Is Online Video Sustainable?

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The question is quite straightforward. Given the new ‘business model’ of ‘ad-supported’ is online video a sustainable space and as a marketer, should you be looking at the online video space as a possible advertising platform? Let’s see.
With new media we have a new business model that dictates that all content should be completely free of cost to the consumer and if need be supported by advertising. A study by eMarketer indicates how this model has been molded by consumer preferences as most consumers are extremely unwilling to pay to access content.
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But that’s not the only problem. The study finds that consumers are not only opposed to a pay-per-view model or a subscription model but are also increasingly finding advertising in videos to be highly intrusive and think that it detracts from the overall experience.
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However, online video advertising continues to grow exponentially with complete disregard for the return on investment. With consumers becoming increasingly averse to the ad-supported model (for online video) this raises doubts about whether online video is a good platform for marketers, and since it seemingly isn’t, this raises concerns about the sustainability of online video.

Cameron Olthuis

Cameron Olthuis

Cameron Olthuis

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