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Digital Video Extending, Not Eroding TV; Viewing Up in '06


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New digital video platforms are extending the reach of the traditional TV, especially among among viewers 18-34 who are affluent and highly educated, writes MediaPost, citing a new study by Nielsen Analytics together with Scarborough Research.

Perhaps the most surprising finding by Nielsen recently was that digital video is not eroding TV programming; rather, the trend is going in the other direction. Specifically, household viewing has risen by more than an hour a day over the past decade - to 8 hours, 14 minutes per person for the 2005-2006 TV season.

Nielsen says its findings pave the way for all TV content providers to build new digital revenue models. "By researching controlled broadband access, this study concludes that programmers have the opportunity to create new revenue models to benefit content owners and their affiliated stations," said Larry Gerbrandt, general manager and SVP of Nielsen Analytics, author of the study, titled "Whatever, Whenever, Wherever: How Broadband is Redefining the Economics of Television."

"Such ad-supported models are uniquely adaptable to the broadband environment and are potentially superior to existing models because they can take full advantage of the digital environment. With broadband streams, for example, fast-forwarding through commercials can be disabled making it more likely the consumers will watch the spots and possibly interact with them."

Digital video businesses can easily disable fast-forward options so viewers can't fast-forward through ads, usually 15: and 30: pre-rolls.

The report notes that the 18-34 demo represents 34 percent of those with broadband, while the 55+ demo is expected to grow, meaning this high-income group will become a valuable opportunity.

Related Topics

user experience
online ad market
research & stats
demographics
ad buying & planning
signs of what's to come
media convergence
broadband
entertainment
ad targeting

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