Some firms are making online videos simply because the advertising rates they can get are so good... Engaging, original shows can also help websites persuade visitors to stick around longer, so they can be shown other ads. Some firms are not motivated by ad revenues: Microsoft is making videos to distribute through its Xbox, to help sell the games console. Netflix, which made “House of Cards”, a political drama, is simply after subscribers and has no ads.
However, spending on TV spots is continuing to rise, despite the growth of internet-based advertising. Many media groups have sold packages of advertising space, combining spots on TV and on the internet. Television still attracts a broader audience than online video, and advertisers feel they understand it better. It is print that is losing ad spending to online video, says David Hallerman of eMarketer.
Many people are watching on small mobile-phone and tablet screens, on which some types of advertisement do not come across so well. Audience measurement for internet videos is not as widely agreed on as it is in TV. Hits remain elusive too.
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