Online video advertising
According to a report by eMarketer, at $775 million, online video advertising amounts to 5% of the $20 billion online advertising industry, and a fraction of the $ 280 billion advertising industry. This is inspite of the interest that online video has generated among the advertisers.
As this article states, some of the factors holding back online video’s ad-revenue growth include: fragmented audiences, limited inventory, a lack of video created specifically for the web and a still-evolving ad-buying model.
Inventory is expected to increase with the increase in sites providing broadband content, aided by a standardization in technology and the development of content suited to the medium. Maven Networks, which helps media companies put video content online, believes 10% of the $65 billion spent on TV ads will shift online by 2010, primarily to professionally produced content. The company estimates 20% of the content will attract 80% of the ad dollars.
According to Terry Semel, “A lot of learning is starting to take place, and a lot of trials are taking place. I see it ultimately as something that becomes very significant, and it’ll get there, but not quite yet.” The easy piece, he said, is getting sponsorships from big brand advertisers.
This has led to a slew of startups including Joost which plans to specialize in long-form, high quality content. (they have recently entered into a deal with Viacom, where Viacom would be schowcasing a number of videos from their older shows).
Another company Jumpcut, now acquired by Yahoo allows you to edit and create movies online. In an effort to incite public dialogue, Yahoo started the “Issue Film” contest encouraging entrants to create 30-60 second videos on contemporary issues of importance which would be showcased at Jumpcut.
Filed under: Digital culture, Emerging Tech, Ideas & Innovations, Trends