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- Content producers can create and edit video at very low costs
- Content producers can distribute content at close to zero cost through
online video platforms
- Consumers now have the bandwidth and computing power at home to be able
to consume online video
- Estimated 400 million broadband users world-wide by 2010 (IDC)
- Online video platforms providing free hosting and access have been made
possible by low storage and bandwidth costs
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- Online video as a % of total online ad spend will grow from 2.6% in 2006 to 11.5% in 2010
(source: eMarketer)
- Video is a familiar creative format and long-favored mass medium for big
brand advertisers and their ad agencies
- Video ads command higher CPMs ($20-$40) vs. text & banner ads
($3-$10)
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- Online video will usher in new advertising models
- User experience, reduction in search effort, and quality of content are
key to audience capture & monetization for online video sites
- Further reading
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