Interesting Yahoo Online Study Findings

The Appetizer

Yahoo financed a studay on the viewing habits of online video viewers with the assistance of Interpret LLC.  The findings showed that online viewereship in the afternoon is just as high as evening usage from viewers.  In addition, the study also had a focus on ad interaction by users on  what they define as ‘high-engagement video’ (ie-professionally shot, popular tv shows) vs ‘low-engagement video’ (user-generated). The study clearly showed that high-engagement video’s percentage of user interaction with the advertisements was always higher, usually twice as high as low-engagments.

The Main Course

The Dessert

The article focused primarily on the daypart findings, which, while it is extremely important because it shows the increasing reliance of online video usage by consumers, was not the area that stuck out the most in my opinion.  What did was the high vs low engagement studies.  Two competing companies come to mind in regards to online video:  Hulu vs. You Tube.  The branding of the two is very different.  When you think Hulu, you think professional, high quality programming that you can see on television.  You Tube– not so much.  Much more video options, but  it is not known for quality over quantity, but the opposite.  And while the number still show You Tube as the reigning champion, it does not oveshadow the fast pace that Hulu has caught up with You Tube to be a formidable competitor.  In addition, it, from a business standpoint, begs the question of which one will ultimately be more profitable based off the study Yahoo released.  You Tube was sold to Google because of its lack of profitablillty, and is still working to turn that around.  Hulu, while launched with a similar model initially, due to the type of content and partnerships it had from the beginning, has made it a much easier for the company to evolve its business model, and that is primarily because it relies on high enagagement video.  Users expect it, and clearly show they want it.  From an advertiser perspective, the high-engagement, and branding, not only shows which forms of videos work best for them, but ultimately the type of viewers, content, and sites, will give them the best return as well.  So in essence, as online video continues to evolve, expect for high-engagement video to gradually continue to take center stage, along with the companies that offer it.

The Overall Meal

4 Stars!

The Doggybag

Do you think that the interest from major companies in ‘low engagement’ video is going to drastically decrease in lieu of studies such as these?

Please place your response below.

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