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Online Video Advertising To Grow

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TV producers are seeing value in shows after they air. Just as DVDs boost movie revenues, DVD sets of TV shows are selling well, along with iTunes downloads of individual shows for $1.99.

Rebroadcasts are proving beneficial for TV show sponsors who support hosting on the TV shows sites. This will likely grow the online video advertising beyond its current status.

Viewers who access content through TV networks sites are more likely to pay attention to the brands that sponsor that content. They also have a higher level of engagement with downloaded video on network sites and are more willing to watch those same shows on traditional TV, according to a new study by Knowledge Networks.

Close to half (49%) of TV network Web site viewers say that sponsorship of a downloaded episode would increase their consideration of the sponsoring brand.

Users of downloaded network video are significantly more likely than Internet users overall (30% vs.22%) to make purchases from companies that advertise on their favorite programs.

Viewers find the Internet a convenient way to watch TV episodes they may have missed. A quarter of viewers of downloaded network TV video say they watch regular TV shows more often because of what they have seen on Internet video.

“For the most part, features on network and program Web sites are building equity with program viewers, for both the TV networks and their advertisers,” noted David Tice of Knowledge Networks. “There is much room to grow this crossover TV-Web audience.”

When it comes to revenue, paid search leads the way. As for growth rates, online video advertising is set to increase in the next several years.

 David Hallerman, an eMarketer senior analyst projects that by 2011 video ad spending will be over $4 billion.

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Online Video Advertising To Grow
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