The Business of Viral Video

BusinessWeek Technology Writer Catherine Holahan writes about the “raising bar on viral web ads.” My favorite part of the article is that it turned me on to this viral campaign for Axe (called Ravenstoke). Here are some other highlights.

• Video viral marketing—so named because it relies on computer users to spread commercials from person to person—has expanded from a negligible piece of the advertising pie to a $100 million to $150 million industry, researchers estimate.
• Andrew Keller, executive creative director of Miami ad firm Crispin Porter & Bogusky (Creators of Burger King’s Subservient Chicken), says the “newness is sort of wearing off.”
• London company, The Viral Factory, charges $250,000 to $500,000 to create ads, and they guarantee reach.
• Microsoft plans to release its YouTube competitor by year end. Spokespeople are saying little about the site, internally named “Warhol,” except that it will feature original programming and host user-created videos.