Online video advertising is expected to eclipse $1.3 billion in 2010, according to Parks Associates. This growth is attributed to an increase in online video viewership along with the increased ability to use preferences and viewing history to better target specific viewers.
The filed report called Online Video Advertising: Strategies & Results ventures that many consumers are not highly opinionated about targeted advertising, especially not younger viewers. Examples of these advertisements include show overlays and pre-roll ads, based upon the user’s habits on TV, mobile and Internet.
50 percent of heads-of-household aged 18-34 have no solid opinion on targeted advertising. 42 percent aged 25-54 and 25 percent aged 55 also have no strong feelings on the matter.
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.
Currently online video does not have the reach that television broadcasts do, but it grows every year and features new content offerings like TV Everywhere. Over half of heads-of-household 25-54 watch online video at least weekly, with 75 percent of those aged 18-34.
Source: Parks Associates
