Today’s Wall Street Journal has an awesome article about Video ads and discusses MSN’s early dominance. The article states:
“MSN’s early success positions the portal to benefit from the explosion in online video advertising now under way. It also raises questions about Google Inc.’s ability to maintain its stranglehold on Internet advertising.”
“Advertisers say there aren’t enough ad spots to go around. A June study by McKinsey & Co. estimates that 80% of video inventory was soaked up in 2005 and that demand is likely to rise five-fold next year, outstripping current supplies. “Whenever we create more inventory, the sales force can sell it instantly,” says Rob Bennett, general manager of MSN Video. “There’s a tremendous demand.””
“Jason Zajac, general manager of social media at Yahoo, says Yahoo currently runs banner ads only on the home page of video.yahoo.com, Yahoo’s page for homemade videos, which are vetted by Yahoo editors. Mr. Zajac says that Yahoo hopes to be able to offer 15- to 30-second ads inside user-created videos soon.”
“At the same time, portals are keeping an eye on Google. The search giant stumbled in an effort to move into video early last year.”
It’s interesting to see people questioning Google’s potential in this area so early in the game. Just like mobile marketing, the premise that Google will dominate is being questioned very early here.