June 13, 2006
Lotsa of optimism buiding for brand advertising on broadband over the last few days.
ComScore just announced an analysis of web consumption of both video content and video ads:
comScore Networks today released an analysis based on its newly launched Video Metrix service, the first-ever monthly reporting of consumer video consumption of both content and ads across the Web along with the demographic characteristics of video viewers. Among notable trends was the marked increase in the number of consumers viewing video online, which grew 18 percent from October 2005 to March 2006. In total, consumers viewed 3.7 billion video streams in March and slightly less than 100 minutes of video content per viewer per month, compared to an average of 85 minutes in October.
While the composition of video consumers is fairly evenly split among males (52 percent) and females (48 percent), the male audience is much more engaged with video, with the average male viewer seeing nearly two hours per month, while females consume approximately one hour and twenty minutes of video per month. Overall, males in the highly-coveted 25-34 age group have the highest intensity of video consumption, with an average of 140 minutes of video consumed per month.
“Video consumption on the Web is rapidly approaching the tipping point for advertisers,” said Peter Daboll, president and CEO of comScore Media Metrix. “With two-thirds of consumers accessing the Internet from home using a broadband connection, and publishers continuing to innovate by using the latest technologies to deliver content in a way that engages users, video consumption is poised to become a standard part of the online experience for a majority of consumers. Advertisers will increasingly seek opportunities to reach broad and frequently elusive markets, and do so with a level of engagement and richness that has not previously been available online.”
Meanwhile, back here at the Piper Jaffray conference David Moore (24/7 Real Media), Brian McAndrews (aQuantive) and David Rosenblatt (DoubleClick) all agree that video/brand advertising on the web will grow more rapidly than search advertising.
(In a good quotable, Rosenblatt, taking issue with Moore on the question of margin pressure, fesses up that "that is the beauty of being a private company, we can say those kinds of things).