Online Ad Spending Going Up

According to Borrell Associates (as reported by WebProNews):

Local online video advertising will account for $371 million this year, which is 5 percent of total online ad spending. In 2012, that amount will climb to $5 billion and will account for 35 percent of local online advertising budgets, Borrell projects in its report, “The New Frontier: Local Online Video Advertising.”

The thought is that online video ads will allow local marketers to reach audiences (through local sites like TV or newspaper ones) without the entry cost of television.

Author: Nalts

Hi. I'm Nalts.

33 thoughts on “Online Ad Spending Going Up”

  1. Oh I’m sooo jazzed to be in the birthday tribute. Watching my name burnout in flames. And it makes me crazy that I can’t even comment because I’m out of stupid comments and have to wait. Grrrrr.

  2. nalts – do you think networks are going to start doing shows online??? production quality shows to test actors/actresses before they put them on TV or the bigscreen?

  3. They have to find some way, yumajohnny, to get the money away from content creators and back to execs where it belongs, some way to drive amateurs away from the pie. They’ll have their lackeys scream for better production value in amateur video first, them jump out of the bushes as our saviors. It’s an old monopolizing tactic.

  4. They have to find some way, yumajohnny, to get the money away from content creators and back to execs where it belongs, some way to drive amateurs away from the pie. They’ll have their lackeys scream for better production value in amateur video first, them jump out of the bushes as our saviors. It’s an old monopolizing tactic.

  5. Man, I’m having troubles with your WordPress comments, Nalts. It’s like the YouTube comments section. It won’t let me comment using my blogspot url at all, sometimes it lets me comment using my tripod url and sometimes it won’t. Sometimes it instantly posts my comments and sometimes it waits a few moments. Ugh!

  6. Nothing like making predictions 5-6 years in the future on something that changes in such a predictable manner as the Internet. Way to go Borrell Associates.

    My safe top 5 predictions for the internet by 2012:

    5. At least 10 more people will be using the internet in 2012 than 2007.
    4. Political Ad Campaigns for the 2012 Presidential Election will find a way to barrage Internet users with ads. Users find other means of communicating (see #1)
    3. Time Warner acquires ZeFrank’s library of videos for $4.8Bil
    2. In a deal negotiated by Rip Taylor, Google attempts to buy willvideoforfood.com for $1.98. Nalts refuses to sell out, cites “Lack of creative input”
    1. Smellternet replaces Internet, Nalts launches “WillStinkForFood.com”

  7. I had the same problem, must be all that valentine’s day love at wood press, someone rolled over on the wrong button.

    But I think marquis is right, the networks won’t let this slip through their hands, they want control of this media and they are looking for a cheap way to get it. The content creator will have to get innovated, word of mouth still rules. Build an audience, make them want to bookmark your page and then keep them coming back. It’s a lot of work.

    I don’t know how many people I told about Nalts, being most popular amongst the soccer mom demographic, marquis has been well received amongst my art crowd friends, but they are poor and have to watch at the library.

    Kevin you’re an innovative guy with talent, put a plane in to place, you’ve built a nice little community and fan base who, I bet are willing to help. Seize the moment become the next Ted Turner!

  8. Soccer moms are indeed my target demo. Fortunately, they carry great purchasing power. So I expect a deal from Revlon any day. As for the big boys coming to online video, it’s inevitible. And they’ll make some mistakes at first, but eventually cannibalize a lot of the activity around amateurs. But I’m holding strong. Power to the amateurs. Who needs big media? Unless of course they wanted to pay me lots of money.

  9. Marquis- it kills me that you’re having comment problems. I keep planning to move this blog to a dedicated server and pay for the fancy version of wordpress but it seems like so much work. And cost. And I’m not sure if comments would be better. But at least I could embed videos.

  10. I’m not the typical soccer mom (always stood out like a sore thumb), but I do have three kids of my own, two step-kids, and a quirky sense of humor, so perhaps that is why I enjoy nalts so much? And the sticking out like a sore thumb thing? Maybe that is why I am a marquisdejolie fan? Or maybe it’s that quirky sense of humor, and the fact that I’m the daughter of a sailor/cantankerous old goat…? I am so confused.

  11. The one tattoo I’m thinking about allowing myself, dalisdolly, is the Chinese symbol for Old Goat: http://img253.imageshack.us/img253/4205/goatpt1.gif
    It would drive the Baptists here into a state of feral frenzy once they got someone to translate it for them.

    Meanwhile, Nalts, how do you live without embedded videos in your blog? You’ve seen my blogger. Widgets in the header. Widgets in the footer. Widgets in the sidebar. Widgets in the summertime. I have 30,000 videos on my splash page! Can’t get enough of that crap.

