Three years ago online video advertising on Internet started to develop rapidly. In many ways, the progress of this direction was induced by the increasing popularity of resource YouTube and its following “clones”. These sites, called “video hosting” change the face of the Internet, having proved that persons are ready to look through videos right on their computers.

In 2007, after the buying of YouTube by Google, it began the first experiments with video ads, which were widely publicized by the media. Fairness, it should be noted that in 2007 the market of online video advertising in the U.S. already existed, mainly thanks to professional video sites. But with the popularity of YouTube and its purchase for $ 1.65 billion in the U.S. the boom of online video began and along with it - online video advertising. Currently in the world there are thousands of professional and amateur video hosting.

Before the financial crisis, analysts forecasted the growth of the U.S. market of online video ads to $ 3.8 billion by 2013. Now with the new terms the market will certainly be less, but in any case, it can leave behind many other ad formats according to the paces of growth.

According to examination of eMarketer, nearly 67% of U.S. marketers in 2010 are going to focus their marketing budgets on the online video ads. Among the pollees this kind of advertising is in half times more popular than advertising on social networking sites, in twice popular of promotion through search engines, and in three times more popular than usual banner.

How does it work there are a few types of applying of video player on the site as an advertising medium:

Advertising before videos (pre-roll);

Ads over the video clips (teasers, overlay);

Ads in the window till the start of video;

Contextual ads in video clips;

Advertisement in the window after the video.

The most commonly used formats are “Advertising before videos” and “Advertising over the video.”

Ads prior to videos are started after the user presses the button

Due to ubiquitous spread of online video advertising the marketers using online advertising have to re-evaluate their own strategies in order to answer the question: Is it necessary to shoot some videos or it is possible to use TV for placing on the Internet? What is the optimal duration of infomercial for broadcasting on the network: 15 or 30 seconds? Will video commercials compulsively playable at the beginning disserve to an advertised brand image? Is a contextual targeting really promising (targeting method, applied for demonstration of ads only on those pages which thematic match the thematic focus of ads)?

Until recently the markers have possessed too little information to check theories about what really works and what does not in the online video advertising. In the interim, the expenses of video advertising on the Internet grow every day, and if this year they will reach presumably $ 775 million, according to the prediction of the agency eMarketer to 2011 they should reach $ 4.3 billion. The producers of products and their advertising distributorships improve their marketing approaches when concluding from the results of numerous investigations and lessons learned from their own practice.

Some of the findings are quite unexpected and contradict with conventional wisdom. Namely: the effectiveness ratio of disused (for translation in the network) television commercials is traditionally low. Marketers have always suggested that the fastidious Internet users may be only interested in a special, exciting online broadcast of advertising. However, today there are evidences of high effectiveness of location on the Web, including the promotional materials created for television translation. “The fact that the ads were made for other purposes or other media does not signify that it is unusable for placement in the web”, - said James Hering, headmaster of integrated marketing at TM Advertising, Irving, state Texas.

Over the previous month, the specialists of agency Carat Fusion have placed online a few 15-and 30-second television commercials from the last campaign Hyundai “Smart Thinking” (”reasonable approach”). According to the representatives of agency, the approach has led to the wished results. “A record quantity of visitors of the site of company Hyundai evidences that there is a need to alter perceptions and attitude towards video advertising, translating online,” - says Brian Metheny, director of advertising distribution service in the group of companies Carat. According to spokesmen of Carat, for the first four days of broadcasting of television ads Hyundai videos on the web, the number of inquiries related to advertising campaign “Smart Thinking” in the various search engines became more than tripled.

In some measure, these results could be caused by the fact that the wandering web users are still thrilled by this form of transmission of ads, because it is still relatively new. Nevertheless, experts believe that over time the novelty factor fades, and it will be much more complicated for advertisers to achieve an equally positive response to video ads, placed online, whatever it was: originally filmed for the Internet or convert television.

