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Many market forecasts have attempted to size the U.S. online video market, which consists of ads that are tied to a growing subset of online music, sports and entertainment clips. These forecasts project the market will grow to between US$4 billion and US$7 billion by 2012.

A TKG forecast released yesterday specifically breaks out the local portion of this. The popularity of online video has trickled down to the local level in the form of small and medium-sized business video advertising that accompanies local listings and business profiles.

Specifically, opportunity exists in the increasing segment of video production companies targeting SMBs, and growing interest among Yellow Pages publishers in adding video to their local sales bundles. Here are a few examples of what this looks like:

New York Pizza

Chicago Aquarium

California plumber

Bronx Auto Glass Shop

Providence Restaurant

Reception so far has been positive, given the general appeal of video and its simplicity when compared with other forms of online advertising (e.g., pay-per-click). Local online video for small businesses also combines the traditional appeal of television advertising with the distribution efficiencies and advantages of the Internet. For users, video in the local search environment complements listings and is watched in “lean forward” mode, as a way to assist purchase decisions and add color to listings.

Demand for video at the local level will drive Internet Yellow Pages to execute tighter sales and fulfillment. The medium’s favorable margins will further compel publishers to embrace it as a means to offset print revenue declines. For Yellow Pages publishers, it also represents an opportunity to appeal to a new set of advertisers they haven’t traditionally reached — the better part of the addressable market of 15 million SMBs in the U.S.


Related: A local video session is slated for TKG’s September Directional Media Strategies conference:

The Online Video Opportunity
Video is fast advancing as a key element of the local online advertising mix, and Internet Yellow Pages providers are jumping in with their own products. This session will explore the emergence of online video on IYPs and examine its potential growth trajectory.

This Post Has 7 Comments

  1. As a video producer my focus is moving more and more into this arena. I believe the small business market has been under served and offers some great business opportunities.

  2. I have read this post. This is very much true. Even I own a blog account on video conferencing. Video conferencing is indeed a great innovation in technology and communications. One day video conferencing will be like an ordinary house-hold item in the next 5-10 years.I will mention your post in my blog.

  3. Kelsey Group Blogs ? Local Online Video Market to Reach $1.5B by 2012…

    The Kelsey Group provides regular studies on small and medium-sized enterprises and on users, advertisers and consumers/businesses-from benchmarking data and comparative metrics, to segmentation analysis to support business and sales-planning activitie…

  4. Video is a good tool to make others to understand the concept easily what you are presenting…. The research of the video you undergoing is a fantastic and great job…. Vote of thanks for your blog and the research you undergoing….

  5. Video is a very powerful tool which can add a lot of value but if not used properly it can also hurt. I think people are starting to focus on how this tool will impact the small business area and I totally agree. The one subject that I don’t think people necessarily address is the difference between a good and bad video. Honestly, sometimes I see a bad video uploaded on Jippidy and I just tell myself that this may detract from the respective owner’s business. Cost of videography has decreased in recent years and anyone interested in a video should higher a professional.

  6. Ya video does create a much better impression in one’s mind and as for marketing, its amazing.
    Good study you’ve done..
    I ain’t gonna miss something like this..

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