Advertising.com: 80% More Publishers Veer to Video Ads in ‘07

With its 2007 online publisher survey, Advertising.com, Inc. has
revealed that 80% more publishers support video advertising formats
this year versus last. The survey addressed the future of online
advertising revenue growth, advertiser objectives and advertising
capabilities for publishers.

Furthermore, 100% of websites that support streaming content are
monetizing it with video advertising. Advertising.com's predictions
for 2007 include publishers adding more original streaming content to
their websites, and making a move away from syndicated or
user-generated content.

David Jacobs, senior VP of publisher services for Advertising.com,
said, "Video has a lot of value for advertisers. It carries great
emotional impact like TV, yet it can be measured and can't be skipped.
That value means publishers can command higher CPMs – hence the rise
of streaming content."

The report also affirms the widely-observed trend of traditional
advertisers shifting more spending towards online, with the focus
resting simultaneously on branding and direct response objectives.

Dominance of CPM pricing models, the focus on larger ad sizes, and the
use of more sophisticated advertising formats such as video and rich
media were other findings within the report directly related to both
branding and direct response campaigns. Notably, direct response
advertising, including text links and CPC/CPA pricing, is expected to
decline in 2007.