Here in the United States, television has—we hope only temporarily—lost its spark. Back in November, the Writer’s Guild of America went on strike after it was unable to reach an agreement with The Alliance of Motion Pictures and Television Producers. No new shows are being written meaning that many television programs are in danger of going “dark”—some are there already. I know I am certainly getting tired of re-runs and I was already sick of reality shows. How soon will we start signing up for more Netflix deliveries and tuning in online for our primetime entertainment? Pushing advertising dollars online, whether in the form of video or display ads, could provide advertisers with a new user base as they look for ways to reach consumers and tap into the $7 billion online video search and advertising market.
But successful online advertising takes more than a conversion of 30 second TV spots repurposed and redirected onto the Web. This week Burst Media, an online advertising network, released a survey that reiterated the growth in online video viewing across demographics while also highlighting low consumer acceptance of video ads. Numerous studies have charted the growth in video viewing online and research increasingly evinces consumer hesitation about viewing online video ads.
Ads, by their very nature, are disruptive. The good news from the Burst survey is that about 53.6 percent of online video viewers recall seeing in-stream – either pre-, mid-, or post-roll – ads attached to some form of web programming. Unfortunately, more than three-quarters (78.4 percent) of respondents said in-stream ads are intrusive and fully one-half (50.4 percent) say these ads disrupt their Internet experience.
The bad and the worse: the Burst survey found that one-half (50.7%) of respondents stop watching an online video once they encounter an in-stream advertisement. Ominously, 15.3% of respondents report they immediately leave the website once they encounter an in-stream advertisement in an online video. And in-stream advertising does not always make a lasting impression. In fact, two-thirds (69.1%) of survey respondents say they pay about the same or less attention to in-stream video advertisements than they do to standard creative units on the same page.
The Burst study should force advertisers, agencies and publishers to take notice as it juxtaposes the growing consumption of online video with the dissatisfaction consumers feel when content is interrupted by streaming ads.
“Online video is clearly in demand by web viewers,” said Jarvis Coffin, CEO of Burst Media.
“However, marketers need to tread carefully with online video advertising. It’s pretty clear from our research that most online video consumers are not yet willing to sit through advertising to get the content they seek. For online video advertising to be truly effective, advertisers must approach it with a consumer’s mindset, and recognize that what might be right for one segment could fail with another.”
The time for online video ads is now; video ads that respect and target consumer preferences so that users are willing and even eager to view them. Whatever the outcome of the writer’s strike, online video is winning an increasingly central role in consumer engagement with media. Content producers and media companies must make their video content more discoverable and accessible to consumers if they hope to capitalize on this trend. In doing so, they will make the shows and clips more valuable to advertisers, perhaps enticing those advertising budgets away from stalled television series and into the online realm.


