SOURCE: Parks Associates

Parks Associates, international market research and consulting firm | www.ParksAssociates.com

May 18, 2010 10:52 ET

U.S. Online Video Advertising Revenue Will Exceed $1.3 Billion in 2010

Younger Consumers Receptive to Targeted Ads, Creating Openings for Cross-Platform Advertising and New Opportunities for Advertisers

DALLAS, TX--(Marketwire - May 18, 2010) -  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.

For more information on "Online Video Advertising: Strategies & Results," visit http://www.parksassociates.com or contact 972-490-1113, sales@parksassociates.com.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA)®, and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com; http://www.connectionsconference.com; http://www.connectionseurope.com; http://www.connectionsindustryinsights.com

(1) Note: overlap between age groups is intentional; demographic categories adjusted to match advertising industry standards.

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