Small, Local Businesses Look to Video Ads
Small and medium-sized businesses will spend 11.6 percent of their online advertising budgets on video ads by 2012, according to new data from the Kelsey Group.
The consultancy predicts that revenue from Web video ads will grow to $1.5 billion in 2012 from $10.9 million in 2007 as more local businesses turn to video for their Web advertising needs.
The report says that so far advertisers have embraced video ads, given the general appeal of video and its simplicity when compared to other forms of online advertising like pay-per-click. The Kelsey Group posits that local online video for small businesses "combines the traditional appeal of television advertising with the distribution efficiencies and advantages of the Internet."
Kelsey research also predicts that demand for video ads at the local level will drive online directories to become more efficient and compel publishers to look at them as a way to offset declining print revenue. The demand for the online directories creates an opportunity for their publishers to appeal to small and medium businesses - a market they haven't traditionally reached, according to the report's authors. The full copy of the Kelsey Group report is available only to consultancy clients.
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