IBM Institute for Business Value has released its findings in a new survey of consumer digital media usage in the U.S., U.K, Germany, Japan and Australia.

It contains some very useful data about the current and future demand for non-broadcast media viewing, especially PC- and mobile-based video consumption.

The study found that Australian consumers spend more time online for personal use (that is, non-work and non-task related activity) than watching television; 75% of users spend 4 hours or more online, compared to 59% of users watching the same amount of television.


Internet vs TV Consumption


The report also highlights the growing demand for access to video-based entertainment products via PC or portable/mobile devices.


Non-TV video consumption

Despite some reports in the press proclaiming the research showed the end of advertising as we know it (hence the title of this post), the data around consumer expectations and preference for ad-supported media was not surprising.

Banner and contextual ads were the least annoying form of advertising, while video adverts (including video ads inserted in video content) were the most annoying. The majority confirmed their acceptance of watching advertising as a suitable trade-off for access to content – providing the content was both free and high quality (68% in the online environment, 54% in the mobile environment). Still, a significant portion indicated they would pay subscription fees to be able to access content in an ad-free environment (26% in the online environment, 8% in the mobile environment).

My initial read of the differences with respect to willingness to pay for ad-free content in the online and mobile spaces is that mobile consumers believe that mobile service providers extract enough value from their customers (in the form of monthly service fees and data tariffs) to underwrite the provision of content, and object to paying further fees to provide additional underwriting of content offerings.