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Online engagement by Internet users is increasing in part as a result of a shift toward video content and social networking, according to a new report by Nielsen.

Since 2003, interests of the average online user have shifted significantly. Categories that consisted of portal-oriented browsing sites, such as shopping directories and Internet tools/Web services, used to be the most popular categories for user engagement.

Now Internet users tend to prefer sites that contain more specialized content. The change in preference is due to the fact that video and social networking sites have become the two fastest growing categories in 2009.

The number of Americans visiting online video sites has increased 339 percent since 2003, while time spent on video sites has jumped almost 2,000 percent. In the last year unique viewers of online video grew 10 percent, the number of streams grew 41 percent, the streams per user grew 27 percent and the total minutes spent with online video increased 71 percent.

There are 87 percent more online social media users now than in 2003, with 883 percent more time spent on those sites. In the lat year time spent on social networking sites has risen 73 percent.

"The Internet remains a place of continuing innovation, with users finding new ways to integrate online usage into their daily lives," said Charles Buchwalter, SVP, Research and Analytics, Nielsen Online.

"In recent years the Internet has changed dramatically as people seek more personalized relationships online. In particular, time spent on social networks and video sites has increased astronomically. Advertisers are starting to positively re-assess the value of the online experience and create more meaningful relationships with consumers."