Looking ahead: Video Next Big Thing For Web Advertising

By Kris Oser

January 24, 2005 – As more consumers go online via broadband connections, they have embraced video on the Web. This year, advertisers will follow them, according to the 2005 Online Media Outlook, released by Avenue A/Razorfish.

Advertisers have seen the impact online video ads can play in their campaigns, but most are still in the testing phase. So, price, duration, standard formats, tracking and reporting ``are still very much in flux,'' Avenue A/Razorfish found.

The ad formats purchased most widely are: ``in-page,'' in which a video ad exists within an on-page ad unit; ``in-stream,'' in which a user requests video content and an ad is shown within that content; and ``transitional,'' which appears between pages.

Inventory that accommodates video is still limited across the Web, although the major portals, Yahoo, America Online and MSN, ``are each very focused on video,'' said Jeff Lanctot, VP-media, Avenue A, who wrote the study. With the introduction of MSN Video in 2004, MSN has a bit of a head start, but ``it's very early in the race,'' he cautioned. AOL has considerable ``homegrown'' content from parent Time Warner. And Yahoo is increasingly entertainment focused. It was the online partner for the TV series ``The Apprentice'' last year and is the exclusive distributor of the new JibJab animated features.

What's the next development in online video innovation? Video search, Mr. Lanctot said. ``Imagine going to Google, typing in an actor's name and seeing a clip from a film,'' he said.

For more on Avenue A/Razorfish's study, go to AdAge.com QwikFIND aaq26h