Wi-Fi TV Launches Largest Sales Team Selling Online Video Ads as eMarketer Projects Online Video Ads to Surge 89% in '07

Market Wire, March, 2007

Wi-Fi TV Inc. (PINKSHEETS: WTVI) now has in place the largest independent sales team selling both online video ads and Internet TV Stations; and, research firm eMarketer projects that ad revenue from online video will reach $775 million this year, an upward revision from its previous estimate of $640 million. By 2010, online video ad spending will soar to $2.9 billion, or 11.5% of all dollars going to online ads, according to a recently released report.

"No other company hosts an Internet TV, user video and social networking website and has assembled an independent sales force offering global Internet TV stations and online video ads, with ad placement on Wi-Fi TV and other leading websites," stated Joe Soto, a national sales manager for Wi-Fi TV Inc.

Bruce Clary, writing for SearchEngineGuide.com about the future of online video ads, states:

"There is no doubt that as broadband penetration multiplies, and both video technology and ad serving technology advance, most major advertisers will want to use this branding strategy because of its ability to engage viewers."

Online Video Engages Users

A study by F. N. Magid Associates for the Online Publishers Association shows that consumers engage with video advertising as follows:

--  5 percent of consumers view online video daily
--  24 percent view once a week
--  46 percent view once a month
    

"While many are attracted to humor, video news clips are most popular, with each genre being viewed by more than 25 percent of visitors at least once a week," Mr. Clary reports.

"Online video ads have great potential on the web and are particularly appealing to a young, wired demographic. As online videos become more popular on user-generated sites like YouTube, the audience for video ads will increase, as will the number of video ads created," Mr. Clary concludes.

Video Entertainment Factor

"People are drawn to video because it is entertaining. Video popularity has grown with the proliferation of broadband," states Mr. Clary.

Online Video Ads Work

The community of online video watchers is growing. ComScore reported that the number of consumers viewing videos online increased 18 percent between October 2005 and March 2006. The early adopters who watch are very engaged with the advertising they encounter, especially when it is relevant to their needs.

The above mentioned Online Publishers Association study conducted in February 2006, surveyed a representative U.S. population sample of 1,241 Internet users aged 12 to 64 and reported the following:

--  40 percent clicked a link or visited a web site mentioned in the video
    ad
--  34 percent went to the advertiser's web site
--  15 percent requested product information
--  14 percent visited the store to check out a product
--  10 percent forwarded the ad to a friend or family member
--  8 percent made a purchase
--  Average viewing time spent with a video ad was 21 seconds
    

The above findings show the power of video ads to engage viewers.

Video Viewer Demographics

The study found that frequent viewers of online video are more likely to be young, male and affluent. These heavy viewers were 65 percent male with an age mean of 33 years, putting them in the coveted 18 to 34 demographic. Eleven percent had household incomes of $100k/year, and over 80 percent had broadband at home and at work.

Heavy Video Viewers Engage

The heavy viewer profile differed from the norm. For instance, 50 percent of heavy viewers visited a web site mentioned in the video ad, versus 40 percent for the total sample. Up to 45 percent of the heavy viewers went to a search engine to find more information on an advertised product, whereas only 33 percent of total viewers did so.

For the complete article by Mr. Clary go to www.SearchEngineGuide.com

Writer Julian Smith, in an article entitled "Online Video Ads: Think Web, Not TV", states, "Online video advertising is really taking off. As broadband penetration continues to rise and ad-serving technologies become more sophisticated, more advertisers are adopting the format. According to a recent Jupiter Research executive survey, 24 percent of online advertisers planned use streaming video ads in 2005, nearly three times the percentage that ran them in 2004.

"Online video ads allow marketers to capture users' attention and to stand out from the crowd in an increasingly ad-cluttered online environment. They potentially can have a much greater effect than GIF banners or text ads... Using video also means the same, or similar, advertising creative can be displayed online and on TV. This offers marketers, half of whom use the Web to extend integrated campaigns' reach or frequency, a greater consistency of brand messaging across channels," Mr. Smith reported.

Wi-Fi TV Is a Pioneer In Online TV

Wi-Fi TV Inc. has long touted the coming convergence of TV and the Internet, and provided the first online movie in December 1995. The Wi-Fi TV web site is the only place on the Internet where you can watch hundreds of TV stations and chat with others watching the same program in a live chat box directly under the viewing screen, and get breaking news for each country and category listed, and download a dialer and make free phone calls all on one web site.