By Nora Macaluso E-Commerce Times
06/18/01 11:07 AM PT
On-demand marketing, according to Yankee, lets consumers see or hear ads that are relevant
to their needs.
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As more consumers gain access to broadband technology
and interactive television, a new market for the sale of
audio and video content and streaming-media
advertising is developing, according to a report
released Monday by the Yankee Group.
Yankee analyst Steven Vonder Haar said the rise of
"on-demand marketing" will be fueled by the widespread
use of sophisticated online audio and video technologies for
the delivery of content and advertising messages, resulting
in a new market sector.
"It's a market segment that can be defined as businesses in the streaming
media industry that sell audio and video tools and services to other
businesses, (which) in turn use the technology to streamline the ways they
communicate with their customers," Vonder Haar wrote in the report.
Video with a Purpose
Vonder Haar used the example of a consumer who wants to buy a new car.
Streaming media makes it possible for that person to view infomercials with
detailed descriptions of various models, narrowing the field of potential
purchases before visiting dealerships.
The technology is a way for car companies to reach consumers at the point of
purchase, Vonder Haar said.
"This is multimedia content that helps people get things done," said Vonder
Haar. "It represents how the Web is best suited for delivering video with a
purpose, rather than video for couch potatoes."
On Target
Companies are already beginning to take
advantage of streaming media, said
Yankee, which estimated that the market will grow
to US$3.1 billion by 2005 from
$44 million last year.
"A substantial opportunity exists for offering and
distributing advertising via streaming media that consumers
ask to see or hear," the Yankee report said.
On-demand marketing, according to Yankee,
lets consumers see or hear ads
that are relevant to their needs.
Stand and Deliver
Companies that can benefit from the rise of streaming-media advertising
include technology companies like RealNetworks (Nasdaq: RNWK) and Windows
Media, and content distributors like Akamai Technologies (Nasdaq: AKAM) and
Digital Island (Nasdaq: ISLD).
In addition, production and other companies that allow the ads to be broadcast are likely
to benefit from the growth in the market, according to Vonder Haar.
Other companies positioning themselves to take advantage of the trend are HiWire,
LightningCast, HitPlay and Coollink. According to the study, those companies are busy
developing approaches for selling and/or distributing online streaming media ads.
Even though the streaming media market is expected to boom, it does face obstacles.
Because streaming media only plays "a small role" in the media landscape currently, those
in the business face the challenge of attracting the attention and the spending budgets of
major Madison Avenue advertising agencies, the report said.
is developing, according to a report
released Monday by the Yankee Group.
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