We have talked a lot about what other media companies like newspapers are doing with online video. So, what do print magazines need with online video and online video advertising? Plenty according to recent moves by Vogue who has lent its brand and a large sum of cash to develop an online reality show called Models.Live

The show cost $3 million to produce only 12 weekly, 8-minute segments and is tied into Bebo where the models connect to the audience. The show is streamed from Vogue.tv as well as Veoh and Hulu.

Express, one of the main clothing sponsors, paid hundreds of thousands to have their clothes featured and direct-linked videos to shopping where viewers can then buy the clothes they saw the models wearing.

Utilizing overlay technology the clothes the models are wearing and other products placed in the videos are clickable and link the viewer directly to the manufacturer or retail outlet so they can buy.

What does this do for video advertising?

$3 Million is a large sum of money to sink into what amounts to an online advertising campaign. Vogue is a leader in print and can drive a huge audience to such an online series. Mixing media looks to be the way of the future. Print is nice in that it is portable and can be carried around. Tying it into more dynamic content on the web could increase traffic in both directions. Getting subscribers to the website is easy as they can receive exclusive content as a subscriber as well as tie-ins to the print media. Getting web viewers to spend money is the trick.

This could be the most ambitious video advertising campaign ever by a print media outlet. It shows the power of cross-media marketing and could bring with it a whole line of new advertisers and markets. Any product that can be purchased online and many that are available mostly offline have the possibility of being a viable product placement in a web-based video series.

If this move pans out for Vogue it could lead to a stampede of clones across the entire spectrum video entertainment. Products, services, even locations could become clickable marketing tools via video overlay advertising. This could help to offset the costs involved in the creation and editing process as it has in the Vogue Models.Live situation.

It’s good for the market in general. It means more money coming into the online video advertising segment meaning more money to everyone from the creative to the publishers to the advertisers in the long run. The ROI would probably get a boost as expenses in video production are shared out across multiple companies making the investment lower for the same amount of content.

Additionally this could spring up a whole new cottage industry of intermediary companies that connect advertisers together to cooperate on video ad creation effectively becoming a business networking solution. Any video advertisement of web show could have multiple advertisers involved all sharing the cost of the content creation and placement.

Imagine a video blogger playing a Sony Music artist in the background while drinking Coca-cola with a McDonald’s bag in the frame on a Dell Computer using a Logitech mouse on the beach in Miami while wearing a shirt from Express and sitting on a table and chair available at Target.

In that one video clip there are no less than seven advertisers that would have directly clickable products in the video and that’s not taking into account an pre,mid or post-roll ad placements. This could be the driving force that brings many television shows from TV to Internet and made freely available thanks to the power and money of advertisers like you.

The major advantage is the instant interactivity which is lacking in traditional television. It could become See the product, buy the product instantly which might appeal to a large variety of advertisers.