Xothner is the code name for blip’s advertising statistics system.  It collects data about advertising (number of ads served, what videos they were served on, how much they’re worth) and places that data in our database to report to content creators and to our advertising operations and product team.

Xothner had a hiccup last night that caused under-reporting of advertising impressions and revenue.  We’re correcting the hiccup this morning and you should see an increase in your advertising statistics by this afternoon.

That said, we’d like to provide you with an update on blip’s advertising programs.

In the fourth quarter of 2008 we blew the doors off.  Revenues rose almost 150% quarter-over-quarter in the fourth quarter.  This quarter is tougher for a few reasons, notably because spending for first quarter 2009 was being planned while banks around the country were collapsing.

We’re still in the early stages of the video advertising market.  There’s no other way to say it.  Some days, some weeks, some months you’re going to enjoy amazing revenues — enough, for some folks, to seriously consider quitting their day jobs.  Other days, weeks and months revenue will shrink.

These changes in revenue — this roller coaster, if you like — is not necessarily indicative of any long-term macro- or microeconomic trends.  They’re the natural swings of an immature market.  You should, for the time being, avoid quitting your job.  Save the money you make from blip.  Invest it.  Save for rainy days, and enjoy the days when sunshine pours out and the river of cash flows.

Over here we’re planning for a solid March, and we believe we’re going to have an excellent second quarter.  Every single advertising agency we’ve worked with has done a larger follow-on buy with us, and we’re proud to say that all of our advertising customers are happy customers.  

We’ve also been putting a lot of work into a new suite of advertising products that we’re just starting to roll out.  We now have specific advertising products for the automotive, retail, insurance and movie industries.  There are more on the way.  And we’re measuring and reporting and optimizing more than ever — in fact, we believe more than anyone else in the space.

In 2009 video advertising will be all about finding value for and delivering value to advertisers.  We’re uniquely positioned to do this in a better way than most, and we’ll be taking full advantage of that position.

This particular game is a marathon.  It’s not a sprint.  We’ve been at this for three and a half years and we’re going to be at this for a number of years to come.  And every day we get closer to realizing our dream: Making it possible for independent show creators to build sustainable businesses.