Video Ads Will Reach Four Out of Five Viewers in 2012
As people spend more time watching online video content, the share of Internet users regularly viewing video ads will grow in concert, reaching four out of five users in 2012.
This was a key finding from a September report from research firm eMarketer called Video Advertising Growth Factors. In the report, senior analyst David Hallerman explains that while in 2007 U.S. online video advertising viewer penetration was 59.2 percent, by 2012 that number will grow to 80.6 percent.
While an available audience is one essential ingredient in developing the video ad market, Hallerman says the increase of trusted, professional-quality video content, which attracts a broad base of viewers and gives marketers the mass reach they demand for most campaigns, will be another key growth factor.
However, the report says some media companies' fear of cannibalizing their legacy business models means gradual and sometimes grudging placement of their video assets online.
The quality of video the audience likes to consume also hinders more speedy and large-scale growth for associated advertising, the report points out. Citing recent comScore research, the report notes YouTube accounted for 98 percent of the videos viewed at the top-ranked Google sites, where the average viewer streamed 54.7 videos in July 2008 — far more than any other destination.
However, the vast majority of YouTube videos are user-generated, which typically provide poor support for most advertisers.
Finally, the report says the interplay between quality of video and quantity of viewers creates a mixed environment for online video advertising growth. Although more professional videos supporting large-scale advertising are coming online, so too, are more videos that are often useless for marketers, grabbing a large share of the audience.