Why MVSP Technology

Online Video the next Killer Application
Online video is becoming the killer application of the Internet as B to B marketers embrace it as an integral part of their marketing programs (using it in such disparate formats as 15- second banner ads and long-form documentaries (B-to-B, The Magazine for Marketing Strategists 4/2/07)

Spending on Video Formats Triple
Spending on online video formats will more than triple in the next three years according to research company e-Marketer (growing from $775 million this year to $2.90 billion in 2010)

Television and internet Marketing Converge
As elements of television and the Internet converge for both advertising and content, testing new methods of video delivery and marketing are more the rule than full-play campaigns. By 2010, one in ten dollars devoted to Internet advertising will go for video placements.

• Advertising Experiments & Exploding Content 
  The Internet video revolution is truly underway. Statistics show this trend to be the fastest growing and perhaps the most important and far reaching-trend online today. Estimates projects video ad spending will soar 82.2% this year and 89.0% in 2007.
  
  
• By 2010, online video advertising spending will total $2.35 billion, up from $385 million in 2006. This, an 82.2% gain over last year's $225 million figure.
  
  
• A whopping 63.6% of all US Internet users in August 2006 streamed some video online, equating to 110 million people.

What’s Fueling this growth?
Online video advertising outperforms other online formats for branding. Based on 106 campaigns, Dynamic Logic's Q3 2006 MarketNorms data shows online video ads delivered a 6.1 percentage point improvement in aided brand awareness; a 18.1 percentage point improvement in online ad awareness; and a 9.3 percentage point improvement in message association.

Online Video Makes it happen
Focusing on the interactivity associated with online video advertising, Double Click's "Video Ad Benchmarks" study examines over 300 campaigns in 2006. Among the salient findings:

• Higher ad interaction. About 8 percent of the video ads, on average, generated some form of user interaction with the ad unit, including expansion, video control buttons, custom interactions, and clicks. The most frequent action was ad replay (0.32 percent), which occurred more often than clicking through a standard JPG or GIF ad (0.10 percent).

• Longer ad viewing. Video ads played about two-thirds of the way through on average, regardless of whether the unit was an expandable or standard video ad format. Most units were :30 spots.

• More click-throughs. Online video ads had higher CTRs (define) (0.40-0.74 percent), about four times the rate for image ads (0.10-0.15 percent). Users were taken to the advertiser's Web site or landing page. For Double Click Research Director Rick Bruner, this is important as it means online video advertising drives direct response activity.

• About 90 percent of the units in this research were in-page rather than in-stream, highlighting context's importance. Since these ads are highly visual, interactive elements on a text page, they tend to stand out, spurring more interactions.