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U.S. Local Online Video Advertising Market to Reach US$1.5 Billion by 2012, According to The Kelsey
SMBs expected to allocate 11.6% of their online budgets to video advertising by 2012, driven in part by compelling consumer adoption and conversion rates.   Princeton, NJ (June 25, 2008) - According to The Kelsey Group's U.S. Local Video Forecast (2007-2012), local online video ad revenues will experience significant growth during the forecast period, increasing from US$10.9 million in 2007 to US$1.5 billion by the end of 2012, representing a compound annual growth rate (CAGR) of 167.8 percent. The firm expects video ad products to command 11.6 percent of the online advertising budgets of small and medium-sized businesses (SMBs) by 2012 (CAGR: 124.5 percent).   Click for details...


Price Trumps Everything For Online Shoppers
WITH UNCERTAINTIES ABOUT THE ECONOMY creeping into more and more holiday purchase decisions, a new survey of online shoppers finds that price trumps all. "Because newer online retailers can focus on market share and revenues and not profitability, they are an emerging threat for brick-and-mortar retailers," said Jason Meugniot, Guidance president and CEO. "Endless.com., for example, can give customers $5 for the privilege of shipping to them overnight. That makes it tough for a brick-and-mortar retailer, which may be generating less than 10% of growth online, to compete."   Click for details...


Video Search & Relevance: Important Bedfellows
As I wrote in last month’s column, video offers enormous opportunity for local SMBs (Small/Mid-sized Businesses) to market online more effectively. Admittedly, some folks differ with that point of view. For example, one commenter wrote that “although the technology exists for businesses to deploy video online, SMBs can’t compete with big brands on creative work.” This person argued that it will take more than lowering the barrier-to-entry cost of video for SMBs to compete with bigger brands. I beg to differ. Why? From what we have seen, successful online video advertising involves more than glitzy, expensively-produced commercials. Successful video ads offer relevant, informative, and authentic content about a brand, product, and service: In short, the type of content that search engines love. Also, SMBs have the mobility, which larger competitors may lack, to optimize and adjust their videos for greater relevance, ultimately making them even better for search engines.   Click for details...


Ad Auto Dollars Driving To Net
WORLDWIDE AUTOMOTIVE ADVERTISING REVENUES WILL stay at the $40 billion level for the next four years, according to a recent survey by a Princeton research group. But the Kelsey Group says there will be a shift among the media for those dollars. One of the few growth areas expected is the Internet, climbing from 5% in 2007 to 13% in 2011. Overall, the Internet will grow 27.5% over four years to $5.3 billion.   Click for details...


Streaming Video Goes to College
Video advocates must continually work with (sometimes reluctant) professors to understand the power of video and to find a simple way to deliver it to students who are using a variety of equipment, software, and internet connection speeds.   It was just a generation ago that a college professor stood in front of the room and talked at a group of students who took notes. Other tools consisted of a blackboard, chalk, and, perhaps if you were really high-tech, an overhead projector. Times have changed, and today’s college lecture halls are often wired for sound and video. The professor may project a PowerPoint presentation, slides under a microscope, or excerpts from a journal article. Some students may come to the lecture hall while others may participate in distance learning and watch a live stream or watch on-demand video of the lecture at their convenience.     Click for details...


Nearly 60% of Consumers Surveyed Watch Online Video
According to The Kelsey Group Increased consumer response to online video is driving the development of cost-effective options for local and small-business advertisers. Princeton, NJ (May 24, 2007) -- In the latest wave of The Kelsey Group’s User View study, 59 percent of those surveyed claimed to watch online video, and more than half said they engage in some sort of response activity, such as visiting a Web site, going to a physical location or making a purchase. The study’s findings are highlighted in a new report by The Kelsey Group titled, “Online Video: A New Local Advertising Paradigm,” which credits the popularity of YouTube with bringing online video watching to mainstream audiences.   Click for details...


HBO Inks YouTube Deal
HBO HAS INKED A DEAL with YouTube to create a channel on the video-sharing site, reports E! The site will air highlights from some of the premium cable net's popular shows, such as "Entourage," "The Wire" and "Extras." It will also include full-length episodes of "In Treatment." No terms were disclosed, but HBO said it gives viewers a legal way to see clips online. Source: Media Daily News     Click for details...


Online Ad Spend by Industry - January 2008 Online Ad Spend by Industry - January 2008 Note: Nielsen Online’s AdRelevance service uses a proprietary methodology for estimating online advertising expenditures and takes into account only image-based technologies and advertising sold per CPM. Above data does not reflect house advertising activity, strategic partnerships between publishers and advertisers, or text units, paid search, sponsorships, email, units contained within applications (e.g., messengers and pre-rolls) or performance-based advertising.   Click for details...


More Data in Support of Streaming Video
Google and AOL teamed up to commission a survey from TNS Media Intelligence, that shows favorable user and advertiser metrics for online video.   This is important to understand because it demonstrates the adoption and expectation of online video for people who are looking for more information about an advertiser's products and services. The trend is steadily moving more and more in favor of online video to help a business separate and differentiate themselves from their competitors in their marketplace. A few high-level data points are:   75% of users watch more online video than they did one year ago, and 52% expect to watch more over the next year. 78% feel online video ads offer as much or more capability than television to learn about an advertiser. 63% say they prefer video advertising in order to keep content free. The survey also measured response rates from online video, coming up with numbers similar to those in TKG's User View (results in past post).  Specifically 64% of the TNS study respondents claimed taking action after viewing online video. 44% went to a Web site, 33% to a search engine, 22% to a physical store, and 21% discussed with friends). This supports something we've said many times... online video combines the traditional strengths of video advertising (entertaining, informative, ability to elicit emotional response), with the direct response capabilities of the internet.   Copyright - The Kelsey group. All Rights Reserved.   Click for details...


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Clinton Outspent By Obama Online
HILLARY CLINTON'S CAMPAIGN CAME UNDER fire for spending extravagantly after disclosing it had dished out $25,000 for luxury rooms at the Bellagio in Las Vegas and $100,000 on party platters in Iowa, among other expenses last month. But in spending on online social media and advertising, Clinton was easily outstripped by Democratic rival Barack Obama. Not a big surprise, given that Obama has run the most effective online campaign among the 2008 presidential candidates. Of the $32 million he raised in January, for example, $28 million came from online donors.   Click for details...


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