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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...


Report: Streaming Video to Reach $27 Billion
Streaming video and music accessed through the Internet and mobile devices will generate $27 billion in revenue by 2011, according to an Insight Research report. In what Insight president Robert Rosenberg calls a conservative prediction, the report also projects 32 percent annual compound growth for the streaming media market.     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...


MySpace Advertising Surges News Corp. yesterday reported that advertising sales on MySpace, the Web's No. 1 social network, surged 87 percent in the fourth quarter, "primarily due to revenue growth for search and advertising," the company said. Fox Interactive Media, the conglomerate's online division, is now on pace to reach $1 billion by the end of 2008. Operating profit showed exponential growth, up from $1 million in 2006 to $23 million in 2007. Source: Business Week   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...


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...


The Business Face of Social Networking
You’ve got a Web site, a blog, and maybe even an RSS feed. Think you’re done with Web 2.0? Think again. Social networking sites—community-driven Web sites that aim to connect friends and colleagues into an interwoven fabric of a network—should be next up on your business agenda. The sites can help you find referrals, vet ideas, get advice and more—usually for free.   When it comes to social networking for business, we’re not referring to MySpace, FaceBook and other online popularity contests where teens and 20-somethings (plus 30-somethings who wish they were still 20-somethings) post embellished or embarrassing tidbits about themselves in the name of “connecting” with friends and strangers. (Though it doesn’t hurt to have a presence there, if that demographic is your target market).    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...


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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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