From nuts and bolts to the internet, long seen as the fastest growing segment of our economy, online video advertising in the fourth quarter has come to virtual standstill according to NBC Universal, the Wall Street Journal reported. Nevertheless, US advertisers expect online video ads to increase 45% to 850 million in 2009.Compare this optimistic prediction to one done by the Bernstein Research group, who are predicting a drop of 1.9% this year and 5% next year.
Hulu, a joint venture with NBC says that its overall revenue is growing month to month. However, where in the past advertising on a site was sold out, this no longer is the case. One of the problems facing advertisers is the high cost of internet video advertising, which can be more expensive than conventional TV.
Some of this is changing as internet companies produce cheaper, high quality videos. Two smaller firms, Broadband Enterprises and Bright Roll, are doing just that. The larger networks like Time Warner, AOL and MSN are distributing their own online video ads. CBS, for example, expects profits to be in the high double digits, but most networks say its too early to predict the revenues for 2009.
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