Coveted 18- to-24-year-old consumers now spend more time watching Web-distributed video than broadcast television, according to a new survey released by online video ad network LiveRail.
"We polled several hundred under-25-year-olds, and an overwhelming majority are now watching as much or more video content online as on regular TV," said Mark Trefgarne, CEO of LiveRail. "We were
genuinely surprised by the results."
Rather than short-form consumer-generated media, Trefgarne attributes this trend largely to an increase in the availability of quality long-form content from
sites like Hulu and TV.com.
LiveRail's survey included over 400 respondents in the 18-24 category and was conducted online via popular social networks such as Facebook and MySpace.
Of these
respondents, 53% stated that in an average month they spent "more time watching online video than TV." About 19% of respondents said they watched "about the same," while 28% said they watched "more TV
than online video."
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According to comScore, frequent viewers are now consuming an average of 273.1 minutes of online video content per month--up from 195 minutes a year ago.
What's more,
viewers on LiveRail-enabled sites are spending an average of 51% more time watching video content than at the start of the year.
The average click-through rates for video overlays were 1.2% in
the quarter, according to LiveRail. Closeout rates for overlays were 69.0%. Animated overlay click-through rates were 4.2% in the quarter. Completion rates for overlay-initiated video ads were 90%.
In the fourth quarter of last year, average CPMs appeared to be up. Average CPMs for overlay ad campaigns were $7.40. The current market size for overlays, meanwhile, was approximately $138
million, according to LiveRail.