Videos can be considered as inseparable part of any
website hosting.
There are many formats used for storing video, while considering it for web try to use the format which has codec that compresses it to a great level without disturbing the quality of video. File size is much important issue for web video.
Other than mpeg format you can consider using .swf format for using videos on web.
First convert your raw video to flash(.swf) than place this swf file on your webpage, today most of the user have flash installed on their computer so using flash player they can view your video.