ONLINE INSIGHTS. Online Video Content & Advertising. Video Preferences, Habits and Actions in Q October 2011.

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1 Online Video Content & Advertising October 2011 Copyright

2 Overview: Online Video Content & Advertising Online video has enjoyed exponential growth in According to comscore, 180 million U.S. Internet users watched online video content in August for an average of 18 hours per viewer and the total U.S. Internet audience engaged in a record 6.9 billion viewing sessions. 1 In October 2011, Burst Media surveyed 1,025 U.S. online adults aged 18 or older to learn about how much online video content they watch, the kind(s) of content they watch and how they feel (and act) after viewing online video advertisements. Given increasing online video content consumption and the fact that video ads reached 50 percent of the total U.S. population in August 2, online advertisers and publishers alike have distinct opportunities to capitalize on this growing and evolving platform. Key Findings 7-in-10 (71.6%) web users overall watch online video content in a typical week; 39.0% of all those who watch spend between 1 and 5 hours with video content but time spent viewing varies depending on age and gender. Professionally-produced online video programming is growing in popularity with online viewers: 39.1% of all viewers watch full-length television shows, movies and/or sports programming online; 25.5% watch online highlights of regular television programming. 18.2% of all online viewers say they have taken action based on what they saw within an online video advertisement; 23.1% of persons aged say they have taken action. 4-in-5 (80.8%) online video viewers also use the Internet while they are watching television. 1,2 comscore: comscore Releases August 2011 U.S. Online Video Rankings. September 22,

3 Insight #1: Online Video Content Has Broad Appeal Time Spent Watching Online Video Content in a Typical Week 39.0% 32.2% 12.8% 3.8% 2.7% 0.6% 2.9% Some, But Less Than One Hour More Than 24 Chart #1: Time Spent Online Watching Online Video (All Online Viewers) Burst Media, October 2011 n = 1,016 Margin of Error = +/- 3.1% According to our findings, 7-in-10 web users overall 71.6% watch online video content in a typical week. At 79.2%, younger web users (those aged 18-34) are more likely than year-olds (71.7%) and those aged 55 or older (53.8%) to watch online video content. Of all web users who say they watch at least some online video, 39.0% a plurality spend between 1 and 5 hours in a typical week watching online video content. Another one-third (32.2%) spend less than 1 hour, and 12.8% spend between 6 and 10 hours. [See chart #1.] Men aged are the heaviest consumers of online video content, with one-in-five (19.7%) consuming 10 or more hours of video per week. Surprisingly, the oldest segment in the study respondents 65 years and older are also relatively heavy consumers, with 13.4% consuming 10 or more hours per week of online video content. In addition, of those who watch online video, 29.9% say they would watch more online video content if the quality of content were higher. One-quarter (26.4%) would watch more if their access were more flexible (i.e., the ability to watch anytime, anywhere, from any device). 3

4 Insight #2: Professionally-Produced Online Video Programming is Gaining Traction with Viewers Content Types That Men and Women Typically Watch Online Men Women 40.8% Comedy 36.9% 34.1% News 32.5% 30.3% Music 32.0% 24.5% Educational 31.2% 31.2% Sports 8.2% 13.9% Drama 24.7% 17.4% Lifestyle Information 20.6% 26.1% Adult/ Mature 8.3% 22.0% Animation/ Cartoons 11.3% 20.8% Political 11.9% 5.2% Celebrity News/Gossip 15.1% 7.9% Chart #2: Types of Online Video Content Watched Burst Media, October 2011 n = 887 Margin of Error = +/- 3.3% Reality TV 11.4% Professionally-produced online video programming is gaining traction with viewers. Two-fifths (39.1%) say they typically watch full-length television shows, movies and/or sporting events on the Internet. Onequarter (25.5%) of online viewers watch news, sports and entertainment highlights of regular television programming online. In addition, one-half (49.7%) of viewers say they typically watch user-generated content (UGC) on channels such as YouTube. Comedy is the most popular video content category with men and women: 38.8% of all viewers typically watch comedy videos online. Overall, news (33.3%) and music (31.2%) follow close behind as favored video types by both genders. There are some dramatic differences between men and women when it comes to the types of video content they typically watch online. Women are more likely than men to typically watch educational online video (31.2% vs. 24.5%), drama (24.7% vs. 13.9%) and celebrity news/gossip (15.1% vs. 5.2%). Conversely, men are more likely than women to watch sports (31.2% vs. 8.2%), adult/mature content (26.1% vs. 8.3%), animation/ cartoons (22.0% vs. 11.3%) and political video content (20.8% vs. 11.9%). [See chart #2.] 4

