For access to the young, the rich and the educated, advertisers
should look to broadband video, according to a Nielsen Analytics
report released today.
Larry Gerbrandt, head of Nielsen Analytics, along with Scarborough Research, published “Whatever, Whenever, Wherever: How Broadband is Redefining
the Economics of Television.”
Gerbrandt’s report states that Americans with access to broadband
video are younger, richer and more educated than the rest of the
Of all U.S. adults, almost a quarter (24 percent) have a college degree
or greater. But the number increases to 35 percent among adults with broadband Internet access at home. And while only 17 percent of American consumers have an annual household income of $100,000 or more, that wealthy contingent accounts for fully 28 percent of those with broadband connectivity.
They’re young, too. The 18-to-34 demographic represents 34 percent of those with broadband connectivity in their households, and the 35-to-54 demographic makes up 45 percent of those with home broadband access.
The broadband set’s potent combination has led companies to rest their existence on monetizing online video.
Gotuit Media, with investments in video for
mobile devices, on-demand cable and video search, is one such company. President
Mark Pascarella called online video a “billion dollar opportunity.”
During a conference call with investors yesterday, Yahoo’s CEO Terry
Semel was more circumspect. He said video advertising was still in
its “early days,” and suggested that a lot of learning remained. He eventually recognized the medium as a “big opportunity.”
Nielsen’s Gerbrandt is a little more optimistic.
“Advertisers and programmers using broadband have a unique advantage
in the increasingly competitive advertising world,” Gerbrandt said in
“Ad models can be customized and managed in a broadband environment,
and interactivity can be embedded into the program in such a way as
to enhance engagement, which does not take viewers away from the
enjoyment of the program.”