Local.com & Jivox Partner for Local Video

Local.com is starting to integrate video from Jivox, although I couldn’t find any this morning on the site. For Jivox, this represents a major distribution partner for its local video ad network.

If integrated well, video will add value to the user experience on the Local.com site too.

As I’ve argued in the past it’s not particularly meaningful (at present) to put SMB videos on YouTube and hope they’re found. With YouTube Sponsored Videos, things may change over time. In addition, we’ll probably see local sites incorporating each other’s videos out of necessity.

As an aside, Local.com cites the Kelsey video forecast in its release: “747,000 video-enabled small and medium-sized businesses and $1.5 billion in revenues by 2012.” Assuming this is a correct statement of the Kelsey numbers, it represents an average of about $2K per year in SMB video ad spending for the numbers mentioned. (There are a wide range of products in the market and different price points of course.)

Borrell’s forecast was more aggressive: $1.2 billion in local video advertising in 2008 (but it extends beyond the pure SMB category). I don’t have Borrell’s most recent video numbers, which were probably scaled back as was the entire Borrell 2009 local advertising outlook in view of the recession.

In terms of the providers of video there are an increasing number:

  • Spot Runner (although it’s going to focus less on SMBs)
  • TurnHere
  • Spotzer
  • Spotmixer
  • Mixpo
  • Jivox

Then there are local SEM firms that are providing video, as well as a range of others (e.g., Danoo) that can offer video to SMBs on a kind of “ad hoc” basis.

In an online SMB advertiser survey done in August (n=908) by Opus Research and AllBusiness, roughly 15% of respondents responded “yes” to the question “Are you currently doing any video advertising?” (I think this number is high and pretty clearly represents an aspiration.) When one looks at companies with 0-4 employees the figure goes down to 11%, which I still think is quite high in terms of the overall SMB population. (If it were true today it would mean over a million SMBs already have video.)

When this 0-4 employee SMB sub-group is segmented out for the question “Who created your video?” the distribution of responses is as follows:

  • Friend or relative — 39.1%
  • Professional service (e.g., TurnHere, Comcast, yellow pages, Spot Runner, local videographer) — 31.3%
  • Online tools (e.g., Spotmixer, Jivox, Mixpo) — 10.9%
  • Other — 18.8% (this is mostly the owner or “me”)

Caution: small sample.

One Response to “Local.com & Jivox Partner for Local Video”

  1. SpotMixer Gains New Funding, Distribution « Screenwerk Says:

    […] began with cable TV distribution and moved online later. DIY video site Jivox has been building a video distribution network. And Mixpo, which has been positioning itself as a platform did a deal with Comcast, which has its […]

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