Media Monday: Online Video Advertisement gets hotter as News channels eye more Videos
Did you see a prominent change in most of the news websites recently ?
Yes, websites across India and US are using Videos more conspicuously to lure both readers and advertisers. The trend is becoming hotter in US (as Broadband users are increasing) with websites like cnn.com, espn.com and wsj.com are leading the trend.
Why this transformation?
The main reason is the CPM (cost-per-thousand) publishers get for these video ads are much higher for Videos – this is because ads on videos are usually shown before actual video gets started. But such type of ad model is only possible with websites having proprietary videos as they need to embed ads on each video.
This may be the reason why Google is unable to have such revenue model with “Youtube” videos.
Last year Yahoo bought Maven Networks for $160 Million which was a prominent Online Video Ad player. Forrester research forecasts that U.S. online video advertising will grow to more than $4 billion in 2011.
With social networking getting embedded in every type of website, it’s also getting easier to target videos to specific audience based on their demographic details (Facebook does the same).
It looks like finally we are shifting from text based “Google” ads to Video based ads. Do you think other players can outplay Google this time?
[This Media Monday digest has been written by Rabi Gupta, a start up enthusiast and co-founder of iDubba (Intelligent Box).]