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BizReport : Research archives : January 17, 2007

Total Recall for Viral Video?

Perhaps not total recall, but a new study indicates viewers may have better recall for viral videos than was originally thought. Should that make online video a more substantial part of online advertising?

by Kristina Knight

According to a study from Burst Media, more than 56% of those who have viewed viral videos recall the ads they saw in the content. With viral video becoming more circulated this gives online marketers a unique platform to sales. In addition to recalling those videos, the study found that 25.7% pay more attention to the ads in online content.

Sounds as if more advertisers should be creating viral video, right? Maybe not yet.

The study also indicates that ad placement in online video is not popular, merely accommodated. More than 75% of study respondents said they found ads in streaming content to be intrusive and more than 60% said the ads were disruptive.

"I suspect that [the quality of ads] is a significant factor, especially since one in four users likes video more than inert online ads,” says Chuck Moran, Manager of Market Research for Burst in a prepared statement.

The key to engaging the audience without alienating them seems to be making the transition to ads from video seamless and to target the ads according to the type of programming being shown.

In a related study, researchers indicate that by the end of the year, user-generated videos could account for 47% of all videos streamed in the U.S. By 2010, 55% of online video content is expected to be user generated. Still, user-generated video will only account for about 15% of total revenues, according to a Screen Digest study.

Tags: online video, online video advertising, streaming video

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