Report: Newspapers Top TV with Local Online Video Ad Sales

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By the dollar, newspaper websites have sold more than twice as much localized online video advertising than TV station websites, says a new report from Borrell Associates.

Websites run by newspapers sold $81 million in local video ads compared to only $32 million sold by sites operated by local TV broadcasters. Borrell suggests that local newspapers are trying to capture advertisers online who have traditionally advertised on television while TV stations try to capture advertisers online who have traditionally advertised in print.

The three largest local markets, Chicago, New York and Los Angeles, are worth about $5 million each.

The research company noted that most TV broadcast now contain classified ad sections and more than half of newspaper sites provide online video. Borrell has also noticed the same crossover trend in radio, local cable and online yellow pages websites.

In 2006, the local online video advertising industry was worth about $161 million. Borrell expects that value to double this year, powered by a rising class of longer infomercial-type ads. Competition will be hot, especially in the automotive category. As online competition between newspaper and TV station players increases, Borrell estimates the industry will be worth about $5 billion by 2012.

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