Study: Users Don’t Want Ads on UGC

A new study from Ipsos MediaCT reveals that viewers aren’t too keen on the notion of ads in UGC video — even if it’s free. They don’t mind ads in long-form content, and are even tolerant of them in short content like music videos and news clips. But with the majority of digital video consumers against them, this anti-ad sentiment is another blow to anyone hoping to make money off of UGC vids.

The prospect of UGC advertising video has already come under fire lately. The Diffusion Group recently found that UGC video will only account for 4 percent of online video revenue for the next five years. That same study predicted that CPMs for UGC vids would grow at a paltry rate compared with professional content.

This doesn’t bode well for UGC haven YouTube, which is only monetizing 3 percent of its video library and is considering reversing its stand against pre-roll advertising to generate revenue.