Quite often we face the situation when we want to present goods, products or services. While thinking of the best way to do that, I would advise to take advantage of internet videos. Video presentations have proved their effectiveness already. Thus, if you are interested in this, visit this internet videos site - there you can find all the info required. Online network has already become a huge advertisement market assisting to increase sales. That’s why prefer internet videos whenever you need to present your goods or even simply to explain anything to your customers.

According to professionals, online video advertising will become one of the most popular forms of advertising in the near future. This is contributed by increasing the spread of broadband Internet access and cost reduction of tariffs. The main benefits of video ads on the Internet are: effect of novelty, interactivity and big target-ability.

The response in the online video ads is higher than in traditional banner ads. Approximately 60% of users after watching video advertising take any consumer actions.

There are several kinds of video advertising on the Internet:

In-Banner Video - demonstration of video in a banner ad of a conventional size. It is the most widespread format of video advertising.

Pre-roll - demonstration of the advertising video before the main video content that the user intends to watch.

Post-roll - video demonstration after the main promotional video, which the user has looked through. It is considered a more effective format than the Pre-Roll, as it is less annoying for users. Response, as a rule, is in several times higher than at the Pre-roll format.

Video context - video demonstration in the context of content pages of the site (when hovering the mouse on a keyword with a hyperlink, the video is demonstrated). There is also another variant of video context - display of text and graphic blocks over the video content. But this variant is quite controversial, because can annoy the Internet users.

Video ads can be demonstrated automatically after loading the page of the site or at any user’s operation (hover or click).

Options:

- Location Targeting;

- Limit of the frequency of demonstration advertising to a single user;

- Targeting by categories (channels);

- In some systems it is available targets: on providers, on content pages.

This kind of advertising is so popular that profile institutions publish their advices about the standardization of this kind of advertising functioning.

What extent is this kind of advertising more efficient than others, existing online to?

This kind of advertising is the most resemble to television ads and advertising in movie theaters. Video advertising - is a good tool for the creation of attitude toward the brand. Furthermore, video adsusually contact with the user for a longer time, have a stronger emotional effect and are usually better remembered. Unlike TV advertising, video ads are more precise. For example, you can count very precisely the number of users who looked a movie, or show the video only to users of a definite region.

What are the drawbacks of this type of advertising? The main weakness of this kind of advertising - is that the user need to download a much larger volume of traffic than usual when demonstrating banners.

What are the prospects of development of this segment in the near future? With the development of the Internet the traffic capacity grows, therefore it becomes more and more users that are able to watch the video ads. I consider this kind of advertising has the most optimistic prospects.

Quite often we come across the situation when we want to present goods, products or services. While considering the best way to do that, I would recommend using internet videos. Video presentations have proved their effectiveness already. Thus, if you are interested in this, check out this internet videos site - here you can find all the info required. The Internet has already become a huge advertisement market helping to increase sales. That’s why use internet videos whenever you need to present your goods or even simply to explain anything to your customers.

News sites are becoming much less like journals and rather more - television. CNN.com and espn.com allocate for the video the best place on the pages, often prompting users to watch the ad before reading. Even the Wall Street Journal has accentuated in its player and two news releases live every day.

The common reason of such behavior, of course, is money and ads. While in all other categories of ads the budgets are reduced, video advertising is booming. News sites add more videos to catch rapidly growing demands of advertisers and get more profit.

Interest in the video reflects the changes in the perception of news by users. Major events, whether it is presidential elections or the demise of Michael Jackson, significantly enhances the number of video browsing, and every time some person from new comers becomes a constant visitor of the site.

“Every major event makes the video more popular than ever before” - said Charles W. Tillinghast, president of msnbc.com, a joint company of NBC Universal and Microsoft.

General Manager Mr. cnn.com K.C. Estenson commentated the situation in more detail: “Now people use the Internet other way. Broadband access has become more widespread and more and more websites with video become accessible, so that people already wait that it will be video on the site.”

According to comScore, the websites of magazines The New York Times, Gannett and Tribune reach a million hits of video streams every month. In this case, news sites reply for a small share of the 25 billion video streams considered by comScore monthly. According to reports, in September in the section “news and information” it was 500 million video views. The largest players in this segment were msnbc.com (162,000,000) and cnn.com (148,000,000).

