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Newspapers beating TV sites to video revenue

Borrell Associates is releasing a new report today that reveals that newspaper sites grossed $81 million in local video advertising in 2006, compared to $32 million for local TV sites. “Print media are using the internet as a crossover platform to tap traditional TV advertisers, just as stations (and others) are trying to use the internet to tap traditional print advertisers,” reads the report. Terry Heaton calls it “an absolute stunner.” Just consider for a moment that local TV has been at the forefront of video innovation for decades — until now, when we’re facing the greatest revolution in video to date. Portals (and other pure plays), network/cable sites, newspapers and even video blogs are beating local TV sites in video innovation and revenue generation. How important is video? Borrell goes on to predict that video advertising will skyrocket to make up one-third of all local online advertising in 2012, just below paid search:

But it’s not the traditional :15 pre-roll that will generate most of the revenue, but long-form advertorial video that’s associated with key verticals such as real estate, health and automotive. Isn’t it interesting in the history of business that companies that believe they have the most expertise in something are the most likely to fall behind in times of tremendous change? Let’s hope local TV wakes up to the fact that we need to take large, aggressive steps to catch up in online video, from technology to original content to sales.

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