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Press release from Business Wire

New Research from AOL Reveals Ads in Short-Form Video Content Are Most Effective in Reaching Consumers

<p class='bwalignc'> <i>Data Shows That Ads in Short-Form Content Drive Higher Recall, Brand Affinity and Purchase Intent Than Those in Long-Form Content</i> </p>

Monday, December 17, 2012

New Research from AOL Reveals Ads in Short-Form Video Content Are Most Effective in Reaching Consumers09:00 EST Monday, December 17, 2012 NEW YORK (Business Wire) -- AOL Inc. (NYSE: AOL) today released a new study designed to provide insight into how consumers perceive ads within both long- and short-form premium video content. In contrast to much of the prior research on this topic, the study found that ads in short-form content actually produce significantly higher recall, brand affinity and purchase intent than those in long-form content. Conducted by Qualvu, the study utilized both quantitative and qualitative methods to gauge consumer perception toward the ads, which were presented in their traditional online video environments. The short-form videos featured pre-roll ads, while the long-form videos – defined as those that were more than 10 minutes in length – featured pre- and mid-roll ads. The study was administered to more than 800 respondents who watch online video on a weekly basis. Additional findings from the research study include: Ads in short-form videos are more effective than ads in long-form content. More specifically, short-form video produced a 25 percent higher brand recalland a 42 percent higher purchase intent for the featured product or service. Viewers are adopting traditional avoidance behaviors during ads within long-form videos. Respondents found the ads to be too frequent and interruptive; as a result, they chose to avoid them altogether (by walking away, going to other sites, multitasking with their phone). This is the same “annoyance” behavior that is demonstrated when viewing television without the use of a DVR. Consumers want more targeted and humorous ads in both formats. In fact, 67 percent of respondents would be willing to be answer a question to make their ads more personalized and enjoyable. Consumers understand the exchange of free content for advertising, but they want to make sure their time tradeoff of watching ads also benefits them. They found coupons, contests and links as the most positive forms of engagement. “Consumption habits are evolving rapidly, and we're seeing consumers display many of the same ad avoidance tendencies online than they do with TV,” said Ran Harnevo, senior vice president of The AOL On Network. “Our hope is that this research will help advertisers optimize their ad mix for maximum effectiveness and ROI in the face of changing behavior online. "By showing the efficacy of advertising married with short form premium video content, this study sends a message to marketers that they should adjust their spend mix and allocation when it comes to online video," said Charles Gabriel, vice president of sales for The AOL On Network. "And, this highlights that there are scalable alternatives to the TV network's digital extensions that cannot be accessed by third party ad networks." For the full results of this study, visit http://advertising.aol.com/shortformvideo. About AOL AOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a world-class collection of premium brands, AOL creates original content that engages audiences on a local and global scale. We help marketers connect with these audiences through effective and engaging digital advertising solutions. AOL Inc.Mandy Albers, 212-206-4425mandy.albers@teamaol.com