Kelsey Group: Local Online Video Ad Revenues To Reach $1.5 Billion

Local advertisers are going to be increasing their use of video in the coming years. According to a new forecast from The Kelsey Group, local online video advertising revenues will reach $1.5 billion by 2012. To give that number some reference in 2007 local online video advertisers spent just under $11 million.

by Kristina Knight

Small and medium sized businesses will help lead more marketers to online video because they are seeing how consumers are adopting video platforms. The report indicates that online video will represent just over 11% of small and medium sized businesses online budgets by 2012.

Yellow pages publishers and online agents geared toward helping these businesses create compelling advertising have a huge opportunity in the coming years. More advertisers interested in video means more ads will need to be created and more platforms made simple for marketers who don't have huge budgets.

In March, The Kelsey Group released a user-based video study. This report showed that 62% of consumers have seen an online video ad. Nearly half of those respondents said they saw the ad on a website, 19% reported requesting information based on an online video ad and 18% went to a store to get more information about the product advertised. Nearly 20% of consumers said after viewing an online video ad, they made a purchase.