The Promise of Web TV and Video Advertising

Internet TV is proving to be an important revenue driver for large Hispanic and Latin American portals.

For Terra, Internet TV was responsible for 17% of total online advertising revenues in 2006 and has more than 8 million unique visitors per month. “Our forecast for the end of 2007 is to achieve 25% and 15 million, respectively” says Fernando Madeira, CEO Terra Networks.

Online video advertising is also growing fast. “The audience too and the advertisers will follow this trend. The response to online video campaigns is amazing and the brand awareness achieved pushes the advertisers to invest heavily in this format." is looking to enter internet TV and web broadcasting, and will be rolling out a major fortification of its video capabilities in the coming months, according to CEO Robert Stearns. He points out that the long-awaited arrival of internet TV is at hand because of advances in the technology involved.

Whereas before, online broadcasting was very costly due to the high amount of bandwidth needed to send out the signal to tens of thousands of users, the new technology allows the broadcaster to send out one signal that users can tap into, using less bandwidth, and therefore costing much less money to execute.