Video Advertising: Will Pareto Distribution Hold?

Video advertising might be on the cusp of a major advance, at least for some ad networks and a few applications and sites, such as Hulu or YouTube.

What is not likely is that much of the revenue will be gained by smaller firms, if typical market dynamics hold. What one would have to expect is that 20 percent or fewer of the providers will get 80 percent of the video ad revenue.

That Pareto distribution, commonly thought of as the "80/20" rule, occurs normally in business and in many natural processes as well.

Not many markets, if any, ever escape a stable structure of that sort. Video advertising likely will fit into that pattern as well.

The Online Video Debate

Blockbuster Bankruptcy Coming

Blockbuster has told major Hollywood studios that it’s preparing to file for bankruptcy next month despite several pushes to expand into online and kiosk services, the Los Angeles Times reports.

Blockbuster could file for bankruptcy as early as mid-September.

LA Times: Blockbuster preps for bankruptcy after Netflix, Redbox win

Targeted Display and Video Advertising Will Grow 60% in 2011

Online ad spending growth is being propped up by targeted display and streaming video advertising, says Borrell Associates. Both targeted display ad spending and streaming video ad spending will grow by around 60 percent in 2011. In turn, spending on less-targeted ads such as run-of-site display and national paid search is poised to fall.

"There really is unparalleled ability in the past year, year-and-a-half, to be able to deliver ads targeted to that one person as opposed to whom you think might be visiting a site," says Gordon Borrell, Borell Associates CEO.

"That's peeling off a lot of the growth from run-of-site banner ads," he says.

According to Borrell, targeted display advertising will hit $10.9 billion in total in 2011. Local targeted advertising will reach $2.3 billion, while national is expected to hit $8.6 billion, the company reported. And, while national targeted advertising will grow almost 50 percent, local targeted ads will grow at an even higher rate.

"They're not buying mass anymore; they're buying niche," said Borrell.

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African-Americans, Women and Southerners Talk and Text The Most

According to Nielsen, African-Americans use the most voice minutes; on average more than 1,300 a month. Hispanics are the next most talkative group, chatting an average of 826 minutes a month. Even Asians/Pacific Islanders, with 692 average monthly minutes, talk more than Whites, who use roughly 647 voice minutes a month.

African-Americans and Hispanics also text the most. Hispanics send and receive around 767 SMS messages a month while African-Americans send and receive around 780 – significantly more than Asians/Pacific Islanders (384 texts a month) and Whites (566 texts a month). The voice and text results are compiled from one year (April 2009-March 2010) of mobile usage data gathered by the The Nielsen Company.

African-Americans, Women and Southerners Talk and Text The Most in the U.S.

One Million More U.S. TV Households

Nielsen says the number of U.S. TV households will grow by one million for the coming season.

That doesn't seem to portend any shift to online media, does it?

Intuit Press Release - Intuit GoPayment and mophie marketplace Offer Complete Credit Card Solution for iPhone

"The Complete Credit Card Solution" from Intuit and mophie is available for the iPhone 3G and 3GS for $179.95 at Apple retail stores and soon on Apple.com. It allows merchants and others to accept credit card payments directly on the iPhone.

It works exclusively with the Intuit GoPayment App, which is available for free from the App Store.

GoPayment, including the Intuit merchant account, offers competitive pricing at $12.95 a month, a 1.7 to 3.7 percent discount rate and $0.30 to $0.34 per transaction fee. There are no long-term contracts, cancellation, gateway or set-up fees, and one account can enable up to 50 users.

Intuit GoPayment and mophie marketplace Offer Complete Credit Card Solution for iPhone

SIP Trunking Wins Because of 6-Month Payback Rule

A six-month payback project is an easy sale because it can typically be done without expending any capital (perhaps by leasing capital gear) and it usually pays for itself by the end of the fiscal year, when one would otherwise have to explain being over budget.

In fact, a number of IT professionals tell me their company only invests in IT projects with paybacks of six months or less.

That makes SIP trunking an easier sell than most.

The Six-Month Rule