By Marcelo Duran
Associate Editor
When it comes to the burgeoning local online video advertising market, newspapers are capitalizing in the battle they are waging against their cross-town broadcast television rivals.
In 2006, newspaper-run Web sites racked up $81 million in online video sales versus $32 million notched by broadcasters, according to a February study released by Borrell Associates Inc.
The study reports that print media are using the Internet as a crossover platform to tap traditional TV advertisers; just as TV stations and a number of other organizations are trying to top traditional print advertisers.
Nearly all local broadcast TV Web sites feature classified ads, and almost half of all newspapers sites offer video, the study said.
The study also finds that online competition between newspapers and broadcast TV stations will intensify this year as both sides develop Web-based video products.
“The clash will focus on automotive advertisers initially, and real estate, health and employment are prime targets as well,” the study said.
Newspapers in the video business
Newspapers have made the transition to Web-based video advertising quicker than their local broadcast competitors.
Newspapers are rapidly converting classified advertisers, particularly in the help-wanted and automotive verticals, into online video advertisers.
The study said that 40 percent of the 1,450 daily newspapers in the United States offer Web-based video.
Most use AP Digital’s video software, which each day delivers a selection of the world’s top stories.
A growing number of dailies are offering their own local services. The Naples (Fla.) Daily News, for example, last April launched Studio 55, a vodcast highlighting local news, sports and entertainment coverage.
“It is a new version of a newscast formulated for the Web,” said Andrea Lynn, the Daily News’ multimedia director.
“Studio 55 delivers news at the speed of life, via any platform, anytime.”
The Daily News began running 20- to 30-second video classified ads on the service at the end of last year. Today, the paper now runs around 20 of the ads, Lynn said.
Advertisers can submit their own video ads but the newspaper offers in-house production capabilities for higher-end videos.
“Visuals are an important offering in any content environment, whether in storytelling or in advertising,” Lynn said. “Rich media advertising has become the standard, and we want to provide clients the opportunity to connect with their audiences in every possible way.”
Real estate, jobs and automotive ads are popular video messages on the Daily News site, Lynn said.
“The click-throughs on the video ads are generally higher than other forms of standard Web ad types,” she said. “It is higher than the national click-rate average by about four times.”
Video ads booming
Borrell estimates total revenue from local video advertising will reach $371 million this year with the major cities capturing the biggest benefits.
Last year, the three largest markets — New York, Los Angeles and Chicago — each attracted more than $5 million from local advertisers that wanted to place streaming-video commercials on newspaper and broadcaster Web sites.
There were 37 additional markets that saw online video advertising eclipse $1 million, Borrell said.
By 2012, local online video advertising will surpass $5 billion, representing more than one-third of all local online advertising, the research firm said.
Video virals spread
Newspapers and vendors continue to roll out video-related services. A rundown of recent announcements:
•AP Digital and McClatchy-Tribune Information Services said they will distribute some of their content through Voxant’s Viral Syndication Network.
VSN lets publishers deliver licensed content to thousands of Web sites and blogs. The information is available on Voxant’s The NewsRoom Web site at www.thenewsroom.com, from where it is redistributed to other sites.
“Voxant provides a vehicle for AP to allow non-traditional customers to post individual stories, photos and video clips while maintaining control over its intellectual property,” said Jane Seagrave, vice president and director of AP Digital.
•AP and Microsoft wrapped up testing an online video platform aimed at letting newspapers, radio outlets and TV stations upload, publish and monetize locally created video, Beet TV reported last month. Papers evaluating the service, slated to go live in April, included The Houston Chronicle and (Denver) Rocky Mountain News.
•The New York Times said it would enable couples posting wedding announcements to submit videos detailing how they met to nytimes.com/weddings.
•The Miami Herald launched a daily video podcast on its Web site, miamiherald.com. The podcast, dubbed “What the 5!” covers the South Florida entertainment scene, the newspaper said.
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