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TDG: Future Bleak for User-Generated Digital Video Advertising
[July 17, 2008]

TDG: Future Bleak for User-Generated Digital Video Advertising


(Marketwire Via Acquire Media NewsEdge) DALLAS, TX, July 17 / MARKET WIRE/ --

User-Generated Video (UGV) will continue to
account for close to half of total online video streams between 2008 and
2013, but disappointingly will produce no more than 4% of ad-related online
video revenue at any time during this period. According TDG's latest
analysis, Online TV and the
Future of Digital Video Advertising, the prospects for online video
advertising have little to do with UGV, except as an indirect way of
drawing more viewers to professional online video sites capable of
generating sustainable ad-related revenue.

According to Mugs Buckley, a veteran of TV and video advertising and author
of TDG's new report, UGV currently accounts for 42% of online video
streams, yet generates less than 4% of video ad-related revenue.
Conversely, professional online video (including both short-clip and
long-form content) accounts for 58% of streams and 96% of ad-related
revenue, a reality unlikely to change over the next five years.

While the business of online video remains immature, Buckley notes that the
continued growth in online TV viewing among consumers and the push to get
this content directly to the TV will cultivate the larger audience for
professional online video content.

According to Buckley, online digital video advertising is in many ways
superior to TV advertising. While TV is a great medium for giving
advertisers reach that is both broad and scalable, the Internet uniquely
delivers on three increasingly important attributes: engagement (the
ability to interact with the viewer), measurement (the ability to quantify
consumer reaction), and audience tracking (the ability to compare behavior
over time). Armed with these unique abilities, advertisers can more easily
determine Return-on-Investment (ROI) and customize ads for specific
audiences, even adjusting the ads dynamically based on real-time audience
profiling.

Online TV and the Future of
Digital Video Advertising is the most comprehensive report to date on
the business of online video-related advertising. It provides detailed
forecasts regarding streaming video consumption and ad-related revenue by
both amateur and professional classifications, as well as distinguishing
between short-clip, long-form, and other forms of professional online
video. It also contains a thorough set of recommendations for those
looking to enter the online video market space.

Download a copy of our latest Market dBrief(TM), The Business Dynamics
of PayTV versus Internet TV.


For more information about this report, please visit TDG's website
(www.asktdg.com) or contact the firm at 469.287.8050.

About The Diffusion Group (TDG):

TDG is a leading analytics and advisory firm specializing in the broadband
media and digital home markets. Using a unique blend of executive-level
expertise and unrivaled market research, TDG helps clients master the
challenges and opportunities associated with emerging consumer
technologies. TDG produces more than "research" -- we generate
Intelligence in Action?.

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Contact:
Wendy Stockard
[email protected]

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