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03/07/2008  |  Video Online Ads Lead the Way

Since the first TV advertisement hit the screens, video has captured the imaginations of billions of potential buyers. It is surprising that online advertising has taken so long to exploit the medium. Social networking sites were among the first to capitalise on how we love to watch moving pictures on our computers. Google picked up on our desire to be visually entertained by including text ads close to the screen on their YouTube, the site that attracts more viewers of its videos than any other.

Q Interactive, the online marketing agency, combines direct response with brand marketing in TrueLeads, a lead generation product on which advertisers can collect information from viewers of online video advertisements. Q interactive claims that a higher quality lead is generated through video presentations, driving brand awareness and giving prospective clients clearer information in order to make an informed choice.

Small to medium businesses (SMB) stand to profit from online video advertisements, according to Matt Booth, program director for the Kelsey Group's Interactive Local Media practice. Kelsey forecast that revenue from local online video advertising will have grown by 168 % by 2012. The New Jersey based group predicts total revenue of one and a half billion dollars to be generated in four years; 11.6 % of SMB's advertising budgets are expected to be spent on video ads by 2012.

The growth of mobile web devices is another opportunity for businesses to market their products online. Jaguar chose to promote their XF model in the United States by offering video downloads to mobile phones via Yahoo six months prior to the model's launch at the Los Angeles Motor Show in October 2007. Video and wallpaper depicting the $45,000 plus luxury car were offered to mobile phone users along with details of local dealers. Jaguar obtained nearly 2,500 confirmed leads from more than 11,000 downloads. 1,500 respondents gave their email addresses, while almost 1,000 contacted their local dealer.

In conclusion, video online advertisements offer the major enterprise a sure-fire way to promote brand awareness but should also be considered by the smaller business as a vital component in its strategic marketing plan.