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BizReport : Advertising archives : April 08, 2009

British Internet users realize free means ads

KPMG has published a report that found British Internet users are 'happy' to watch ads online or on their mobile as long as they can get content such as music or video for free.

by Helen Leggatt

Rather than happy, I'd say British Internet users were probably more resigned to seeing ads online if they want free content. In other words, as KPMG's survey discovered, rather than pay for content the majority (60%) will suffer ads. Only 16% of users in the U.K. said they would rather pay for online content than watch ads.

On the go, 40% of consumers said they would watch mobile ads in exchange for access to free music and just over a quarter said they would do so in exchange for free instant messaging. Twenty-one percent said they would pay to avoid ads on their mobile phones.

"This willingness to view adverts in exchange for free content is good news for advertisers and is perhaps a pointer in the ongoing debate over whether advertising or subscription is the right revenue model," said Tudor Aw, a partner at KPMG.

A recent study from Knowledge Networks found that video viewers, too, are coming to the realization that free content will be accompanied by advertising. Among those who downloaded video content, 80% favored watching ads in exchange for free video, up 67% on 2006.

Tags: free content, free video, Knowledge Networks, KPMG, mobile ads, mobile phone, online advertising, video

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