While the US and UK local advertising markets are very, very different a report from a research and consulting company suggests a tend in video advertising that could be important everywhere.
Borrell Associates, in a report entitled, “The New Frontier: Local Online Video Advertsing”, (free executive summary) says:
Could it be? Are newspapers making more money from video advertising than local TV stations?
On the Internet, itâ€™s true â€“ and will continue to be true for at least another year. In 2006, newspaper-run Web sites captured about $81 million in locally spent streaming-video advertising, while local TV broadcasters captured about $32 million. Although it is small potatoes in the $280 billion U.S. advertising industry, it spotlights a fascinating phenomenon: Print media are using the Internet as a crossover platform to tap traditional TV advertisers, just as TV stations (and others) are trying to use the Internet to tap traditional print advertisers.
This is a tiny market and estimated to grow to $371 million this year. But in five years, Borrell predicts, local online video advertising will surpass $5 billion, representing more than one-third of all local online advertising. I am always suspicious of research from businesses which also offer consulting and sales training but even if that eye-watering figure is not reached there is probably something in this.
In the UK it seems to me that online video has a lot of local potential. Much of the video on national newspaper sites is replicating the national and international news that can easily be seen on digital TV and broadcaster’s websites. Many of the stories covered by regional newspapers are simply not covered by TV and there must be an opportunity in that.