Video Ads to become VERY popular, LOL, says Bambi- BSMSNBC's bend over girl- ("any story, any time, no matter how absurd!")
MSNBC.com sees video ads surging
By Bambi Francisco, CBS.MarketWatch.com
SAN FRANCISCO (CBS.MW) -- At some point, more video may be watched via the Internet than on TV. That may sound farfetched -- for now. But, at the very least, online publications are seeing rising demand for the streamed content they put online. In fact, MSNBC.com, jointly owned by GE's NBC and Microsoft's (MSFT) MSN, believes advertising on its video clips will be a significant contributor to sales over the next 12 months. "We see video as being a major component in the coming fiscal year [2005] as opposed to not having played a big role [in fiscal 2004]," said Charlie Tillinghast, MSNBC.com's general manager and publisher, in an interview with CBS.MarketWatch.
Online video advertisements made up 3 percent of MSNBC.com's sales in its fiscal year 2004, said Tillinghast. Video ads are expected to rise to 8 percent by fiscal 2005, which captures the 12 months ending June 2005. But it could be even more, he suggested. "The limiting factor is inventory, not demand," he said. "Unlike a typical Web page with two or three ads, there is only one streaming ad for every two video clips. So you need a large number of streams to create significant inventory. "Video ads are particularly interesting for MSNBC.com because they tap into broadcast advertising budgets, not just Internet budgets."