Report: Newspaper Web Sites Dominated Local Streaming Video Advertising

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By: Jennifer Saba

Newspapers are beating broadcast TV stations at their own game. According to a new study from Borrell Associates, newspaper Web sites are capturing more than 50% of streaming-video advertising dollars. Newspaper Web sites netted $81 million in locally spent streaming-video advertising while local TV Web sites took in $32 million in 2006.

“Print media are using the Internet as a crossover platform to tap traditional TV advertisers,” analysts wrote in the report.

Admittedly, the spoils are small with the local video advertising market pegged at $161 million in 2006. But it’s a growing form of advertising. Borrell projects that in five years, local online video advertising will surpass $5 billion — representing more than one-third of all local online advertising.

The Portsmouth, Va.-based consulting firm estimates that within that same time span, three-fourths of all local placement on the Web will be in the form of paid search or video advertising.

The report points out that TV Web sites are known for its video news libraries while newspapers have concentrated more on commercial content — mainly in online classified ads by up selling video supplements.

The report said that of the roughly 1,450 daily papers in the U.S., about 40% are equipped with some form of video player on their Web sites. Many have signed up with the Associated Press’ video program though few are selling ads around the content. AP though has partnered with MSN to sell 15-second pre-roll commercials across its member sites.

Borrell identified several categories that “dominated” streaming video including real estate and automotive.

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