Buoyed by the OPA study that proclaims, "Online viewing has become a routine practice for many internet users," broadband has finally reached its inflection point. The findings derived by the OPA's Online Video Viewing Study confirm that the maturing viewing habits of the medium's users should contribute to a powerful market response.
Five findings in particular will contribute to driving the market's response.
First is the finding of online video viewing becoming "routine." With more than 69 percent of the respondents having viewed online video, it's clear that the medium is no longer just a fad.
Second, the demographic (18-49) routinely viewing online video is the most attractive to the largest advertisers. The study concluded that the median age for the heaviest users is 33 years old: squarely in the middle of the advertiser's most attractive age range.
Third, respondents were adamant that the most exciting content online is "originally produced." With new, original content now flowing into the medium, not only will the viewers have more high-quality video to watch, but it will also attract new viewers to the medium. This is a trend that drove both the broadcast business as well as cable to success in the early years.
Fourth, the OPA study confirmed the virtues of online video as a branding medium. Viewers responded to the advertising by clicking through to visit the advertiser's site (31 percent) and less so to purchase product (8 percent). By both measures, online video is producing results that will surely compel advertisers toward new or accelerated participation.
Lastly, the study concluded that all ad formats work, though it's suggested that the shorter the video ad unit, the better. For too long, the online video industry has bashed the 30-second spot. Now, with numbers to support, we have evidence to suggest that users respond to all messaging. Even spots longer than 30 seconds have had impact. It is far too early to put the 30-second spot to pasture, especially given the conclusion of the OPA's study. With more original content and accurate targeting systems now on the market, viewer tolerance will only become more forgiving.
We see this market response from our biggest advertiser, Procter & Gamble. P&G has continued to use broadband in a growing manner with more and more brands. Furthermore, P&G has deployed both 15-second and 30-second video creative and has cited success branding their products with greater and greater efficiency. As a result, their budgets have doubled each year for the past three years.
The OPA's findings are important -- if not a true landmark -- for instructing a market that will now meet its inflection point. For online video, the future is now.