Borrell Associates reports that newspapers are beating out local TV in local video revenue. In fact, they also report that IYP’s, who sell advertorial video to SMBs, are poised to pass local TV as well.
I’m surprised for a couple of reasons: 1) local TV already has clients who run broadcast ads, hence, it should be an easy 1-2 punch to sell existing advertisers on “packages” that extend their reach online; and 2) local TV sales folks “get video” and marrying video to the performance metrics of online should make for an easy sale.
The cable companies, on the other hand, are making traction. Borrell notes how they are targeting video ads down to the zip and neighborhood level. And they certainly have digitally smart local sales people who know how to sell video.
My conclusion: there are lots of local media publishers who can play in the online video ad game but are at different stages in doing so.
To me, the report is less about who is winning today and more about the rich opportunity all local publishers have to take what they have: a local sales force, existing advertisers, great local content, and ad inventory they can sell themselves at a premium, and generate big time online ad revenue with video.
The current year aside, everyone is still bullish on online advertising revenue growth and how video will help to fuel it for years to come.
Nonetheless, the point is clear: to be a player, you first have to get on the field.
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