JupiterResearch said that although on-demand video consumption is still a niche behaviour in Europe, advertisers must develop innovative ways of reaching on-demand consumers.
According to the report, with uptake of DVRs and other on-demand video still low, just 3% of European TV hours were ad skipped in 2006.
Nate Elliott, senior analyst at JupiterResearch, said: “Right now, most Europeans are non-demand consumers rather than on-demand consumers.
“But it would be foolish for advertisers to ignore on-demand. Thanks to online video sites like YouTube and DVR offerings like Sky+, on-demand usage will grow quickly in Europe. This is also a very attractive consumer segment: on-demand users buy more electronics, shop online more often, and influence other consumers’ purchases.”
As on-demand usage grows in Europe, many advertisers are concerned by the spectre of DVR ad skipping. However, the report finds that just one-third of European DVR owners usually skip ads when watching pre-recorded shows, and in 2006 ads were skipped during only 3% of all European TV hours. The report goes on to predict that as DVR usage grows, ad skipping will become a significant problem for advertisers and networks.
Elliott added: “As consumers take more control of their media experience, advertisers must embrace rather than hide from these new formats and technologies.
“Advertisers should treat their videos as content rather than simply ads – producing creative that entertains consumers and making it available on different video sites and for download to different devices. By leveraging users’ desire to consume and share video content when and where they choose, advertisers can convey their brand messages more effectively than ever before.”
Recent research from the Nielsen Company said that US viewers with digital video recorders (DVRs) still watch, on average, two thirds of advertisements (see US DVR Users Still Watch Two Thirds Of Ads).
Meanwhile, research from Informa Telecoms & Media revealed that in 2011, 435 million homes will take video-on-demand (VOD) or near-video-on-demand services, equivalent to 38% of the world’s TV households (see VOD To Be In 435 Million Homes).
Related Links
