Online TV: More Ad Revs To Mine

Advertising tolerance for online video is much higher than what currently exists -- but much lower versus traditional TV formats.

A study released by comScore shows that online advertising's "sweet spot" is between 6 and 7 minutes per hour. That is substantially higher than the four minutes per hour that currently exists for most premium TV shows offered online.

Tania Yuki, director of online video and cross-platform product for comScore, states: "This finding, of course, suggests there's advertising revenue being left on the table and that media companies have not yet extracted full value out of the online medium."

But the 6 to 7 minutes per hour is about half that of non-programming content that currently exists on traditional TV -- network, cable, syndication, and local -- anywhere between 14 minutes to 17 minutes per hour of programming.

Other aspects of the survey revealed that 75% of viewers who regularly watch both online and traditional TV -- "cross-platform viewers," according to the report -- picked online over traditional TV because they could watch the show wherever they wanted. Another 74% picked online because they were able to watch the show on their own time.

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Seventy percent preferred online TV because they would stop and play shows. Sixty-seven percent liked it because there were less disruptions. Traditional TV did better than online when it came to video quality.

The initial findings of the report were presented at ARF Re:think conference on March 23.

 

 

Cross-Platform TV Viewer Media Preferences

Q: "For each attribute below, please select whether Online or TV is better."

December 2009

Total U.S., Cross-Platform TV Viewers, n=535

Source: comScore, Inc.

 

Response

Share of Cross-Platform Viewers

 

Online

TV

 

Watch the show wherever I want

75%

25%

 

Watch the show on my own time

74%

24%

 

Ability to stop and play show when I want

70%

30%

 

Less interference from commercials

67%

33%

 

Overall convenience

61%

39%

 

Overall viewing experience

32%

68%

 

View show as soon as it's released

31%

69%

 

Sound quality

28%

72%

 

Picture quality

25%

75%

 

 

 

 

 

 

 

 

 

 

TV Time-Shifting by Age Segment

December 2009

Total U.S., TV Viewers, n=1,825

Source: comScore, Inc.

 

Age Segment

Share of Viewers

 

Watch Live

Non-Live Viewing

 

Same Day Time Shifted - 3 Days After Airing

4-7 Days After Airing

More than 7 Days After Airing

 

18-24 Year Olds

35%

22%

20%

23%

 

25-34 Year Olds

35%

23%

24%

18%

 

35-49 Year Olds

46%

21%

17%

16%

 

50-64 Year Olds

55%

16%

17%

11%

 

65+ Year Olds

57%

16%

14%

13%

 

 

 

 

 

 

 

 

 

 

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