Video is proving to be a strong a media channel for businesses to advertise their message. Before Super Bowl XLVIII even started, Budweiser’s #BestBuds had been viewed on YouTube an unheard of 33 million times.

BIA/Kelsey examines these differences this week in a new “Spotlight” report using data from the recently completed Wave 17 of the Local Commerce Monitor (LCM). The report is the latest in the ongoing “Spotlight” series that drills down into the LCM data to examine how SMB advertisers acquire and retain customers.

BIA/Kelsey projects U.S. local video advertising will grow from $29.7 billion in 2012 to $38.6 billion in 2017.

The LCM Wave 17 data shows that SMBs that identify as “video SMBs” differ from those that do not use video advertising in several important ways:

— Annual media spend for SMBs that use video advertising $53,815 compared to $24,049 of that non-video advertisers.

— Among video SMBs, 55% percent plan to increase their advertising spending for the next year, compared to only 39% of non-video SMBs which plan to increase their advertising spend.

— Video SMBs are more likely to offer a customer loyalty program, compared to those that don’t use video to advertise 60% vs. 31%.

— Video SMBs are adopting other digital-based channels quickly. 5 out of the top 8 future marketing priorities are non-traditional and digital media types which include some the following: social media advertising, advanced analytics and performance monitoring, SEO, and video advertising.

Interested in learning more about LCM Wave 17 or getting a custom cut for your business? Contact Celine Matthiessen at cmatthiessen@biakelsey.com.

The post LCM Data Shows Video Advertisers Spend More appeared first on BIA/Kelsey - Local Media Watch.

Pixelfish, armed with $3.5 million round of new capital raised since October, is evolving its model from a white-label provider of affordable SMB video to a destination site for SMB offers. Today, it announced that it has acquired Steve Espinosa’s Backyard/CitySquares to act as its infrastructure.

Pixelfish was founded in 2006 and has recently settled on a model that reclassifies SMB video. Its partners include Yellowbook and Jivox.

“Combining Backyard’s revolutionary technology with Pixelfish’s software-as-a-service video creation, distribution and tracking application allows us to deliver immense value for local advertisers and consumers,” said Pixelfish CEO John McIntyre, in a release. “We know what video ads work best where for each local business.”

Backyard, a new start-up, has been ramping up quickly. It has 500,000 unique visitors in the suburban Southern California areas of Orange County and Riverside County after just a few months. It acquired Ben Saren’s CitySquares in December, and has launched an intense telemarketing-based effort.

The company is headquartered in Temecula, 50 miles north of San Diego. The new entity will be known under the CitySquares brand (it owns the www.citysquares.com, but not backyard.com. It has been using bckyrd.com, Svngr-style.)

It will have 50 employees, including 20 from Backyard, and will soon be moving into a new 12,000-square-foot facility, says Espinosa. Pixelfish, however, will retain its Torrance, California, office near Los Angeles, and its separate business.

With Pixelfish’s backing in hand, Backyard/CitySquares will be hitting affluent neighborhoods in major metro markets by April, including New York, Chicago, San Francisco and Los Angeles. It will also be launching partnerships with major media companies, initially focusing on newspapers, says Espinosa, who will be the company’s CTO (and a significant shareholder in the merged enterprises).

While terms of the sale were not disclosed, it is said to be in the range of $3 million to $5 million, consisting of cash and stock. Backyard’s angel investors included Dave McClure from 500 Startups, former Google CEO Eric Schmidt and Jason Calacanis.

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