- Traditional networks will only survive if they adopt a "voice" or point-of-view. While ESPN and MTV mean something to audiences, to the consumer, NBC, ABC, and CBS are just random assemblages of programming, signifying nothing.
- Consumers are contributing a surprising number of homemade commercials to Google Video.
- Because of rights issues, search engines will not supplant networks. Google is interested in linking off to other video networks. From Google's perspective, finding the right programming will still be a huge problem.
- MTV and ESPN are designing programming for two-screen viewing.
- Almost half of ESPN's daily audience of 4.5 million uniques watches videos on its site.
We believe business remains strong at VitalStream and expect the company to outperform our raised 1Q and 2006 estimates. We continue to believe VitalStream is the best way for investors to play the increasing demand for online streaming content, as the Internet grows as a distribution channel for interactive rich media and advertising. We are reiterating our Buy rating and raising our 12-month price target from $10 to $14.
After years of cautiously experimenting with Web marketing, powerhouse advertisers like General Mills Inc. and Kraft Foods Inc. are cranking up online spending and increasing the range of brands they promote on the Web. General Mills, maker of Cheerios and Betty Crocker baking mixes, expects to nearly double online-ad spending in the current fiscal year. Kraft, home of Jell-O and Kool-Aid, plans to double its number of online-ad campaigns in 2006 and to increase the number of brands it advertises on the Internet by at least half.
The shift underlines the Internet's threat to traditional media such as television and print magazines. It suggests that the boom in Internet advertising that has already fueled rapid revenue growth in recent years at Google Inc., Yahoo Inc. and other companies could continue as still other groups of more traditional advertisers step up online spending.
The packaged-goods companies say their customers are spending more time online and using the Web in new ways, such as watching TV shows and other video. 'Our job is to invest in where consumers are engaging with media,' says John Galloway, vice president of sports, media and interactive marketing at PepsiCo Inc.'s Pepsi-Cola North America unit. At his division, online spending is expected to rise to between 5% and 10% of the overall ad budget in 2006, from 1% five years ago.
Providers of consumer packaged goods accounted for more than 11% of the $145 billion in U.S. ad spending in 2005, according to research firm TNS Media Intelligence. But they spent just 1.6% of their ad dollars online last year, on average, compared with an overall average of 5.8% of total ad spending for U.S. advertisers, says TNS. These advertisers have been the most challenging targets for Internet companies, says Wenda Harris Millard, chief sales officer at Yahoo. That company has overcome some of their resistance by wielding new tools to show that Web ads can increase consumer spending.
These developments bode well for BlueLithium, which has focused heavily on brand-building campaigns.
VitalStream Holdings, Inc. (OTCBB:VSHI), a world leader in audio and video streaming, today announced that it has effected a 1-for-4 reverse split of its common stock as approved by its Board of Directors on March 24, 2006. Upon today’s market open, VitalStream’s common stock will begin trading on a split-adjusted basis under the new trading symbol “VSHI” (OTCBB:VSHI).