Itâ€™s true: newspapers are outperforming TV in video ads. In 2006, newspapers’ websites sold $81 million in local online streaming video advertisements. Local TV broadcasters’ websites sold only $32 million. Even taken with the other $48 million spent on online video advertising, itâ€™s not much compared to the advertising industry total of $280 billion. But look out: online video is poised to become a more and more significant portion of online ad spending.
This year, $371 million will be spent on local online video advertisingâ€”comprising about 5% of the total of $7.7 billion online ad spending according to Borrell Associates Incâ€™s new study, â€œThe New Frontier: Local Online Video Advertising.â€ This is more than double last yearâ€™s online video spend total of $161 million.