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Online Video Advertising – How did it all begin?
August 7, 2008

A decade ago, in 1998, two guys called Mark Cuban and Todd Wagner sold their company Broadcast.com to Yahoo for a not so modest $5.7 billion. Many people in the industry argue this was the event that put online video on the mainstream map for the first time.

Whether or not you agree with this sale being a milestone for online video advertising, you will surely agree that the first years of the 21st century saw plenty of troubles in the online world. Valuation bubbles burst, and all things digital had to regroup in order to survive. As many of the industry leaders restructured, they also launched pilot programs for online video advertising tools - everyone from Microsoft, Yahoo and MSNBC explored this new arena together with hungry blue-chip advertisers.

Then somewhere around 2005, something happened. Up until that time, most had agreed the future of online video was in subscription-based scenarios – suddenly advertisers stepped in to financially support the business model, changing everything. Their strong participation allowed an unprecedented growth in online video – everyone from broadcasters to user generated video content sites launched an unprecedented stockpile of digital video entertainment, and audiences welcomed their efforts with open arms.

Since then, video compression and high-speed internet has continued to propel digital video into the mainstream. Media agencies, advertisers, broadcasters and corporations do their share in supplying this revolution with funds to continue growing. The sale of Youtube.com for monstrous sums of money in 2006 provided another milestone; drawing increased attention to digital video in the same way Broadcast.com had 8 years earlier. Only in 2006, everyone in the industry was already invested and engaged, so any leaps forward were - if anything - more informed. But ultimately, we advertisers have to remember that it is of course the users that have made it all possible to keep video on the front pages of every self-respecting media source in the world.

As online video advertising continues to grow rapidly, we are sure to soon see some exciting, transformational events. So keep your eyes and minds open!

See you soon!

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