Chart of the Week: Video Advertising Boosts Ecommerce Sales?

Some 80 percent of online, network video viewers said they do not mind watching pre-roll video ads along with free streaming television shows. And, 42 percent of consumers said they purchased from brands that advertised on their favorite streaming television shows, potentially making video ads a sales-boosting media for online merchants.

According to the study from Knowledge Networks, consumers are quite willing to watch ads in exchange for free television programming on network websites.

Watch An Ad, See A Video

“Eighty percent of network video downloaders favor watching ads in exchange for free video – up from 67 [percent] in 2006,” stated Knowledge Networks in an official release associated with its How People Use TV’s Web Connections report, part of The Home Technology Monitor. The release went on to say, “69 [percent] of network video streamers either watch the pre-roll ads before the video or listen to those ads while doing something else on the computer.”

“Streamers and downloaders particularly value the ability to watch full episodes of TV shows via the Internet, and both groups accept the idea of ad-supported access,” said David Tice, Vice President and director of The Home Technology Monitor. “Our research shows that downloaders are increasingly seeing advertising as an acceptable compromise for obtaining free network video; and while many streamers try to avoid pre-roll ads in some fashion, a surprising percentage is still exposed in one way or another.”

The point of interest for ecommerce merchants is the 42 percent of respondents who said they made purchases from brands advertised on their favorite online shows. This is a strong indicator that promoting online stores in pre-roll video advertising could increase sales. But, whether the boost in sales is worth the expense of the ads is still an open question.

PEC Staff

PEC Staff

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