People Seek Content Over Email and Instant Messanging On The Internet

While online, most people are watching videos, reading blogs, reviewing freinds Facebook and Myspace pages and viewing other social networking sites like Digg.

A new studied released on August 13, 2007, clearly shows that content account for just under 50% of consumers' online time. Neilsen / Net Ratings, has shown a progressive increase in users' viewing of content from just four years ago. Just 33 percent of time was spent online viewing content in 2003 and most time was sent sending emails and instant messaging. During this point in time, email and instant messaging accounted for 46% of online time. Now these communications account for 33% of online time. Search and e-commerce figures remained relatively stable.

As of August, 2007 search accounts for 5% of online time, up from 3% in 2003. Commerce accounts for 16%, up from 15% in 2003.

The Significance Of Content

The significance of these findings mens that the big Internet media forms, like Yahoo and Google, as well as more traditional companies like News Corp., owners of Myspace, Disney and time Warner will contiue to focus on creating media rich applications for their websites including photos, online video and music.

More and more ad dollars will continue to flow towards the web as more and more users spend a signficant amount of time watching YouTube Videos and sharing Flickr's pictures. Therefore, all of the big search companies inlcuding Google, Microsoft and Yahooo will continue to implement the online ad network presence.

Yahoo purchased online exchange Right Media. Microsft purchased digital ad agency aQuantive and Google is closing the acquisition of DoubleClick.

Reason

The possible primary reason for the increase in demand for content and the decline of communication is that content and communication have become inseparable due to the success of the social networking sites. MySpace and Facebook pages offer there own communication, effectively bypassing traditional E-mail and IM.

The primary question in this industry as is in most is just how effective advertising on Web content can be and how lucrative is the market.

Many companies cannot quite figure out the best way to sell ads on Internet videos and it's a huge challenge considering the ads must be tied to user uploaded videos. Videos that advertisers will be reticent to advertise behind based on the content.

Companies will be focused on figuring out how to advertise on this content as peoples consumption of the content will continue to increase.

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