Consumers Shout “I Want My Online Video”

Video content -- once reserved to restricted distribution and corporate scheduling -- is now
readily available on demand at your favorite Internet web site. The torrent of available video
content online has been met with near insatiable consumer demand and intense advertiser
interest. Burst recently surveyed more than 2,600 online respondents to get a better idea of how
they consume online video, and their perception of advertising placements within it.

Our conclusion: Online video content is in high demand – particularly for

staying informed and being entertained.
• Men 18-34 years are the heaviest viewers of online video content.
• Caution to advertisers: Consumers are leery of in-stream advertising in
video content –many abandon ad-fronted videos altogether.

Online Video Content is Sought Out Widely and Frequently

From College Students To Senior Surfers, Online Video Content Is In Demand
Overall, seven out of ten (72.1%)
respondents view online video content. Frequency of Viewing Online Video
Men are more likely than women to view
online video, 76.6% versus 67.7% 33.7%
respectively. Viewing online video is not Once a day or 17.8%
just the domain of the young. A more 25.4%
13.3%
majority of all age segments watch
online videos – including over half 28.8%
(58.6%) of respondents 65 years and A couple times a 26.0%
w eek 28.1%
older.
Frequency of Viewing Online Video

25.9%

16.9%
Young, Adult And Male? You Are The 14.4%
Once a w eek
12.4%
Primary Video Audience 8.9%
Nearly three out of five (58.8%)
respondents view online video content 10.0%
A couple of times 17.1%
at least once a week. Men are
a month 17.1%
significantly more likely than women to 21.2% Male 18-24
view online video content at least once a
7.5% Female 18-24
week– 67.6% versus 49.4%,
15.8%
respectively. Once a month
10.7%
Male 25+
17.5% Female 25+
Males 18-34 years are the most
3.1%
frequent consumer of online video Less than once a 8.9%
content - with nearly three-quarters month 6.3%
(74.0%) viewing online video content at 13.3%
least once a week. The true champions
of online video viewership are men 18- % of Respondent Who View Online Video
24 years old. One-third (33.7%) of this
segment watches some type of online Chart 1 –Frequency of Viewing Online Video
video content daily. (Chart 1) Source: Burst Media research, December 2007, n= 1,657

January 2008, Burst Media Corp., All Rights Reserved Page 1

Online Video is a New Medium of its Own
News Clips Rank Highest In Overall Interest. But For The Young Crowd -
Entertainment Rules
Overall, respondents cite news clips (44.4%) as the most popular online video content to view.
This is followed by music (37.5%), comedy (35.5%), movie trailers/advertising (33.7%), TV
shows/clips (33.1%), entertainment news/reviews (29.9 %), sports/sports news (21.8%),
instructional/how-to videos (19.2%), home/user generated video (15.4%), political videos
(15.3%), and cooking video (9.0%).

Significant differences exist between age segments and the types of online video content
consumed. Music videos literally rock with respondents 18-24 years, as over half (53.1%) say
they seek it out online. Music is followed closely comedy video (46.9%), TV show video/clips
(44.4%), and movie trailers/advertising (43.0%). Entertainment is also the most popular
video content viewed by respondents 25-34 years. Beyond the age of 35 years, respondents
clearly make news their leading choice of video content.

Consumers Are Turned Off by In-Stream Ads Like Pre-Roll

Good News: Consumers Remember Seeing In-Stream Ads In Online Video
More than half (53.6%) of online video
viewers recall seeing in-stream (pre, Reaction to In-Stream Advertising
mid, post-roll) advertisements in
content they’ve watched. Interestingly,
the segments with the lowest level of 23.6%
recall are the youngest (18-24 years) 18-24 11.4%
and the oldest (65 years and older) 57.6%
respondents.
37.3%
Advertising placement in online video is
25-34 12.3%
not met with overwhelming consumer
41.6%
approval. In fact, three quarters
(78.4%) of respondents say in-stream
Respondent Age

advertisements in online video are 36.3%

intrusive – and one-half (50.4%) say 35-44 13.4%
advertisements in video content disrupts 42.4%
their web surfing experience. Women
are more likely than men to say 36.2%
advertisements in video content disrupt I stop w atching the
45-54 16.7% v ideo, but stay on
their web surfing experience, 53.1%
43.3% the site
versus 48.1%.
I stop w atching the
38.3% v ideo, and leav e
the site
Bad News: Most Stop Watching 55+ 21.2%
Video Content If An Ad Shows, Or I continue to w atch
37.2%
the v ideo
Worse
Among respondents, one-half (50.7%)
stop watching an online video once they
encounter an in-stream advertisement. % of Res pondents Who Have Se en In-Stre am Ad
Two out of five (43.2%) respondents Chart 2 – Reaction to In-Stream Advertising
Source: Burst Media research, December 2007, n=1,454

