Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space

Media Monday: Online Video Advertisement gets hotter as News channels eye more Videos

2

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.

Even in India websites like ibnlive and timesnow.tv are using video clips for almost every news piece.

Video Advertising growth

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).]

  1. Rohan says

    One has to be careful that it does not get killed in its incipient stage.

    From what I have observed, many sites that include videos inline do not allow the use to choose when to start playing the video. The video automatically starts streaming. This is very annoying and can cause a user to ‘block’ videos indiscriminately.

    Its an open fact that many Indians portals do not earn enough revenues to keep the show running. To compensate for this, and perhaps out of desperation, they choose aggressive and obtrusive advertising tactics.

    1. rabi gupta says

      Hi Rohan,
      This is a valid point. Even I agree to this. Some websites just bluntly think that every Indian has a 2MBPS connection and they can manage video streaming. But they all should take care regarding this.

Leave A Reply

Your email address will not be published.

who's online