It seems inevitable that ISPs currently training their guns at p2p traffic will soon start fretting over video sharing websites, which are gaining in popularity and gradually conquering more internet bandwidth. November 2008 proved to be another prolific month for online video websites. According to data released by comScore Video Metrix service, there was a 34% year-over-year increase in online viewership in the US in November. A staggering 12.7 billion online videos kept online viewers riveted to their computer screens.
Google websites accounted for 40% of the total views in that month. Google obviously has its Youtube juggernaut to thank for being in the ascendancy. Youtube contributed 98% of Google’s market share. Google websites also triumphed as far as total number of viewers goes with 98 million viewers in November.
One website that has come up by leaps and bounds is Hulu, which retained the 6th spot in the high-stakes online video market in November 2008. Hulu scored a major victory over its competitors by emerging as the website with most riveting videos as the average duration of each video viewed at Hulu was 11.9 minutes – way higher than the industry average of 3.1 minutes.
Google recently shut the door on Microsoft with a major online ads deal with Yahoo. Having warded off any possible threats to its throne in the immediate future, Google can look to consolidate its gains. And consolidate it will. Mark Mahney, financial analyst at Citibank Investment Research, expects Google to earn $1 billion from display ads alone in 2009.
Currently Yahoo is the leading player in the global online display ads industry – not to be confused with search ads - worth $22 billion annually. Google will be able to trim Yahoo’s lead in 2009 by auctioning display ads space across its bouquet of prime internet properties that includes Youtube, Google Videos, Images, Maps and Finance, and DoubleClick.
The internet juggernaut has finally solved its Youtube conundrum and will start feeding video ads to the website’s legion of video buffs. Mahney anticipates $500 million in Youtube display ads sales alone in 2009.