A study by Insight Express carried out for Advertising.com (the number one online advertiser) found that news and video streams were the most popular types of content for viewers.
- News clips were favored by 48% respondents
- Music videos were preferred by 47%
- Movie trailers were next with 32%
While ads pay for some of the content that drove streaming growth last year, eMarketer senior analyst David Hallerman believes that the market for streaming ads may have built in limits.
“The current video ad inventory shortages both create higher CPMs and hold back a fuller flourishing of this market”
Last year in June 2006 McKinsey & Co. reported that Internet video ads were 80% sold out in 2005! “Assuming that marketers don’t increase the number of ads they place in each video stream, the maximum supply of video ads is currently about $600 million a year – far less than future demand,” noted McKinsey & Co.
My conclusion is that those new media players, who can make the production of video ads easy, have an opportunity to exploit. Microsoft Movie Maker is the easiest so far. But there is a need for better-effect templates that can make video editing on microsoft platforms easy for the marketing teams of most non-tech savvy companies. And once that is done, the growing presence of established Internet video channels like www.Youtube.com and niche channels like www.MyOrbit.tv (for business) make it easier to reach large or focused audience.
About the author: Shankar AVSB is the CEO of MyOrbit and actively tracks the online new media markets and advises businesses on how to benefits from the new market developments.