Lodestar: Ads more intriguing in a video clip as compared to radio

After identifying the trend of emerging convergence devices that deliver all in one solutions including mobile, camera, gaming, music and video applications, the research conducted by Lodestar Universal explores the kind of content consumers prefer on such devices.

Lodestar Universal questioned the respondents on the kind of entertainment or information that interests them most, as also the kind of platform they prefer to have it on. Respondents were found to be most interested in music with 62 per cent preferring it on music players, closely followed by 53 per cent, who prefer it on cell phones. Music also dominates usage occasions and is preferred at any time from travel, to work, to watching TV, and even shopping.

TV clips and films are, however, preferred to be watched on a laptop over mobile phones and media players. Close to 50 per cent respondents like to watch clips and films on their laptops.

Internet, unsurprisingly, is most popular on laptops, but mobile phones are fast catching up with 46 per cent of the respondents using the web services on their phone. In terms of usage occasions, Internet scores next to music, and is in demand while working, outdoors and at home.

But surprisingly, gaming was not found to be popular with portable gaming devices. Over 40 per cent of the respondents prefer playing games on both laptops and mobile phones and only 30 per cent of them like it on gaming devices.

After assessing the popular content, the research analyses the way users source content. Illegal content is currently satisfying consumers demands, 36 per cent people have downloaded music from peers versus 18 per cent who have paid for it. Indian figures are similar to the global average with 33 per cent people using peer-to-peer service and only 17 per cent paying for it. The US and South Korea are the only countries that resist this trend. They have lower use of peer-to-peer service compared to those who pay for music downloads. This point may demonstrate the global nature of content piracy.

The overall fact is that the demand for content is massive, but whatever is being provided legally is not fulfilling the demand. However, consumers are willing to pay for richer content. When the content is paid, consumers do not tolerate interruptive and invasive formats that appear in the middle of movie clips. Lesser the interruptive the format of the content, the more acceptable it is. 65 per cent of the respondents do not like advertisements that appear in the middle of video clips. But the number reduces to 35 per cent when it comes to ad on radio and audio formats.

However, advertiser funded content offers huge range of opportunities for advertisers. The content offers consumers certain benefits and provides the advertiser chance to move away from the interruptive format of advertising and create engagement. On a scale of 1-5, where 1 denotes not at all interested and 5 is very interested, most respondents rated the following factors close to 3: happy to send SMSs that entitle free entry to an event, receive music downloads, films, music videos and SMSs that entitle them a discount on a product.

Traditional media has high entry costs and have limited geographic reach. If brands create appropriate branded content, providing access to rich media content such as music films and TV shows reaching the consumers could be more engaging than traditional interruptive ways.

Currently, advertising formats on mobile phones and portable technology are most acceptable in the emerging economies. The developed markets, however, show lower levels of acceptability to these formats. On the Advertising Acceptability Index, India is among the top seven countries that are very willing to embrace mobile phones and portable technology advertising formats. Mexico and China lead with a score of close to 8 points. Thailand, Philippines, Malaysia, Brazil and India have equal score of over 7.5 points. The US has the lowest score on acceptability index which is just over 5.5 points. Advertisers can look brightly look forward to emerging economies, including India, to offer appropriate branded content and engage consumers.