January 2008, Burst Media Corp., All Rights Reserved Page 2

 stay to watch the ad and remaining video content. Respondents 18-24 years are the most
tolerant of advertisements included in online video. Among this segment over one-half (57.6%)
will watch an advertisement in an online video and continue to watch the content. (Chart 2)

Ominously, 15.3% of respondents immediately leave the website once they encounter an in-
stream advertisement. Additionally, half (49.7%) of respondents say the presence of in-
stream advertising in online video content makes them less likely to view other video content
they may encounter online.

Mixed News: Disruptive Video Ads Impact of In-Stream Advertising Compared

Don’t Always Make A Lasting to Other Ad Units on Site
Impression
One-third (33.0%) of respondents say
they pay less attention to in-stream
I pay much
video advertisements than they do to
Not sure, 9.5% more attention,
standard creative units on the same I pay
page; and a third (36.1%) say they 7.8% somew hat
pay neither more nor less attention. more attention,
Only one-in-five (21.4%) of 13.6%
respondents who recall advertisements I pay much
in online video content say they pay
less attention,
more attention to the in-steam
24.4%
advertisement than they do to
standard creative units on the same
web page. (Chart 3)
I pay
somew hat less I pay neither
Not surprisingly, the 18-24 years
segment is more receptive to in- attention, 8.6% more nor less
stream video advertisements than all attention, 36.1%
other age segments – with 38.5%
saying they pay more attention to in-
stream video advertisements than they
do to standard creative units.
Chart 3 – Effectiveness of in-stream versus other ad units
Source: Burst Media research, December 2007, n=1,454

How You Can Use This Information

Understand The Mindset Of Video Consumers: Video content is a vast treasure-trove of
information and entertainment for web surfers. It is also a potential advertising treasure trove for
marketers. However, marketers must tread carefully as they weed their way through the video
content advertising forest. Online video consumers are not yet willing to exchange their
uninterrupted viewing experience for advertising messages. For online video advertising to be
truly effective, advertisers need to use approaches that fit this consumer mindset. Using shorter
spots distinct from offline creative is one way of capturing consumers’ attention; and garnering
greater consumer acceptance of advertising placements within online video content.

January 2008, Burst Media Corp., All Rights Reserved Page 3

Burst Sites for the Entertainment Fan
Burst is always adding quality, content-rich sites to its networks. All sites are subject to a
rigorous screening process before being accepted into our networks. Burst also periodically
reviews sites to ensure they continue to meet our standards. Our continuous auditing process
guarantees your advertising message is placed in a high quality content environment, and
receives the maximum exposure it deserves. Below are some of the many interesting Burst sites
that reach entertainment fans.

Finetune is a new kind of online music service with a unique combination of

features: enter an artist name and listen to a playlist of related artists
personalized for you. Finetune is led by music fans, who developed Finetune
because they wanted a music service that combines the features music lovers would want and is
easy-to-use. Finetune boasts a comprehensive music library of almost 2 million tracks and
growing. The best thing about Finetune is that you can create your own playlist from their vast
music library, listen, and share with others! Explore the Finetune community -- browse, listen,
create a profile, tag, connect with other users and more.

VideoJug hosts one of the world's largest, most all-

encompassing libraries of factual video content online.
VideoJug’s professionally-produced, high definition video
content covers every conceivable topic and delivers the
definitive online "encyclopedia of life". The content is
divided into a variety of formats that include informative "How To" and "Ask The Expert" films
that take users, step-by-step through everything from the lighter, more welcome aspects of life
(leisure, hobbies, beauty and style) to the more serious tribulations we all face in day-to-day life
(health, legal, money, parenting). No matter who you are, no matter what your problem may be,
VideoJug is here to help, inform and inspire.

