising solutions, including display advertising, search engine marketing, managed affiliate placements and video advertising. These solutions are powered by Advertising.com's award-winning optimization technology and industry-leading third-party display advertising network, which reaches more unique visitors each month than any other online property.

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