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BizReport : Viral Marketing : February 02, 2009 tests more video ads

A report from - yes, the Alphabet Network - indicates that online consumers will actually tolerate twice the amount of video ads currently being shown. The question is should advertisers go along with the research and risk alienating online consumers? Or stick to their guns by refusing to add ads to online content?

by Kristina Knight

Researchers from Nielsen Media Research began compiling numbers early in 2008; their research indicates that video content providers could make much more money from ad revenue by adding ads; at the same time, they say, consumers will remain engaged because the online content has been chosen by them.

The results of the study were discussed at the National Association of Television Program Executives conference in Las Vegas.

Research has shown that consumers are more engaged with online content and because they can't fast forward through ads online they have much better ad recall. From this new study it seems that ad recall was not diminished vastly, that the engagement level remained high and that consumers' purchasing intent was not changed.

Despite these indications, is it wise to glut the online video market the way network television - which is seeing fewer and fewer viewers - has been glutted? A 30-minute sit-com, for example, is now just over 20 minutes in actual content. Will consumers turn away from online video if too many ads are added?

Tags: ABC, online video, video advertising, viral marketing

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  • Megan Lilly

    It is encouraging to see that users can tolerate more online advertisements than are currently being shows, but the key word is tolerate. The goal of online advertising is to inform and persuade, not just tolerate. Companies like GeniusRocket and XLNTads are tapping into user generated content for viral videos and online advertising. Because the content is user generated with these companies, the content is engaging and moves past "tolerate" to "enjoy, promote, and act."



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