Blog Post

Signs Point to Yes for Online Video Revenue

Sure, every survey comes laced with agenda, so here’s a whole group of them so you can be efficient about remembering not to suspend your disbelief. The headlines: a bunch of people watch online video, internet advertising is up, broadcast television advertising is down, and TV stations are getting traction online. So maybe it is the NewTeeVee agenda they’re pushing!

The Kelsey Group surveyed 501 online adult consumers and found 59 percent of them watched online video, with more than half going to a website or a physical location, or making a purchase, in response to videos. The intent of the report was to establish online video as a local and small-business advertising medium.

The Interactive Advertising Bureau and PricewaterhouseCoopers released their report on U.S. Internet advertising revenue for 2006, with the headline being revenues rising 35 percent to $16.9 billion. For NewTeeVee’s purposes, rich media advertising, which includes broadband video, was up to $1.192 billion in 2006, from 1.004 billion in 2005 — though it amounted to 7 percent of total spending, down from 8 percent the year before.

Broadcast television revenue was down 5.3 percent to $11.7 billion in the first quarter of 2007, according to a Television Bureau of Advertising analysis of TNS Media Intelligence data as published in MediaWeek. Network TV led the downslide, down 6.5 percent at $6.7 billion. Local did the best, losing 3 percent to $4.04 billion.

The Media Audit’s survey of local TV and newspaper websites showed TV stations moving higher in the online ranks as compared to their print brethren, according to MediaPost. The study measured reach within demographics, determinging Raleigh-Durham’s WRAL-TV site scored the best, with 45.8 percent adult reach and 474,100 monthly visitors. We had previously written about a study showing local TV online revenue was up 41 percent in 2006 to $399 million, though it was still a sixth of the amount spent on local online advertising for newspapers.

3 Responses to “Signs Point to Yes for Online Video Revenue”

  1. Video is hot, but I’m not sure that its always the best way to monetize website traffic. Sometimes regular web pages can generate more revenue per user per unit time. I’ve blogged a bit about this on the Lightspeed blog – if you’re interested click on my name in this comment to read more