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Viewers Love Short-Form Video, But No Ads Please

Written by Ryan Lawler
Friday, July 25. 2008 at 04:45 PM EDT 3 comments
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Two studies released this week highlight a quandary that online video share sites face -- short-form video is extremely popular, but most users say tacking advertising onto it is "not reasonable."

In a study sponsored by Metacafe, research firm Frank N. Magid Associates found that short-form categories dominate as the most popular varieties of online video.

The study reported that 50 percent of all respondents watch online videos weekly, and 11 percent watch online video daily. This viewership also appears to come at the expense of traditional TV watching, as 28 percent reported that they watch less TV as a result of increased online viewership.

Michelle Cox, director of corporate communications at Metacafe, says the report shows online video is mainstream. "With 50 percent of people watching video online, it's no longer just about young males -- it's about everyone."

The report also found that the most commonly viewed forms of online video were all short form: comedy/jokes/bloopers (37 percent), music videos (36 percent), video shot and uploaded by consumers (33 percent), news stories (31 percent), and movie previews (28 percent).

While that is a positive for sites like Metacafe, YouTube, Dailymotion, and other sites that rely on short-form, mostly user-uploaded or user-generated content, another study issued the same day reports that online video viewers don't think that embedding advertising in an amateur or homemade video clip is a reasonable practice.

The study, conducted by Ipsos MediaCT, found that, for the most part, viewers are willing to view ads when watching free, premium online video.

Eighty-two percent of survey respondents said it was reasonable to have advertising embedded in full-length TV shows, while 75 percent said the same of full-length movies. Respondents were also accepting of ads running with music videos (68 percent), short news or sports clips (63 percent), and movie/TV trailers or previews (62 percent). The one exception was "amateur or homemade video clips," in which 52 percent of respondents said it was "not reasonable" to embed ads.

Source: Ipsos MediaCT
Source: Ipsos MediaCT

Adam Wright, director of Ipsos MediaCT, says it's not surprising that viewers would be more accepting of certain types of premium content than others.

"When you think about what the traditional ways they could see that content are -- they would have to pay for it, or if it is free, they have to sit through some sort of advertising. The expectation is there already," Wright says.

The question is how sites that depend on amateur or semi-professional short-form video should then monetize that content. Metacafe's Cox says it's important to determine what type of advertising matches up well with what type of content.

"A 30-second pre-roll against a 90-second video clip with no promise of quality doesn't work," Cox says. "As an industry we need to get better about putting the right advertising against the right content."

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Comments
Thanks for the research, but...
Beau Chatham

Rank: Pasha

Friday August 22, 2008 5:40:23 PM
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Ryan,

I wanted to thank you for the research you provided us on both of the studies you cited in this article.  When I read both of the articles in their entirety, however; it became apparent that you have generalized the choice of "no ads please" to all viewers of short form video.  As I understand it, we would only be talking about 1/3 of viewers in this comparative statement.  

In the scientific community, when study conclusions are derived from comparing two different endpoints from two different study populations, you are usually labeled a shill.  I don't see you selling anything here, but wonder what the point of your story is now?  Or is that what you call in the business "A hook?"

  

Re: Thanks for the research, but...
Ryan Lawler

Staff

Monday August 25, 2008 11:00:10 AM
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Beau - You're right, of course. I'm comparing two separate studies and two separate conclusions. However, I find the contrast startling. One study states that viewers have a great interest UGC, which I think is pretty well documented. It's interesting though, that in the second study users say they're not interested in seeing ads against that content.

If you were running a UGC site, what would your key takeaway be?

Re: Thanks for the research, but...
Beau Chatham

Rank: Pasha

Monday August 25, 2008 1:31:56 PM
no ratings

Ryan,

Thanks for the opportunity to continue the dialogue.  The critical point you were driving is very relevant, but also very specific.  As I understand it, Adam Wright points out in the MOTION study, "the one content type that may be the exception is amateur video content. Just over half (52%) of consumers age 12+ who have downloaded or streamed a video online say they would find it “not reasonable” to have advertising embedded within free amateur or homemade video offerings online." So, for accuracy's sake, a headline could read "Majority say NOT to UGC Ads!"  I took issue with you including professionally produced content like music videos into the short form group.  As you know, there is a two-thirds acceptance to ads here.

The subject mater, however; is fascinating, as this situation actually cuts both ways.  Not only do the UGC creators say "No ads please", but major advertisers are concerned about their placements.  In the July 9th Wall Street Journal, Kevin Delaney pointed out, 

"Most advertisers are still testing the waters on YouTube," says Sean Muzzy, media director at Neo@Ogilvy, a digital ad agency owned by WPP Group's Ogilvy & Mather. Some big advertisers, he says, haven't been comfortable that their ads might appear next to amateur videos. Google Chief Executive Officer Eric Schmidt has acknowledged that the company hasn't yet found the best formats for video advertising." 

If I was running my own site (backed by investors that expect a return) that catered to the "home-made mash-up", I believe a reasonable takeaway or founding principle would be this:

"UGC and Mad Men...can't we all just get along?"  

It is my belief, as syndication models continue to emerge as a viable new frontier in web advertising, that the walls of opposition to online commercialization will crumble when the revenue is shared between the "interruptor" and the "inconvenienced." Or maybe, just maybe, we could opt-in for specific type of advertising for our amateur content.  The best ads I could envision would be for content to be matched for relevancy.  I would love to see "Dude crashes skateboard into side of house", brought to you by Memorial Hospital."  Yep, I'd pay to see that!

 

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