In spite of the fact newspapers make up a huge category of overall advertising outlay, advertisers are switching their attention over to online advertising, namely to the Internet, because folks give preference to online activities (watching and downloading videos, reading traditional media, playing video games, music, blogging, shopping, etc.).
According to numerous surveys, the web ad spend will surpass traditional media ad spend by 2011. What is there so strange in that? We can’t be shocked! “Driven by audience migration, the US Internet is anticipated to capture $61.98 billion and become the top ad medium in 2011. Traditional media will show slow, low single-digit growth while alternative media will grow at a compound annual rate of 17.4 percent during the forecast period.”
According to Fitch Ratings, newspaper industry met with difficulties due to the fact that print publications continue to experience declines in advertising. However, AP reports that online advertising at newspapers continued to grow. The share of online ads as a portion of all newspaper revenues continued to rise. “Newspapers still make up the largest category of overall advertising expenditures in the United States, but advertisers are steadily shifting money out of print advertising to the Internet as people increasingly go online for information and entertainment,” - reports AP.
Thus, we can arrive at a conclusion, that the most effective investment of money is the internet, namely online video and web TV niches, in the least online mass media. I can cite a whole number of examples when video portals use a YouTube model (but we should keep in mind, this pattern doesn’t exist theoretically). Folks watch more online videos and less long-length films. Some web sites are being modeled on making the experience and success of streaming videos more prefer watching web television.
In my opinion, there can be called at least two antipodal camps. One of them uses short video clips of moderate quality, but has more incoming traffic at the expense of frequent customers. Such sites offer the option of a full-screen mode, video is typically watched in a smaller box that can be embedded in other sites and blogs, user-generated content and inVideo ads.
The folks that fight on the other side rely on high quality videos and an appropriate audience. They are ad-supported and transmit video with peer-to-peer technology, use professionally produced content. Examples: Veoh, Joost, Babelgum. Babelgum’s slogan is: “TV experience, Internet substance.” Veoh touts: “VeohTV makes watching Internet as simple as watching television.” Joost simply states: “The new way of watching TV.”
On the one part, these new TV and video websites can compete with video sharing portals in full, creating both the YouTube patterns clones and their own TV portals, on the other hand, YouTube and the like sites (MySpace, Dailymotion, Revver, etc.) have “created a social kind of viewing.”
“At the same time, the consumer migration to digital media - which require less time investment than traditional media counterparts (think 3-minute YouTube clips vs. 30-minute TV shows) - has spawned a year-over-year decline in the amount of time consumers spent with media”.
Nevertheless, according to researchers, video ads viewed on media sites are more likely to be acted upon than video ads seen on other content sites. That is most likely because, contrary to popular belief, newsy video clips are the most popular form of online video.
“Over one-third of consumers on magazine (38%), newspaper (37%), and online-only news (35%) sites say they have searched for more information after watching a video ad, while about one-quarter did so after watching an ad on a portal (27%) or UGC (24%) site. About one-quarter of consumers on magazine (29%) and online-only news (26%) sites went into a store to check out a product after viewing a video ad, while only 17% on portal sites and 14% on UGC sites did so. About one-in-five consumers on local broadcast TV (21%), national broadcast TV (19%) and cable TV (19%) sites requested more information after viewing a video ad, while only 16% on portal and 14% on UGC sites did so. Overall, 80% of all video viewers have watched a video ad online, and 52% have taken some sort of action, whether it’s checking out a website (31%), searching for more info (22%), going into a store (15%), or making a purchase (16%).” (OPA news)
To sum up, we can’t but mention what contribution make all the advertising companies and online video websites that team up in order to entertain us and keep informed, earning extra money at the same time. More than the half of online video viewers acted upon online inVideo ads. All the time we are being used, and vice versa.
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