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This paper presents a statistical analysis of several key factors in H.264/AVC motion estimation, including the relationship between sum of absolute difference and sum of absolute transformed difference (SATD) in macroblock (MB) level, the changes of SATD from full-pixel precision to quarter-pixel precision, and so on. Based on these statistical characteristics, we proved the validity of a fractional motion estimation (FME) mode reduction criterion. During motion estimation, any MBs satisfying this criterion can keep their integer motion estimation best mode until after FME, thus avoiding many costly less probable prediction modes in the FME stage. Simulation results confirm that prediction schemes using this criterion have a very low miss rate in mode determination, FME speed-up is achieved and the peak signal-to-noise ratio drop is almost negligible. [ABSTRACT FROM PUBLISHER]