Newspapers run with local video advertising

If you think local television stations or cable networks are having the best results with local online video advertising, think again. According to a new report, newspapers have hit paydirt with online video before local TV stations have.

by Kristina Knight

According to the report from Borrell Associates, newspapers captured $81 million from local online spots in 2006. Television stations only had about $32 million in local video advertising last year. This is another indication of how newspapers are harnessing the cross-over power of the Internet in their efforts to keep old readers and draw in new. Local television stations are also getting in to the act. They are appealing to newspaper audiences by offering online classified advertising on their websites.

As the competition for the local market becomes even more hard to crack, you can expect these local services to become even more competitive. Local online video is one bone that all local advertisers will begin to fight over. The report indicates that the biggest fight will be over which local outlets can capture the biggest percentage of automotive advertisers for their platforms. After automotive, the draw will move to real estate, health and employment sectors.

The local video advertising market is expected to grow from $161 million (in 2006) to $371 million this year.