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.
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.
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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