The local video advertising market in the US is estimated at $161m in 2006 according to a new report, but is predicted to grow rapidly and account for a third of all online video advertising by 2012. (A free executive summary can be obtained here).
This is good news for both local newspaper's web arms and for services such as ITV Local if they can replicate this trend in the UK.
However, one finding is surprising - that infomercials are the way forward in terms of ad content; the reality is that many Narrowstep customers such as Cycling TV are actually reporting that shorter slots - 10 or 15 secs work best, whilst the findings from Narrowstep's Statserver show that, surprise, surprise, the 30 sec slot remains dominant.
I think the reality is that, just like with car selling magazines and computer mags, the more relevant the advertising, the closer it becomes to being content, and then longer form programming is possible.