Eric Picard over at ClickZ network has an interested article entitled Internet Video: Imploding or Exploding? While he does not specifically answer the question posed in the title, he does offer a very insightful look at what needs to change from an advertising perspective to enable continued growth in the Internet Video market. Eric does say that in order for the nascent industry to continue to grow, we need to replace stagnant ad models and to aggregate the video that is currently spread across the net.

In terms of advertising, it seems as though that will naturally evolve as video serving sites and marketers use trial and error to determine which formats work best for different types of content: user created video, premium short content, and premium long content.

We are already seeing the aggregation of content by the big players including Google, Yahoo, and AOL. As with most new and fragmented industries this will also naturally take place in the market. With no telling who the winners will be.

In short, I would answer Eric’s question, “Exploding or Imploding?” with a definitive Exploding. I think that the market will work things out in the end, avoid any pending disaster.

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Commentary

  1. Loren Feldman wrote on 31. Jul 2006

    It is still in it’s infancy.

  2. Jim wrote on 09. Jan 2008

    Pure advertising, depending on your cash flow demands, probably won’t work in the long run. Need to tie together affiliate programs, product placement and direct sale schemes to make any money.

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