Internet videos can be "a very straightforward way for a company to demonstrate the value of the products and services it offers," according to Forrester Research analyst James McQuivey. Before diving in, though, here are five questions to consider:

1. How much will you spend?
Internet videos can be produced cheaply—and low production values can be part of the charm of a series like K-Tec's "Will It Blend?". Investing Hollywood-size budgets in video production can lead to executive disapproval if a big audience doesn't materialize.

2. How will you hook your viewers?
Whether the intended audience is employees, customers, or partners, Web videos need to be short and to grab the viewer within the first 30 seconds. Just like changing a channel on TV, it's easy to close a video window or click the "stop" button.

3. What format will you choose?
Popular formats for delivering video online include Adobe's Flash, Microsoft's Windows Media, and Apple's QuickTime. Most companies are opting to standardize on one format. Flash seems to have an edge, since it plays on most platforms and is the standard chosen by YouTube, the dominant video site on the Internet.

4. Will you host it on your servers, or enlist a third party?
Third party hosting services such as Brightcove or Revver can help ensure that videos are always available—even when their popularity spikes.

5. How will you measure the impact?
It's important to set realistic goals about what video will achieve and to put in place tracking systems to tally not just how many times a clip has been seen, but what action it inspired (like requesting more information, looking up a distributor's location, or making a purchase).