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Gartner Says Advertising Revenue for the Protail Video Market Has Potential to Reach $1.5 Billion by 2012


Traditional Content Creation and Distribution Businesses Under Threat as Protail Video Thrives

STAMFORD, Conn., Protail video is becoming one of the fastest-growing segments of the online video marketplace, according to Gartner, Inc. Analysts said protail video is offering consumers a wide range of higher-quality niche content and providing advertisers a safe, targeted inventory in which they can place ads.

The amount of protail content has grown as much as 600 percent in the past year, despite a complex distribution labyrinth and fragmented monetization opportunities. Worldwide protail advertising revenue is expected to total $75 million in 2008, and grow in excess of $1.5 billion by 2012. This segment will offer advertisers in search of targeted noncopyrighted video inventory a major placement opportunity.

Protail is defined as the segment between professionally produced content and user-generated content and consists of the short clips that make up the majority of content on such sites as YouTube and Metacafe. Typical traits include higher-quality production and content produced in a more consistent or episodic manner.

“Essential to protail reaching these advertising revenue figures is the establishment of effective networks that connect advertisers to large protail communities,” said Allen Weiner, research vice president at Gartner. “These Web 2.0 communities may be established around the vast expanse of protail content, with videos ranging from sitcoms to travelogues or large horizontal slices of this content, for example, a site specifically devoted to French cooking. These communities will become ‘clean, well-lit’ places that are comfortable both for advertisers and for consumers looking for selection and tools for sharing and recommendations.”

As protail content becomes more mainstream, some niches are gaining greater popularity than others. According to leading protail creators and syndicators, some of the current hot areas include how-to, scripted sitcoms, scripted dramas, new forms of reality programming, niche news and lifestyle content (travel, food/cooking). In some cases, protail producers with an eye toward ad revenue will reach out to potential sponsors and ask for topic/content ideas, with a possibility of preproduction ad agreements or product placements.

The Screen Actors Guild strike, which began November 5, 2007, inspired writers to look into alternative creation and distribution scenarios for their work, which would afford greater control and a larger cut of the revenue. “Dr. Horrible" a Web show created by striking writers, is an example of video content created by industry professionals seeking greater control in both distribution and monetization. A one-week run on advertiser-supported netted more than 1.1 million streams. According to leading video community sites, digital studios can create four-minute protail episodes for between $2,000 and $5,000.

“With protail’s explosive growth in the sheer amount of online content, a few market dynamics need to harmonize for it to reach its full potential,” Mr. Weiner said. “A more fluid distribution network or series of networks that brings content creators together with advertisers looking to spend money on well-produced niche content would benefit those with strong video production skills who lack an understanding of Web 2.0 content syndication.”

“Today’s distribution model tends to favor YouTube because it has become the place for creators in search of eyeballs. Sites such as YouTube and Yahoo Video lack a means for consumers to easily identify protail content within their large video mix and do not offer uniform partner programs for protail creators in search of either ad revenue or a strong promotional presence. Companies in the forefront of the protail distribution market stand to reap the benefits of bringing together advertisers in search of targeted, rights-ready video with these new protail creators.”

Additional information is available in the Gartner report “Protail Video’s Future Growth is Tied to Harmonizing Distribution and Monetization " The report is on Gartner’s Web site at

About Gartner:
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit


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