Consumers view ads as necessary trade-off for Web 2.0

November 18, 2008

As more and more consumers use digital content services — such as social networking and videos — they're more willing to accept advertising if it means the services have no fee.

That was one of the findings of an IBM survey of 2,800 people in six countries — Australia, Germany, India, Japan, the U.K. and the U. S. More than 70 percent of respondents said they preferred the ad-supported model to paying a fee for the services.

Compared to a similar survey done last year, twice as many people are using digital content services: 60 percent use social networking and 40 percent have Internet data plans for mobile devices such as cellular phones.

Other highlights of the survey are:

-- 76 percent of consumers have watched video on their PC, up 27 percent from last year.
-- Of those who have watched videos on their PC, 45 percent are doing so regularly -- at least a few times per month.
-- 32 percent indicated they have watched video on a portable device or mobile phone, up 45 percent from last year.
-- More than half of respondents who have watched online video claim they watch slightly less (15 percent) to significantly less (36 percent) television as a result.
-- The 13-24 year old segment owns an average of four to five multimedia devices.

"Consumers have grown accustomed to accessing new forms of content through alternative sources, such as online video and video-on-demand, at no cost to them — no fee, with very limited advertising shown," said Saul Berman, Global Lead Partner, Strategy & Change Consulting, IBM Global Business Services and the author of many recent IBM studies. "The industry must find appealing ways to monetize new content sources or risk a similar fate as that of the music industry where value shifted away from core players."

Provided by IBM

Explore further: FCC: AT&T, Verizon shouldn't exempt own apps from data caps

Related Stories

Video: Can I still eat this?

November 29, 2016

An estimated 133 billion pounds of food gets thrown out every year in the United States, so understanding when your food goes bad is important to help reduce waste. Unfortunately, consumers can't just check the expiration ...

How a Trump administration could shape the internet

December 2, 2016

Under a President Donald Trump, cable and phone companies could gain new power to influence what you do and what you watch online—not to mention how much privacy you have while you're at it.

Tech firms aim to be video gateways

November 8, 2016

Facebook and Snapchat have overtaken the home pages of Yahoo and Google as the front door to the Internet for hundreds of millions of people. Now, the two rivals are pursuing a much bigger challenge: surpassing television ...

Recommended for you

Swiss unveil stratospheric solar plane

December 7, 2016

Just months after two Swiss pilots completed a historic round-the-world trip in a Sun-powered plane, another Swiss adventurer on Wednesday unveiled a solar plane aimed at reaching the stratosphere.

Solar panels repay their energy 'debt': study

December 6, 2016

The climate-friendly electricity generated by solar panels in the past 40 years has all but cancelled out the polluting energy used to produce them, a study said Tuesday.

Wall-jumping robot is most vertically agile ever built

December 6, 2016

Roboticists at UC Berkeley have designed a small robot that can leap into the air and then spring off a wall, or perform multiple vertical jumps in a row, resulting in the highest robotic vertical jumping agility ever recorded. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.