Convergence of Internet Marketing and Video
| posted by Bill KeeverThe Internet has become the world’s most powerful communication tool that, until recently, has relied solely upon text, pictures, and limited video (constrained in a box) to connect with internet users. In 1992 the World Wide Web consisted of less than 1000 websites worldwide. Today it is estimated that there are over 2 billion websites worldwide. According to recent statistics, there are over 30 million small businesses in the US alone vying for customers over the internet. The install base for Broadband (high speed) Internet access also continues to increase, with the United States ranking ninth in the world in terms of overall broadband penetration. As a result, the advent of E-commerce and Internet Communication is rapidly increasing. A recent report by Forrester Research showed online spending in the U.S. is projected to grow to $329 billion by 2010. All of these key indicators highlight the importance of the internet and its increasing impact on business.
"Consequently, significant growth and profit opportunities exist in the internet and wireless communications based video marketing industry over both the short and long term, especially with regard to the growing demand for online video content," says William Keever, President of NetGreeters Company. A recent article by the Associated Press entitled “Demand for Video Reshaping Internet,” explained that the largest growth in internet traffic has been the growing popularity of video.
A recent Market Intelligence Report released by Internet Research Firm Broadband Directions[ (the “Broadband Report”) stated that, “Broadband-delivered video represents a paradigm change for all of the players in today's video distribution value chain. For the first time in history, video content providers have the technical ability to deliver high-quality video directly to their intended audiences, without a business relationship involving a third-party distributor.” In fact, the most recent Alexa.com statistics show that three of the five most trafficked websites are those that feature video. Broadband's open distribution capabilities are spurring content providers to launch direct-to-consumer broadband video initiatives. These activities are having a huge impact on the video distribution value chain, and are raising significant demand for video distribution solutions in a broadband-enabled world.
While the demand for online video is growing, so is the demand for online marketing tools by businesses. BtoB’s 2008 Marketing Priorities & Plans Survey found that 80% of all respondent companies planned to dramatically increase their budgets for internet related marketing, with many respondents reporting up to a 33.8% increase in their online marketing budgets.
The majority of the internet marketing budgets will be directed towards email, SEO and web-site video. The BtoB Survey stated that the online areas that will see the greatest increases in 2008 are email (70.1%), search engine optimization (64.3%) and web-site video (39.5%). The primary reason for the increase in email, SEO and video related marketing is the fact that these methods have proven to have a much higher reported return on investment (ROI). In fact, in response to the growing demand for video content, companies intend to direct a significant portion of their online marketing budgets toward internet video related marketing. The recent MarketingSherpa’s Search Marketing Benchmark Guide for 2008 reported that companies are targeting their online marketing dollars to address the growth in video marketing. The MarketingSherpa’s survey also stated that much of this increased budget would be directed toward video email and search engine marketing. In addition, much of the existing online marketing dollars are being redirected toward video, email and SEO and away from “pay-per-click,” banner advertising and traditional media.
While there are digital asset and video management systems currently in the market, these systems are really no more than video library applications, and provide little to no video distribution capabilities. Too address the problem of distribution; NetGreeters has taken traditional video management from a specialized digital asset repository, to a workflow solution that helps enterprises actually deliver digital assets to help achieve sales and business goals. The NetGreeter system emphasizes the delivery of video content across multiple marketing mediums, targeting specific populations, demographics and end-users.
With the industry is racing toward online video marketing, we believe NetGreeters is perfectly positioned to capture lucrative market share. The Company has developed a dynamic video insertion system that directs marketing dollars to high conversion existing and prospective customers. The NetGreeters technology provides intelligent and optimized insertion of video marketing via email, web-sites, mobile communications or within a video stream. Patent-pending technology securely and automatically distributes video content in real-time based on publisher-defined rules that include variables such as IP addressing, user authentication, current and historical viewer session time, video clip length, and other web-based demographics.
For more information, see www.castleventure.com.
