A new report by Borrell Associates on online video advertising finds that newspapers selling video advertising are making more money than local TV stations.

In 2006, says the "2007 Local Online Video Advertising" study, newspaper-run websites received approximately $81 million in "locally spent streaming-video advertising, while local TV broadcasters captured about $32 million, suggesting that print media are "using the Internet as a crossover platform to tap traditional TV advertisers."

While nearly all local broadcast TV websites now feature classified ads, says the study, almost half of all newspaper sites offer video, and so do cable, radio, and yellow pages directories.

This trend is part of a larger change in local Web advertising away from banner ads and paid listings.

Borrell predicts that the competition between newspapers and TV stations will intensify as both develop Web-based video products, with the prime targets being autos, health, employment, and yes, real estate.

Welcome to the age of the Internet infomercial or Webmercials.

Local video advertising is still a relatively small market, but consider how it is projected to grow in only one year -- from $161 million in 2006 to $371 million in 2007. While that's still only five percent of the money spent on all local online advertising, and less than half a percent of all local advertising, the popularity of the medium is growing, along with the applications. Borrell predicts that in five years, local online video advertising will surpass $5 billion, or 33 percent of all local online advertising.

"Where will that money go? Not to the purveyors of the traditional "word from our sponsor" commercials," says Peter Conti, senior vice president Borrell Associates Inc. "but to those who can offer long-form video information that their website visitors actually choose to see."

How does real estate fit in?

"One of the areas we see the most potential for a business category to be ahead of the curve is the real estate industry," says Conti. "They are already used to getting their face out to the public and advertsing on websites particularly newspaper sites, and they use virtual tours, so this is a natural progression for them. The top Realtors realize the importance of this type of advertising. They're right for this format."

Conti says that local online video Webmercials are the perfect look-at-me medium. "This is going to become a big area with agents, and big teams, a way to showcase themselve they have not been able to do before," he envisions. "If they can capture attention on a preroll (introduction) before a home tour about their knowledge -- get to know me, click here -- it's an opportunity for a lot less money than broadcast TV."

In addition, agents are turning to the Web as a means of delivering more value to the homeseller, suggests Conti. "Real estate is an $11 billion ad category in flux, and that's for all advertising," he says, "and the only place that will see a positive gain is online."

Unlike TV ads, which are purchased by stations, shows and times, online Webmercials are targeted to an interested audience. Anyone who wants to see content such as listings, for example, will sit through a preroll by a company, broker or agent first, much like current news channels such as CNN and MSNBC. If you want to see the video, you see the sponsor's commercial first.

Where this will play out, says Conti, is on local media websites. "You can go to a targeted area looking for a particular type of home, and an agent that handles that area will pop up before you get into the search," says Conti.

Welcome to the new age of Internet advertising.

Editor's note: to purchase the full report, go to borrellassociates.com.

Published: February 14, 2007

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.