5 Insight #3: Online Video Advertising Spawns Action Viewers Who Took Action After Viewing an Online Video Ad Men Women 24.1% 22.1% 26.3% 19.1% 9.2% 14.5% Respondent Age 55+ Chart #3: Online Video Ad Action Burst Media, October 2011 n = 714 Margin of Error = +/- 3.7% A Q study by AdoTube featured in emarketer found that compared to standard display media, viewers are more likely to interact and engage with online video standard pre-roll ads on average enjoy a completion rate of 51%, an ad retention rate of 77% and a CTR of 2.7%. 3 Our findings are similar in that a relatively high number of respondents say they have taken an action such as visiting an advertiser s website or making a purchase based on what they saw within an online video advertisement. We found that 18.2% of all online video viewers took an action based on what they saw within an online video advertisement, and nearly one-quarter (23.1%) of persons aged say they have taken action. Overall, men and women at 18.0% and 18.5% respectively say they have taken an action based on an online video ad. However, respondents aged or 55 or older are more likely than those aged to act on video ads. One-quarter (24.1%) of men aged say they have taken action, as have 26.3% of men aged 55 or older. One-fifth (22.1%) of women aged say they have taken action, as have 19.1% of women aged 55 or older. [See chart #3.] 3 emarketer: Options for Online Video Ad Viewers Lead to Greater Engagement. July 25,

6 Insight #4: Online Video Viewers Multitask and Balance Web Surfing with Television Watching Online Video Viewers Use the Internet While Watching Television 4.8% 11.3% 14.3% 15.3% 20.5% 33.7% Rarely Sometimes Often Always Never No Answer Chart #4: Frequency of Going Online While Watching Television Burst Media, October 2011 n = 1,006 Margin of Error = +/- 3.1% A four-fifths (80.8%) majority of online video viewers say they also use the Internet while they are watching television. One-half 49.0% say they either always or often surf the web while watching television. Only 14.3% say they never go online while watching television. [See chart #4.] Interestingly, of those survey respondents who say they do not watch any online video content, two-thirds (66.3%) say they go online while watching television. Viewers of online video content partake in a variety of online activities while watching television. 57.7% check , 48.0% surf the web for content that is not related to what s on the television, 36.2% interact with others online (via chat and/or social media) and 35.1% surf for content that is related to the television program. In addition, 26.7% pay bills and one-quarter (23.9%) say they shop. 6

7 How You Can Use This Information Online video is growing by leaps and bounds. And it is showing no signs of stopping according to Cisco, online video will account for two-thirds of all consumer Internet traffic by Online video programming and content is by its nature highly engaging. Web publishers seeking to draw larger audiences and increase time spent on a site will benefit through effective use of online video, whether produced in-house or brought to the site(s) via online video syndication services. Relevant online video content also enhances standard web content and can improve a publisher s search engine rankings, social media footprint and more. Advertisers also have much to gain with online video. Whether it s long-form advertising, a repurposing of a television spot (via pre-roll) or other customized branding and/or action-based solutions (e.g., sponsored content, branded video players, etc.), online video advertising can be very effective and efficient for brand and performance marketers to pair their advertising messages with immersive content that draws targeted audiences. 4 Cisco: Visual Networking Index. June Product Showcase: Burst Media Video Suite Burst Media s comprehensive suite of online video solutions gives advertisers the ability to align brand messaging with professionally-produced video across our vertical channels and tailored content offerings. Maximize ROI with the Burst Media Video Suite The Burst Media Video Suite is the industry s deepest and most scalable collection of online video products and sponsorships to drive brand engagement and lift. On the back-end, your online video campaigns will be fully integrated with our rich set of targeting, optimization and reporting capabilities all of which ensure efficiency and maximum ROI. Components of the Burst Media Video Suite Include: Burst Media TV Burst Media Video Bar Burst Media Video Widgets Playlist Pre-Roll Branded Video Player TV Takeover Be Part of the Conversation Contact your Burst Media Account Executive or visit burstmedia.com to learn more about the Burst Media Video Suite and our other online solutions that deliver high visibility, impact and consumer interaction. 7

8 About Burst Media Founded in 1995, Burst Media represents thousands of independent web publishers. Through a select group of vertical channels, built around areas of specific interest, Burst connects advertisers with audiences across the web s most dynamic communities in a social, engaging way. A wholly owned subsidiary of blinkx PLC (LSE AIM: BLNX), Burst is headquartered in Burlington, Massachusetts, with sales offices throughout the United States and in the UK. Visit us at or call +1 (781) for more About Online Insights Trends in Internet use and consumers online purchasing behaviors are constantly evolving, so it can be very difficult to stay up to speed. That s why Burst Media publishes Online Insights our research series that highlights emerging trends in online media and ecommerce. Findings reported in Online Insights are based on an online survey fielded across our collection of sites. 8

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