Average US Internet Home Watches Nearly 4 Hours of Video Weekly, Says Parks

U.S. broadband homes watch an average 3.8 hours of internet video on TV each week, a fifth of all video viewed on TV, said a Parks Associates report Wednesday. Consumers might increasingly use advertising-blocking technology while streaming video if digital ads disrupt the viewing experience, Parks warned. "Ad blockers have their roots in web publishing, often to prevent full-page overlays or popups that would disrupt the experience,” said Parks analyst Glenn Hower. Content and over-the-top providers and advertisers “need to ensure their methods do not interfere with the viewing experience, which would otherwise drive viewers to ad-blocking technologies,” he said. Growth in personalized OTT service offerings, automated media buying and selling, and advertising in low-income markets have driven greater interest in dynamic ad insertion, said Parks, which forecasts digital video ad revenue will jump from $14.4 billion worldwide this year to $28.9 billion in 2020. Ad blocking, meanwhile, cost the digital publishing industries an estimated $41.4 billion worldwide in 2015, Parks said, at the same time the number of OTT video services tripled from 2010. "Connecting advertisers with appropriate, and accepting, audiences is a significant challenge for ad-supported video providers," Hower said. There are opportunities for more meaningful ads with better response and overall brand retention, he said.