SURVEY: Users of File-Sharing Networks Don’t Mind Ads for Free Content

With 74% of internet users saying they wouldn’t mind viewing ads in return for free content, and 83% saying they would like a company who did so even more, record labels and advertisers may just find a legit use for P2P and file-sharing networks after all.

A few days back it was reported how Sprint paid to have its logo embedded on copies of tracks from the hip-hop artist "Plies" which were then distributed on P2P and file-sharing networks for people to download for free.

Once the Sprint logo is embedded, it will be attached to the files forever and will be displayed alongside Plies’ name and the song title on whatever platform the track is played on.

A total of 16 million tracks by the artist were to be distributed and essentially represent a new form of advertising for Sprint, the record label, and the artist involved.

Sprint’s director for digital marketing, Ted Moran, said that "…part of the reason for doing the deal was to spread the word about the company’s music-related initiatives, which include the Sprint Music Store and the availability of online radio station Pandora.com on its phones."

In the future Sprint may not be alone in seeking out usually illegal P2P and file-sharing networks for advertising purposes with the results of a recent survey indicating that 74% of internet users are receptive to viewing advertisements in exchange for free or discounted downloads.

In fact, 83% would even have a more positive opinion of advertisers who offered free downloads in exchange for viewing ads. I know I would.

Moreover, the research, conducted by InfoSurv, Inc., strongly suggests that there is an opportunity for advertisers to reach internet users at the point of consumption, by sponsoring free downloads on P2P and file-sharing networks.

"When consumers search for media files – such as songs, videos or games – in P2P networks, they’re looking for instant access to today’s most popular titles," said Andy Cooper, co-founder and SVP of INTENT MediaWorks.

"When consumers find the files they are looking for, they share files with friends through P2P, personal blog posts, adding the files to their social networking pages, or send them via email, text or IM. If advertisers sponsor that content, their programs can reach consumers across multiple Internet channels from one source."

When it comes to paying for files versus downloading them illegally, the survey found that more than 75% of respondents were willing to pay for content downloaded from P2P networks in order to own a legal copy of the file (including music, videos and games) – suggesting new opportunities for legal content owners and advertisers alike to distribute and monetize content with P2P.

Now this part of the survey I disagree with because I think that many use P2P and file-sharing networks for one thing – FREE CONTENT! Listening to or viewing an ad in exchange for a free, legal download is one thing but, paying for it is quite another.

In fact, the survey confirms this by noting that 73% of respondents are willing to watch general advertising during the download process in order to obtain the content legally either for free or at a reduced price. Additionally, 63% are willing to provide personal information – such as age, gender and zip code – in order to receive free downloads. More than 83% would have a more positive opinion of advertisers who made it possible for consumers to get "free and legal" copies of the files they are searching for in P2P.

"There are currently more than 80 million U.S. Internet users that search and download files from P2P networks each month, 10 million or more at any one time," adds Cooper.

"With more than 70 percent of P2P users between the ages of 16 and 34, there is significant opportunity for advertisers to reach teens and young adults through this channel, by providing free or discounted download opportunities for legal, licensed content."

I think that although the survey is sort of flawed, as I tend to not trust online surveys, especially those of only 1,000 people as was the case here, I think its conclusion is true – that consumers wouldn’t mind a bit of advertising if it meant they could receive free or discounted content in return.

Moreover, I think we can expect to see an enormous growth in P2P and file-sharing network advertising in forms similar to Sprint’s, where a company sponsors a download in return for embedding its logo or some other form of brand recognition into a music track or video.

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