18-24-year-old consumers spend more time watching Web-distributed video than broadcast television. LiveRail's fourth-quarter State of the Industry report was conducted online via social networks such as Facebook and Myspace. Of the over 400 respondents, 53 percent spend more time watching online video than TV, 19 percent watched about the same and 28 percent watched more TV than online video. LiveRail CEO Mark Trefgarne was genuinely surprised by the survey results. "For advertisers seeking to reach this valuable demographic, it's clear that online video is the place to be." Similarly, TV is becoming a medium for an older target audience.

Besides their findings on video watching youth, the report includes projections on the effect of broadband-enabled, "next-generation" television on the future of advertising delivery. Internet-based delivery of video content will support ad-free services similar to Netflix On Demand without peripheral devices. With ad-supported content channels, technology vendors will provide insertion tools to provide dynamic serving and reporting as well as individualized content delivery that advertisers currently use on the Web.

Other highlights of the LiveRail report :

Online video consumption was up forty percent in 2008. Frequent viewers consume an average of 273.1 minutes of online video content per month, up from 195 minutes last year. This is driven by long-form content on Hulu and TV.com.

Video is possibly immune from the advertising slump: video is the top response at 66.8 percent from advertisers for their budget priorities.

The fourth quarter saw unique US online video viewers surge past 125 million (led by YouTube and Hulu) in October 2008 up from 120 million.

Mobile video may be a quickly evolving ad format in 2009. An increasing number of content producers are publishing video libraries on their mobile destination sites. Still in an early growth phase, the success of mobile ad serving products will depend on their ability to integrate with existing workflows.