|
June 25, 2008
U.S. Local Online Video Advertising
Market to Reach US$1.5 Billion by 2012, According to The Kelsey
Group
SMBs expected to
allocate 11.6% of their online budgets to video advertising by 2012,
driven in part by compelling consumer adoption and conversion rates.
Princeton, NJ (June 25, 2008) --
According to The Kelsey Group’s U.S. Local Video Forecast
(2007-2012), local online video ad revenues will experience significant
growth during the forecast period, increasing from US$10.9 million
in 2007 to US$1.5 billion by the end of 2012, representing a compound
annual growth rate (CAGR) of 167.8 percent. The firm expects video
ad products to command 11.6 percent of the online advertising budgets
of small and medium-sized businesses (SMBs) by 2012 (CAGR: 124.5
percent).
The forecast reveals that the popularity of online
video has trickled down to the local level in the form of SMB video
advertising that accompanies local listings and business profiles.
Considerable opportunity exists in two growing market segments—video
production companies targeting SMBs (e.g., Mixpo, Spot Runner, SpotMixer,
TurnHere) and Yellow Pages publishers adding video to their local
sales bundles.
“Publisher sales channels put Internet Yellow
Pages in the strongest position to benefit from SMB and user demand
for local online video,” said Matt Booth, senior vice president
and program director for The Kelsey Group’s Interactive Local
Media practice. “At the same time, local video growth will
hinge upon IYP execution of sales and video networks’ distributed
production and fulfillment.”
According to the report, the general appeal of video
and its simplicity compared with other forms of online advertising
are leading to relatively high close rates from deployed sales representatives.
This includes new advertisers that are not traditionally sold on
Yellow Pages advertising.
Driving SMB adoption of online video advertising
are compelling consumer usage and conversion rates. According to
The Kelsey Group’s User View study (March 2008), 62 percent
of consumers surveyed said they had seen an online video ad, up
from 59 percent in 2007. Of those consumers who had seen an ad,
47.3 percent went to a Web site, 19.1 percent requested information
about a product or service, 18.2 percent went to a store to check
out a product, and 16.9 percent made a purchase.
The Kelsey Group’s U.S. Local Video Forecast
(2007-2012) is available to clients of the firm’s Interactive
Local Media advisory service. For additional analyst perspective
on this subject, visit The Kelsey Group’s Local Media Blog
at http://blog.kelseygroup.com/index.php/category/video/.
About User View
User View is The Kelsey Group’s proprietary user behavior
tracking study, which focuses on how U.S. consumers are evolving
their use of traditional and online information sources to find
and locate local serving businesses. The Kelsey Group and research
partner ConStat Inc. have conducted User View since 2003, surveying
a nationally weighted sample of consumers via online survey. User
View Wave V was performed online in March 2008, with a sample size
of 988 online consumers.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising, online local
media, vertical market advertising and mobile advertising. Founded
in 1986, the company has built a reputation as the premier analyst
firm covering the directory publishing community and the emerging
local search marketplace, providing advisory services (The Kelsey
Report®, Interactive Local Media and Marketplaces), publishing
(Global Yellow Pages™), consulting (more than 400 individual
assignments) and conferences (72 events). For more information,
visit www.kelseygroup.com.
For more information contact:
Eileen Pacheco
eileen@tango-group.com
(781) 556-1026
|