But even if we disregard the news sites, nowadays video is the fastest growing segment of online ads. According to figures from Interactive Advertising Bureau, in the first half of 2010 digital video has yielded $ 477 million of income that is on 38% more than during the same period. Dominating in the market is search ads with the number of $ 5 billion over the first half of 2010, but increase of this segment is comparatively small.

Analysts expect that in future the tendency of inflow of money in the segment of video ads on the Internet will save. Research firm eMarketer suggests an increase in the segment by 35% -45% each year over the next five years and achievement of the mark of $ 5.2 billion in 2014 (though the search advertising will not be bypassed by video, the projected number for 2014 for search advertising - $ 16 billion).

In its forecast for the following five years, eMarketer say that video advertising will become the “main channel” which will enlarge the expences of major advertisers.

Quite often we face the situation when we want to present goods, products or services. While considering the best way to do that, I would recommend using internet videos. Video presentations have proved their effectiveness already. Thus, if you are want to try this, visit this internet videos site - there you can find all the info required. The Internet has already become a huge advertisement market helping to increase sales. That’s why prefer internet videos whenever you need to present your goods or even simply to explain anything to your customers.

Video Marketing - is a new, simple, inexpensive and effective tool that allows you to:

Increase the flow of new customers to your business;

Lower the expenses of their search, recruitment and closing of the deal;

Increase the number of repeat sales;

Shorten the advertising budget …

How?!

It is created many systems that will help you increase your business profits with less time and money costs. It is a simple, cheap tool available to anyone using which you will be able to attract free flow of users to your site and transform them into buyers.

You may learn to create educational video courses for your customers, employees and partners, with the help of which you are able to demonstrate how to use your product, rather than to explain manually. You can search such courses on the Internet and to find the one which will be understandable to you.

If you look carefully, you’ll see that small and medium-sized businesses in various areas have been successfully promoting their products and services to the Internet via video.

The reasons for the rapid development of video marketing on the Internet are obvious:

There is no better way to attract the attention of the user on the Internet than the video. Attention is worth money. The more attention the client pays to your company, the more money he would bring to it.

Not every holder of small business can afford to purchase advertisement on TV or on radio. To distinguish advertisement in the newspaper or in a popular niche journal among competitors, it is necessary to invest a lot of resources, both monetary and creative.

TV and radio advertising covers too broad audience. It is designed for consumer products and for reinforcement of the company’s brand.

On the Internet you are able to send your marketing message only to those people that you need which correspond to the profile of your target audience and who are interested in obtaining information from you.

You can appreciate the effectiveness of your action with mathematical precision. This let optimize an advertising campaign very quickly, timely considering the reaction of the market, adjust your actions and, consequently, to save budget.

To distribute videos is inexpensively.

With the development of technologies to create and spread video on the Internet is becoming easier and cheaper. Effectiveness of the applying of video in direct-marketing, email mailings increases the response in many times compared to the textual materials. After all, it is no secret that humans perceive information through the 5 channels of perception (hearing, seeing, feelings, smell, taste), and video, in contrast to text, impacts immediately on two main ones - the auditory and visual.

Thanks to it you can report your marketing message to the final consumer not only with words but with the help of the body, eyes, smile, filling the communication with your audience with human warmth and emotions.

People buy goods based on emotions at the people and companies they like and whom they believe. And, if you are not able to communicate personally with your client, what could be better than the video appeal over the Internet during sales and consultations? Using video allows you to address “individually” simultaneously to thousands of people!

Often we come across the situation when we want to present goods, products or services. While thinking of the best way to do that, I would recommend using internet videos. Video presentations have proved their effectiveness already. Thus, if you are want to try this, visit this internet videos site - here you can find all the info required. Online network has already become a huge advertisement market assisting to increase sales. That’s why prefer internet videos whenever you need to present your goods or even simply to explain anything to your customers.