Online Video Streaming on the Rise

In an Interactive Advertising Bureau (IAB) study conducted this year (2013) by the panelists at Nielsen.com, 58% of Americans are now streaming on-line videos, up a staggering 20% from a mere five years ago.

This means there's a shift happening in the way people are absorbing not only media, but also advertisements. The study showed an interesting trend in its sample:

• From Jan 2011-Mar 2012 there was a 22% increase among women in the U.S. streaming videos (45% of total women 18+)
• From Jan 2011-Mar 2012 there was a 5% increase among men in the U.S. streaming videos (55% of total men 18+)

The surge in women streaming videos is probably due to women’s greater involvement in their children’s care, and the growing interest in online shopping as a convenient alternative to driving to the mall. Whatever the reason, as access to online streaming increases, advertisers are focusing more on digital media.

This is not to take away from the power of Television or other advertising mediums; online is simply another medium to reach potential consumers. In fact, online advertising still has yet to prove itself against traditional advertising. Note, too, that the above study was conducted and sponsored "with the financial and intellectural generosity" of Microsoft Advertising and Yahoo (i.e. the study was funded by online search engines who stand to benefit from an increase in online advertising).

Here's a challenge: Name one brand that established themselves only through online ads (unless its an internet-based/online company, like Amazon, eBay, online gambling, etc.). I have yet to think of one... But the brands that established themselves through traditional ads (radio, print, tv, billboards) are everywhere. Pepsi famously cut its traditional advertising two years ago, to focus solely on social media and online ads (to the tune of $50 million USD), and their market share dropped a whopping 5%, moving them from #2 soft drink in sales, to #3--behind Diet Coke. Their market and sales loss is roughly the equivalent of $350 Million USD).

 - Sandro Rocha, PPG

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