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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...


Making Sense Of Social Media Social media can be a bit daunting if you don't take a moment to make sense of it all. Each week there are more companies being funded and more mergers and acquisitions taking place as companies attempt to make sense of it all, but sometimes you want them to (quoting the Talking Heads) "Stop Making Sense" and just help us understand what's going on here. To understand the landscape you need to break social media down into its elemental pieces. As I can see it, social media as a blanket term is the one category that overlaps the most with other categories in emerging media, further making it difficult to sort through.   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...


Ad Spending On Social Networks Explodes In '08
Ad spending on online social networks worldwide will nearly double, to $2.2 billion in 2008 from $1.2 billion this year, according to an eMarketer study being released today. Most spending will come from the U.S., where social network advertising is projected to grow to $1.6 billion next year, from $920 million in 2007. MySpace and Facebook dominate U.S. social network advertising, claiming 70% of ad dollars. -     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...


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...


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...


Six of Ten Consumers Have Watched Online Video Ads
Some 59% of online consumers surveyed said they have watched online video ads, and more than half of those viewers said they took action (e.g., visited a website, bought something) in response to the ad, according to The Kelsey Group. The findings are from the “Online Video: A New Local Advertising Paradigm” report, part of the ongoing User View study of consumer usage of traditional and online information sources to find and locate local businesses.   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...


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YouTube Leads US Online Video Market with 28% Market Share
Nearly 75% of US internet users watched a video online (streaming or progressive downloads) in September, averaging three hours of video per person during the month, according to comScore’s Video Metrix. Google Sites, including YouTube, topped the rankings in both number of video viewers and videos viewed. Americans viewed more than 9 billion videos online in Sept., with Google Sites accounting for 2.6 billion videos viewed (28.3% share of videos), 2.5 billion of them at YouTube.com (27.6%):   Click for details...


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