Back to the September 2006 issue.

Online Video Advertising is Heating Up

(by Craig Cooke, CEO)

Online video advertising has created quite a buzz in 2006. Even though it constitutes only a small portion of the overall online advertising pie, it is growing rapidly. Recently, the Online Publishers Association discovered that more than 25% of Internet users watch online videos weekly.

The biggest development to ignite the fire with online video advertising is the popularity of YouTube.com. If you haven’t seen this site yet, please investigate. It enables Internet users of all types to upload and publish their video files. From simple monologues to major brands, you can see it all. Once a video strikes a chord with an audience, it spreads like wildfire due to the community aspect of the site. Major advertisers are waking up to the fact that the Internet is ready to deliver online video ads through broadband connections.

Another hot development this year comes from Google of course. Currently, they are running an experiment with advertisers to test adding video as an option to AdSense customers. In effect, this will combine the power of paid placement with the impact of video. This is definitely a development to keep a close eye on.

Advertisers that are jumping onto the online video bandwagon early on include major retailers, auto manufacturers and entertainment companies. For the most part, advertisers have been repurposing their traditional 30-second spots. However, the overall consensus is that the 30-second spot is too long for the web. Soon, advertisers will roll out Internet-only versions of their commercials.

The biggest challenge for online video right now is the lack of standards. This will work itself out in time just as banner ads did and rich media is now. Be sure to keep your eyes out for this exciting development with online advertising. It’s bringing the best of two worlds into one–the accountability and direct responsive nature of the Internet and the effectiveness of video.

To learn more about online video advertising, please contact us at 949.215.1250.





Statistics Corner

By 2010, the online game market is expected to reach $4.4 billion, up from $1.1 billion in revenues last year according to a study by Parks Associates.

Over 34 million users connect to the Internet using their mobile phone according to a study conducted by Telephia.

Business-to-business email is best sent on Monday or Tuesday, with most people preferring Tuesday according to a survey conducted by eROI. Business-to-consumer email trends towards Friday being the best day for delivery.

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