The NY Times reports that news sites are finding more and more success with their online video offerings as ways to increase ad revenue. The impact is even being felt beyond the delivery of news.
Beyond news sites, video is now the fastest-growing segment of the Internet advertising market. Digital video amounted to $477 million in revenue in the first half of 2009, up 38 percent from the same time period in 2008, according to the Interactive Advertising Bureau.
I have wondered over time as to just how much video ‘regular’ people ingest and if there is room for growth. I am certainly not a ‘power consumer’ of video but I am finding myself watching more online offerings. I still avoid the ‘stupid human tricks’ side of the online video experience. In fact, any ads attached to that kind of offering will fall flat with someone like myself but I am just one point of view.
What’s interesting is that the online news experience is starting to look more and more like one medium it is supposedly challenging: television.
News Web sites are starting to look a lot less like newspapers and a lot more like television.
CNN.com and ESPN.com are featuring video much more prominently on their home pages, often prompting visitors to press play before they begin to read. Even The Wall Street Journal has moved its video player front and center with a twice-a-day live newscast on WSJ.com.
The shift is likely a natural progression since there seems to be more news than ever. Of course, we have the same number of events that are newsworthy it’s just that the ability to now see more is exponentially increased.
“Every watershed event leaves video more popular than before,” said Charles W. Tillinghast, the president of MSNBC.com, a joint venture between NBC Universal and Microsoft.
So as the consumer becomes more accepting and the advertisers actually pay attention to what consumers will tolerate the combination of the two is starting to become a real player in the online advertising space. One drawback will be the cost to produce this content will keep competition down but the big guys actually like that idea.
“It actually works really well,” said Brian Quinn, the vice president and general manager of digital ad sales for The Journal’s digital network. A 15-second pre-roll “followed by two to five minutes of high-quality content is a fair-value exchange,” Mr. Quinn said.
Analysts say they expect the flow of online advertising dollars to video to continue. The research firm eMarketer projects 35 to 45 percent growth for the segment for each of the next five years, topping out at $5.2 billion in 2014. (Even then, it would hardly rival search advertising, which is projected to be a $16 billion business.)
So as this option for marketers grows there will be the usual growing pains. Among those is people starting to confuse an event with actual news and then rushing to produce more noise and junk so an ad can be slapped on it. At that point, it will be up to the consumer to “Just say no!” so the healthy balance between news and commerce can be reached as quickly and painlessly as possible.
How do you feel about ads attached to any video you would like to watch? Is it more acceptable depending upon the venue? Do you make exceptions abot your reactions to ads depending on what you are trying to find?