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Studies: streaming ads to reach $3.1B; cable ups ad spending

Sun, 06/17/2001 - 8:00pm
Anne Kerven

Spending on all streaming-media-enabled advertising will grow to $3.1 billion by 2005, up from $44 million in 2000, according to the Yankee Group. The growth will be fueled by higher fees from on-demand marketing and increased residential use.

BtoBtoC Streaming Media: Helping Companies Streamline Consumer Communications says streaming advertising includes online product information and infomercials that users can retrieve on-demand. The technology would "(give) birth to a potentially lucrative environment for media companies able to connect consumers and product manufacturers during key points in the online buying process," the study says.

Users can research purchases by getting access to a selection of videos with information on big-ticket items, says Yankee Group analyst Steve Vonder Haar, who calls the technology "multimedia content that helps people get things done.

"It represents how the Web is best suited for delivering video with a purpose rather than video for couch potatoes," he concludes.

The study comes after another last week, that detailed advertising dollars spent by major telecoms. According to the CMR study, first-quarter advertising spending for all media was down 5.2 percent over a year ago.

Total ad spending fell to $22.6 billion from $23.8 billion a year ago. Second-biggest spender AOL Time Warner was up 29 percent at $382.7 million this year, with AT&T trailing in eighth place with a paltry $249.1 million, albeit 52.3 percent higher than a year ago.

Still, cable TV (up 6.6 percent) and syndication (up 5.5 percent) both showed a healthy increase in revenues for the quarter, CMR reports.

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