Summary:

MSNBC.com’s GM Charlie Tillinghast believes advertising on its video clips will be a significant contributor to sales over the next 12 month…

MSNBC.com’s GM Charlie Tillinghast believes advertising on its video clips will be a significant contributor to sales over the next 12 months.

Online video advertisements made up 3 percent of MSNBC.com’s sales in its fiscal year 2004, said Tillinghast. Video ads are expected to rise to 8 percent by fiscal 2005, which captures the 12 months ending June 2005.

“People want to come in and buy $1 million [worth of ads] in one shot,” he said. “It’s a sold-out situation for the video.” The MSN deal, where MSNBC.com’s video is now available through MSN portal, has eassed the inventory situation.

The cost per thousand impressions for video ads runs about $30. That price has held for some time, and Tillinghast doesn’t see CPMs going up. He does, however, see volume rising.

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