  12. Is that really the symbol for old goat, or even just goat? How can you be sure? If it is, then I may have found my next tattoo, too. It would be a great tribute to my dad! =)

  13. I’ve got a cunning plan, a magnet and the little giant; the one ladder that does it all. Now it’s just a matter of putting them in the right order.

    Here is my “off the cuff” rebuttal to PC’s five. It’s highly recommended that you are drinking heavily before reading.

    “5. At least 10 more people will be using the internet in 2012 than 2007.”

    Only because computers are now invisible.

    “4. Political Ad Campaigns for the 2012 Presidential Election will find a way to barrage Internet users with ads. Users find other means of communicating (see #1)”

    Everyone registers online as a lobbyist, politicians must now resort to going door to door again.

    “3. Time Warner acquires ZeFrank’s library of videos for $4.8Bil”

    Zefrank later refuses the offer stating, “I’m just tired of the whole thing.”

    “2. In a deal negotiated by Rip Taylor, Google attempts to buy willvideoforfood.com for $1.98. Nalts refuses to sell out, cites “Lack of creative input””

    But the deal is clinched when google breaks down and tosses in a lifetime supply of Kellogg’s cereal and a video cam.

    “1. Smellternet replaces Internet, Nalts launches “WillStinkForFood.com””

    Finding fans aren’t hep on the new dot com name. Nalt’s decides to take the google money launch Internet 4.0 and buy the domain http://www.smellyalater.com

  14. google will buy willvideoforfood.com for a dollar 98 or 1.98billion??? and nalts you don’t only make videos for the soccer moms but the SOCCER COACHES! LOL Nalts videos are like the air you need to breath so once Google finds a way to charge for everyday air then they will buy out Nalts. Oh wait that sounds like that will never happen my bad. It will Happen Nalts just remember the little one’s around here. You can hire me to clean your pool and do the laundry! LOL

  15. I checked. Smellyalater is already taken. WillStinkforfood is available but it doesn’t have the same zing to it. I could fetch twice that price ($1.98) for Willvideoforfood.com. And I’ll bet CubeBreak could fetch a Franklin.

  16. One of the things in this thread is the bit about online amateur video to TV…don’t forget online to the direct to DVD (previously direct to video) marketplace (this is where all Disney movie sequels go on and on and on like Snow White III).

    Broken Saints the animated comic epic (brokensaints.com) moved from Flash animated chapters and episodes hosted on Flash author content websites…to DVD with some commercial success. In trivia news Nalts even worked with the guy (so not me) who helped to make the series super mega popular online (but he does not actually realize it I bet).

  17. Yes Jack I think the straight to DVD is going to go away soon also. It’s going to be straight to online download. I know they already have sites you can download movies but take a biz like Napster and now have a media download place where all a studio has to do is upload their video for sale with no outsourcing of DVD covers and such. CHA-CHING! and I think CubeBreak could fetch you quite a few Benjamins! (many many of them).

  18. “I checked. Smellyalater is already taken”
    that’s because in the upcoming season of gootube you create a time machine and go back to register the domain. While you’re there you the light bulb goes off and you buy stock in MS and Google, when you return you find that instead of Chad and Steve it’s now Nalts and Steve 😉

    “DVD is going to go away soon”
    I don’t know about that, I got a couple of lp’s for christmas, go figure, they’re back!

  19. jischinger – dvd’s going away – well if Mr. Bill Gates has his way with homes becoming more digital ie mp3 music and digital movies. just an opinion i mean a whole lot let cost in the long run. LP’s for christmas! which one’s?

  20. Thats awesome news, basically it means that anyone getting into Online Video productions (at whichever level) are entering into an increasing economy – which is always good business sense.

    I think if Viral Video creators could have an idea of the advertisier in mind first (i.e. have a video of a computer that never works) then the targetted ads at the end would be much more specific.

    Its no difference to TV. The types of commercials that come on in the middle of TV programs relate to the program that was just on. i.e. shows typically for women to watch, have commercials that advertise womens products or cleaning products.

    Looking around Revver in particular, I see VERY little instances of this targetted advertising. If sites like Revver are going to ride this wave, I think they should look back to how TV advertising grew so popular, and then maybe they can ride this ‘Advertising Wave’ just as Youtube will be doing.

  21. Yeah if you see some video of kid throwing himself of a train and hitting the tracks at 50mph you wanna see some kind of medical insurance ad not an ad for jam puddings or something..but then again

  22. hehe a rather extreme analagy, but true to the point 🙂

    My concern is that Advertisers Spending is been purely wasted in a lot of cases, and this will only scare advertisers away. Putting the right advert to the right audience is something that will determine who gets to the front of the grid, and who falls behind in a cloud of smoke.

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