A new OPA study signals high times for online video. Meanwhile Jupitermedia sells its research division; NPR goes mobile and new data on email surfaces. Check out our week in review. Not that wee need research to verify the fact that people are tuning into online video more than ever, but the Online Publishers Association (OPA) has just released a study that says video viewing online has reached the point where it is "a routine practice" for many internet users.
According to the study, 24 percent of internet users access video at least once a week, while 46 percent watch video at least once a month. News leads the way in frequency of viewing, with 27 percent of online video viewers watching at least once a week, followed closely by funny videos (26 percent watch at least once a week).
Not surprisingly, online video viewing is very common at home (39 percent of those with home internet access watch at least once a week) compared to 19 percent of those who watch at least once a week at work.
Much like general web surfing, when it comes to finding the videos they watch, internet users often rely on a handful of specific sites. OPA says that half of all video viewers go to a specific site to find video, and a majority of video viewers (58 percent) say they rely on two to five sites. Another popular way to find video is through random surfing, which is done by 48 percent of video viewers.
More importantly, 66 percent of video viewers have watched online video ads, and 44 percent of those have taken action on what they've seen. Visiting a website ranks highest at 31 percent, while eight percent are actually driven to make a purchase. Video ad watchers generally prefer short ads. However, 39 percent said they would watch ads lasting longer than 30 seconds.
Of course, when we talk about online video, we're really talking broadband, so it's worth mentioning that according to the latest data from Nielsen//NetRatings nearly 68 percent of active internet users in the U.S. had access to broadband as of February. The number of active at-home broadband users increased 28 percent-- from 74.3 million in February 2005 to 95.5 million February 2006.
Put these two studies together, and it's natural that giant print news sources, such as The New York Times and Forbes, have begun running video reports from their reporters.
NYT and Forbes are ahead of the curve, however. Most websites still don't seem to have the wherewithal to satisfy the online video viewing public. Take for example, the NCAA tournament on CBS. The great news is that media buyers were so impressed with the results of their sponsorships that they're already buying up next year's. The bad news is that CBS greatly underestimated consumer demand.
The site capped the number of simultaneous streams at 260,000, even though 1.4 million people registered in advance for March Madness on Demand, so on March 16, some 120,000 people were placed in a waiting cue to view the game.
But, Rome wasn't built in a day, so I'm guessing by next year the bandwidth supply will match demand.
In other news, Google surprised its competitors with the beta launch of Google Finance, which compiles stock information and financial news. The ratings are even more surprising. According to Hitwise, Google Finance ranked at number 28 in the Business Information category for the week ending March 25, 2006, its first week online.
Yahoo! Finance dominates the Business Information category with 31.9 percent market share of category visits for that week. While Google Finance's share was only a fraction of that at 0.53 percent, Google has done little to promote the site in its first week online.
Click here to continue reading this article by Masha Geller, editor at Large, iMedia Communications.