Reality TV World is the Internet's leading resource for

reality television news and information. Providing
coverage of nearly 300 reality television programs,
Reality TV World has been featured and cited by countless print, electronic, and online media.
Realty TV World provides all the information a reality TV fan needs to be well informed, including;
episode summaries, people news, ratings and scheduling news, show updates and spoiler news.
Much like unscripted programming itself, Reality TV World visitors are typically from highly
desirable advertising demographics.

Burst Content Channels Get To Men Who View Online Video

Reaching men with an engaging advertising message is the objective of many advertisers’ media
plans. The challenge for advertisers is reaching this attractive segment broadly, with cutting
edge creative and within quality content. To help marketers reach men, Burst offers numerous
rich media creative units including in-banner video, as well as a number of engaging content
channels that draw an audience saturated with this important and attractive target. (Chart 4)

January 2008, Burst Media Corp., All Rights Reserved Page 4

 9 Burst’s College and Young Adult Channel is a collection of web sites with content focused
on topics college students and young adults enjoy and seek out. Topics covered in the
channel range from entertainment news and games, to academic and career information.
Channel visitors purchase products
online – with three-out-of-five Composition Index - Men 18+ Who Watched
(60.5%) saying they do so. Also, Video Content Online in Past Week
over one-half (53.6%) say the
Internet is their primary source for
information on products and HEAVY.COM 158
services they plan on purchasing.
Burst College and Young Adults 154
9 Burst’s Science Channel provides
information on a variety of Burst Science 148
different technical disciplines
including agriculture, biology, and
MySpace Videos 147
engineering. During the past
month, half (50.8%) of channel
visitors went to the movies, and Burst New s & Information 145
41.9% purchased a music CD.
Over half (55.2%) of channel Burst Music 143
visitors say they shop online.
Burst Men 141
9 Burst’s News & Information
Channel provides local and
Gorilla Nation Media 117
international reporting as well as
other forms of opinion and editorial
features. Half (53.6%) of channel Advertising.com 103
visitors either research or manage
their investments/personal EA Online Games 84
finances online. Three out of five
(59.3%) channel visitors say the Com position Index
Internet is their primary source of
information for products they are Chart 4 – Male 18+, Viewed Online Video in Past 7 Days
considering to purchase. Source: comScore Media Metrix, Plan Metrix – Winter Release 2007

9 Burst’s Music Channel provides information, not only on bands, artists and concerts, but
also on instruments and sheet music. More than half (54.9%) of channel visitors shop
online. During the past month, half (53.9%) of channel visitors say they purchased a
music CD, and 56.4% went to the movies.

9 Burst’s Men's Channel is a collection of web sites with content focused on topics men enjoy
and seek out. Topics covered in the channel range from money and careers to health and
sports. More than two-thirds (70.4%) of visitors to the Burst Men's Channel shopped
online in the past six months. Also, three out of five (59.5%) channel visitors say the
Internet is their primary source of information on products they are considering to
purchase.

January 2008, Burst Media Corp., All Rights Reserved Page 5

About Burst Media
An online media and technology company founded in 1995, Burst Media (www.burstmedia.com) is
a leading provider of advertising representation, services and technology to independent Web
Publishers. Burst Media levels the playing field for independent web publishers and allows
advertisers to reach finely segmented, engaged consumers — in a clutter-free environment —
through an extensive number of interest-based sub-channels. The company represents the
broadest and deepest number of interest-based Web sites online through its two premier Ad
Networks.
Delivers customized advertising solutions to
brand advertiser looking to reach targeted
audiences in a quality and engaging
environment.

Simplifies placing direct response campaigns in

front of the most appropriate targets to trigger
consumer action and achieve campaign
performance objective.

Burst also markets its ad management platform, AdConductor ™, which empowers content web
sites, online ad networks, and web portals to manage the complete process of ad sales and
service. Burst Media is headquartered in Burlington, Massachusetts, with offices throughout the
United States and in London, UK. For more information, visit www.burstmedia.com or call
781.272.5544.

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© 2007 Burst Media Corporation, All Rights Reserved

January 2008, Burst Media Corp., All Rights Reserved Page 6