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: Amid angst, tech industry innovates

Related Stories

Amid angst, tech industry innovates

January 23, 2017

CES is nearly a week-long party celebrating the tech industry. But in recent years, the annual tech show, held earlier this month, has had a palpable sense of anxiety as much as excitement.

Amazon Alexa virtual assistant shines at tech show

January 6, 2017

Amazon's virtual assistant Alexa is emerging as one of the big winners at this year's Consumer Electronics Show, cropping up in TVs, cars, fridges—you name it—in what may signal a breakthrough moment for the smart technology.

Recommended for you

'Droneboarding' takes off in Latvia

January 22, 2017

Skirted on all sides by snow-clad pine forests, Latvia's remote Lake Ninieris would be the perfect picture of winter tranquility—were it not for the huge drone buzzing like a swarm of angry bees as it zooms above the solid ...

Singapore 2G switchoff highlights digital divide

January 22, 2017

When Singapore pulls the plug on its 2G mobile phone network this year, thousands of people could be stuck without a signal—digital have-nots left behind by the relentless march of technology.

Making AI systems that see the world as humans do

January 19, 2017

A Northwestern University team developed a new computational model that performs at human levels on a standard intelligence test. This work is an important step toward making artificial intelligence systems that see and understand ...

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.