Consumers watching more and more TV online

In the last few months, online video as received increased attention spurred by experimental video offerings from the major broadcast companies, as well as increased interest in archived video content in response to the writers strike. By the end of 2007, the number of broadband users who watch full shows online weekly reached 16%; this means online television is becoming a viable opportunity for target audience reach, and a viable alternative to other forms of advertising.  Broadcast companies are slowly but surely increasing the video quality, and experimenting with more and more content available at a time (ABC is currently offering every episode of the first 3 seasons of Lost for free high-quality streaming online).   Also promising for advertisers is research showing younger audiences are more and more likely to accept in-stream advertising.  Studies by BurstMedia point to almost 60% of 18-24 year olds accepting in-stream advertising, up significantly from older age brackets.  Advertising infront of full-form television shows has been evolving as broadcast companies test user receptiveness, with “sponsored by” bumpers, and 15 – 30 second mid-roll breaks.  This will be a quickly growing and evolving space in 2008, and it will be interesting to see if it factors into TV upfront buys.