Are online or offline video presentations certain ways to add more profits to your own business? Well, here’s a comprehensive analysis of data of streaming video advertising, streaming audio advertising, etc. taken from a report published by AccuStream iMedia Research. Because of the length of this report, I will outline the only a couple of things:

  • The market size for both streaming audio and video advertising is estimated at $343 million dollars in 2005, up 78% over $193 million dollars billed in 2004
  • The market is forecast to grow by 47% in 2006 to $504 million dollars
  • Streaming video gross ad billings are forecast at $321 million dollars in 2005, up by 75% over 2004
  • Streaming video gross ad billings are forecast to increase by 41.7% in 2006 to $455 million dollars
  • Internet radio gross ad billings are forecast to reach $22 million dollars in 2005, up by 82% over 2004
  • Internet music radio gross ad billings are forecast to increase 122% to $49 million dollars in 2006
  • Total streaming media subscription revenue is forecast at $608 million dollars in 2005, including Real Networks’ SuperPass and Rhapsody streaming subscription services, AOL’s MusicNet service and other independent streaming services, but not including music and movie download revenue, or broadband subscribers who play a content fee to AOL per month for access
  • Streaming subscription revenue is forecast to rise by 35% in 2006 to $821 million dollars (excluding download revenue)
  • Total streaming media subscription and download revenue is estimated at $641 million dollars in 2004
  • Total streaming media subscription and download revenue is forecast to grow by 110% in 2005 to $1.35 billion dollars
  • Total streaming media subscription and download revenue is forecast to grow by 35% in 2006 to $1.8 billion dollars

According to eMarketer, online video distribution and consumption will grow significantly in 2006. The Internet is increasingly seen by consumers as an entertainment platform, helped by increased broadband penetration and the adoption of improved digital rights management (DRM) technologies by content providers. The trend is also reinforced by supply-side moves such as increasingly sophisticated video search services from Google and Yahoo! and Apple’s drive to distribute video content through iTunes.

Opportunities for video-based online advertising will rise on the back of this trend. US spending on Internet video advertising will increase by a stunning 71% in 2006, to reach $385 million. 2007 is likely to see similar growth.

The rise of the very small screen will start in 2006. It is difficult to gauge exactly how many mobile TV subscribers there are, since none of the wireless operators is sharing numbers. But based on the data that is available, eMarketer estimates that in 2005 there were 1.2 million US consumers who watched TV programming on their mobile phone (either live programs or pre-recorded video). This number will more than double in 2006 to 3 million phone users. By 2009, there will be 15 million phone video viewers, an estimated 6.2% of total mobile phone subscribers.

DoubleClick came up with more interesting facts. The apparent effectiveness of video streaming, suggests that the popularity of this format online is likely to boom in the next few years. The next chart shows that video roughly tripled the increase for all these key brand metrics compared to GIF/JPG display ads.

Many advertisers are tempted to simply convert existing TV ads into digital format and use those for their online video ad campaigns. Most consumers, however, would likely prefer to see the online medium as something more original, engaging, amusing than same old ads. This is particularly true of video as part of an in-banner unit, which typically requires user initiation to play.

For in-stream video ads (where the ad is embedded as part of a video content file, typically as a 15-second pre-roll), original online content may be less vital, as the user has little choice but to watch the ad to get to the content. Either way, originality is key to being noticed and remembered. Integrate video into creative concepts, that’s the issue. The best in-banner video campaigns integrate the video into the overall creative to tell a story, demo a product, or otherwise communicate the brand message.

Online video is the next big thing. For the next few years, video advertising online is likely to surge. Presently, the online video takes the form primarily of in-banner video units, typically user-initiated clips inside standard ad sizes, and in-stream pre-roll spots in downloadable or streaming video content clips. As publishers increase inventory for these spots, expect dollars to flow rapidly from “traditional” rich media to video-enhanced rich media.

In a recent article called “New Media Predictions 2006: What Will The Web Future Bring?“, Robin Good (the genius behind the Master New Media blog) said:

This is the year (2006) that video on the web will become very popular. Tons of new online video services, tools, portable media devices, and new talent will rapidly appear on the Internet scene. All the ingredients that would allow small and medium-sized online publishers to adopt and leverage video publishing are now in place. The only challenge remains for most to find the extra talent and time to make this possible.

And Robin continues: “Video will be the key evangelist for broadband. Once you start understanding the amazing number of opportunities that web-based video creates it is second nature to understand how critical broadband and its wide adoption are to support the realization of those. And so broadband adoption will grow rapidly, along with new forms of interconnectivity based on new powerful standards.

Recent media studies give us impressive results. If you don’t know, up to 90% of people who receive a video presentation will also watch it! Please tell me if you find another marketing strategy with such higher “open rate” results. I will tell you a little secret: you won’t find it!

Other video industry experts discover that 50% or more viewers will actually see the same material more than once. Even further, up to 80% of them will pass away a video presentation to their friends, colleagues, relatives (that’s viral marketing at its best!). I must say, these are astounding numbers, don’t you think?

A video presentation will hit the right target with laser-beam precision. This will allow business owners enough time to concentrate their video marketing strategy on the right subject.

Video presentations allow you to combine ideas, benefits, incentives, sound, motion, and emotion in one single, dramatic package. Video entertains, informs, sets a mood, creates an impression, and evokes an emotional, positive response to your marketing efforts.

With a movie on your site, you can make a demonstration for your product/service or affiliate products/services. You can build leads, you can insert testimonials, you can do a lot of things. Most of all, you can make it the way that viewers will actually feel like they are hearing about your business “first-hand”.

Video has the ability to arouse an emotional response. As you know, certain actions are made on an emotional level, no matter if you buy expensive jewelry or donate money to a non-profit organization. By far, a combination of compelling text and video is the most effective way to reach people at a higher emotional(buying) level.

Another advantage of video is that you are able to control the order in which your message is received. It allows you to manipulate what you want the viewer to focus on, in the exact order that is most effective for selling your product or service. A video presentation allows people to stop, play and concentrate on the message. It focuses attention, energy, and emotions — all of which can have a strong impact on the buying decision!

So to recap, a video presentation:

  1. Gives you enough time to deliver your message to the right audience.
  2. Can be used as an incentive to generate sales leads.
  3. Create a sense of entertainment, informs, sets a mood, motivates, educates.
  4. Allow full or partial product demonstrations, better presentation of benefits, stronger testimonials, etc.
  5. Stimulates the buying decision.
  6. Has a high response rate.
  7. Produces a high conversion rate.
  8. Has a higher ROI (return on investment.)
  9. Is cost effective.

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