Newspapers sell more local online video ads

A new report predicts 43% growth for local online video advertising in 2007, but the medium making the most isn't television. According to the report, newspapers are actually selling more online video ad revenue than broadcasters are.

by Kristina Knight

According to the Borrell Associates report, local online video brought in about $161 million in 2006. The report predicts that number to increase to $371 million this year.

Newspapers sold the most local videos last year with $81 million in revenue. Comparatively, television stations sold only about $32 million in local online ads. Why are print publications leading broadcasters? According to the report, newspapers have latched on to the Internet faster than broadcasters in an effort to raise their sagging revenue lines.

However, with a new report from the Television Bureau of Advertising showing online television revenues increase by 41% in 2006 that trend could flip again, leaving television in the driver's seat with local online video. A full 80% of television broadcasters said they expect to sell more local online videos this year.

They key to gaining more online revenue isn't just about selling ads, though. Broadcasters and newspapers must also have fresh content - blogs, vlogs and pictures - to intrigue consumers. If traffic to their websites does not show growth, local advertisers will likely go to greener pastures with their ad dollars.