This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Video Ads Get Shorter

When demand for online video advertising began to skyrocket about a year ago, companies responded by putting their 30-second television commercials on the Web. Bad idea.

Consumers tuned out the pricey spots, forcing advertisers and Internet sites to cut the time of their commercials in half. Now, some are even shorter.

"There are more 15-second ads than there were a year ago," says Elicia Brand-Leudemann, national director of in-stream video networks for, an advertising network owned by Time Warner's (TWX) AOL. "The push toward the shorter commercial sports is coming from the publishers. It's because they are getting an increased annoyance rate from their users."

Keeping users interested in online video is critical for companies like Yahoo! (YHOO) and Microsoft (MSFT) as more advertising dollars flow online from traditional media. Advertisers like video content because it keeps users online longer than they would be otherwise, and are willing to pay top dollar to advertise on it.

Online video ads are a potential bright spot for both Yahoo! and Microsoft. Shares of Yahoo! are down almost 25% this year, amid growing investor concerns about competition from Google (GOOG). Microsoft, whose shares have fallen 2%, is boosting spending to try to gain ground against Google as well.

Yahoo!, the Web's most visited site, is working with marketers to figure out what types of video ads are most effective, the company says. Like other sites, Yahoo! has been increasing the amount of video content it offers in response to demand from advertisers. Plus, these sites, and Google, are facing competition from upstart video site YouTube.

Many advertisers are finding that consumers will tolerate advertisements if they are placed before content they think is worth the wait. Still, it's more challenging for advertisers, who sometimes wait for months to get ads on popular sites, to get their messages across to consumers in short time increments.

"The Web is evolving the way people consume both content and advertising -- we have definitely seen positive results when running shorter ads that are tailored to the online viewing experience," says Rob Bennett, general manager of video and entertainment services for MSN, in an email statement.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,063.61 +9.90 0.05%
S&P 500 2,092.58 +3.81 0.18%
NASDAQ 4,811.8050 +4.9460 0.10%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs