New Report: On-Demand Video Advertising

Nate Elliott | March 15, 2007, 07:43 AM

My first major report since taking on the European advertising role is On-Demand Video Advertising: Embracing Consumer Control of Video Content. It combines one of the most pressing questions for advertisers today -- "how do you reach consumers when they're in control of their own media experiences?" -- with a lot of the thinking I was doing for our digital home service around on-demand video. (Jupiter's clients can look for a spin-off report in the European Digital Home service soon.)

The report addresses three key questions:

1. How many Europeans are using on-demand video on TV and the Internet, and how large a part of their total video consumption does on-demand represent?
   
2. How, and to what degree, does on-demand video consumption disrupt advertisers' ability to reach consumers through traditional TV advertising?
   
3. How can advertisers and agencies leverage on-demand video models to better reach key consumers?

The bottom line is that it's still early days for on-demand video -- for both consumers and advertisers. Most Europeans still don't use any on-demand video, and even loyal on-demand users still watch more linear multichannel video than on-demand video. But the heaviest users of on-demand content are valuable, influential consumers -- and they will grow in numbers over the next few years. As such, it's crucial that advertisers and agencies start learning today about the strategies to reach this audience -- both to tap a key niche now, and to prepare for a larger trend in the future. I hope this report will give our clients a head-start in that learning process.

Clients can read the report (and non-clients can get a preview of it) here.