Newspapers Leverage Web Video

NEW YORK TV stations may be the experts when it comes to leveraging video on Web sites and other digital channels, but newspapers are getting the largest share of local video advertising, according to data compiled by media research and consulting firm Borrell Associates.

Last year, local newspaper sites pulled a 50 percent (roughly $80 million) share of total video ad revenue, compared to TV station sites’ 20 percent ($32 million). Other local sites combined have 30 percent of local video ad revenue ($48 million).

While newspaper video may not stand up to the quality of the local TV video, it doesn’t seem to matter to advertisers. “Newspaper sites are attaching video to online directories and they’re selling ads like hotcakes,” said Gordon Borrell, CEO of Borrell Associates.

TV stations are getting a larger share of video ad spending this year, about 24 percent, estimated Borrell. The company said TV stations would reap larger ad shares if they hire dedicated sales staffs to manage digital media sales.

Online video, which makes up only 5 percent of local advertising this year, is becoming a more prominent feature of local online ad revenue. By 2012, Borrell expects online video advertising to take 35 percent of all local online ad dollars, estimated to reach more than $7.7 billion.

Overall, TV station Web site revenue is expected to grow 55 percent to $618 million this year. On average, online advertising contributes less than 2 percent to a TV station’s total revenue, but varies by market size.

In the largest markets, ranked 1 to 20, the highest online ad spend share is 3.7 percent, compared to 13.2 percent in markets 21 to 50, 8.3 percent in markets 51 to 100 and 21.1 percent in markets 101 to 210.