Consumer research reveals revenue concerns for content providers as Internet video gains larger share of TV viewing time

Parks Associates announced a new research report today showing that U.S. broadband households watch an average of 3.8 hours of Internet video on TV screens each week, accounting for 20% of all video viewed on this device. Tracking Eyeballs: Video Analytics and Measurement warns that consumers might increasingly use ad-blocking solutions while streaming video if the digital advertising methods disrupt their viewing experience. Parks Associates’ digital media analysts advise service providers and media companies that the best defense against these ad blockers is to develop digital advertising models that are integrated and nondisruptive to the viewing experience.

“Many content creators rely on advertising revenue to monetize video, especially as newly launched digital services seek revenue. As digital video viewership increases on all screens, use of ad-blocking technologies is a concern for content owners and distributors,” said Glenn Hower, Research Analyst, Parks Associates. “Ad blockers have their roots in web publishing, often to prevent full-page overlays or popups that would disrupt the experience. As Internet video viewership on the television screen increases, advertisers are seeking to leverage prime living room real estate in this new media model. Content and OTT providers and advertisers need to ensure their methods do not interfere with the viewing experience, which would otherwise drive viewers to ad-blocking technologies.”

Increases in personalized OTT service offerings, automated media buying and selling, and advertising as a necessity in low-income markets have driven greater interest in dynamic ad insertion. Parks Associates forecasts total digital video advertising revenue increasing from $14.4 billion worldwide in 2016 to $28.9 billion in 2020, leading to a five-year CAGR of 15%.

Tracking Eyeballs: Video Analytics and Measurement evaluates current audience metrics tools being implemented in digital video, identifies key players in the audience measurement services industry, and assesses the future for digital video advertising and audience measurement. Additional research from the study includes:

• Ad blocking cost the digital publishing industries an estimated $41.4 billion worldwide in 2015.
• Internet video viewership increased by a five-year CAGR of over 18% from 2010 to 2015.
• The total number of OTT video services has tripled from 2010 to 2015.

“Connecting advertisers with appropriate, and accepting, audiences is a significant challenge for ad-supported video providers,” Hower said. “The reward, however, is more meaningful ad messages to consumers, with greater impact, response, and brand retentions. Another reward is more valuable media inventory for both content and service providers and their advertising partners.”

More information on Parks Associates’Tracking Eyeballs: Video Analytics and Measurement is available at www.parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Holly Sprague at [email protected].

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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