March 25, 2009
Report: Online Video Ad Networks to Reach $493 Million in 2009
By Jayashree Adkoli, TMCnet Contributor
A recent report from AccuStream iMedia Research, titled “Online Video Advertising Networks 2007-2010: Emerging and Surging,” reportedly predicts that online video advertising networks could surge to $493 million this year.
“Video advertising networks are a vital economic engine of online video monetization,” said Paul A. Palumbo, research director at AccuStream. “These tenacious, entrepreneurial networks are endemic to the broadband publishing medium, propelling video advertising inevitably onward toward greater accountability, higher ROI and wider adoption by agencies and marketers.”
The report covers video inventory and gross media spend for – both flourishing and established executions, including in-banner video, remnant or third party pre-roll sales, video overlays, video search and podcasting.
Analyzing each video advertising network vertical by total inventory (exclusive, non-exclusive, monthly and annually), the report also analyzes each video advertising network vertical by other factors such as business models, sell-out percentages, CPMs (cost per 1000) for each avail format, media spend and total revenues by network, said the research firm.
The in-banner video networks that are led by Eyewonder, Pointroll, Eyeblaster and Google’s DoubleClick (News - Alert) are inventory. The media spend and revenue generating juggernauts of the video advertising group – all combined together made more than $1.5 billion in 2008 and is anticipated to reach $1.8 billion this year, according to the report.
The report forecasts that premium pre-roll inventory like third party video networks that are aligned with major branded content including BBE, Brightroll, Tremor Media (News - Alert), YuMe Networks, Internet Broadcasting and Worldnow, will contribute another $223 million to gross media spend this year. More than 39 percent of pre-roll media buys were analyzed across competitive and rapidly-evolving sales landscape.
In 2008, the overlay network inventory had 19.8 billion total units. The report forecasts that this year it might increase by 70 percent. However, at the same time, participation revenue will be flowing back to networks like VideoEgg (News - Alert), Adapt.TV and ScanScout, which is expected to surge by 100 percent in aggregate.
Some video search networks – such as Blinkx, Truveo and Magnify.net (News - Alert) – managed to get a combined 420 million average monthly search requests last year. The report predicts that this year it might generate nearly $30 million in corresponding revenue.
The report also indicates that last year podcast inventory averaged some 84 million units per month, thereby taking in gross billings estimated at $25.9 million, which is nearly 55 percent of total paid media spend that is made against branded premium and semi-professional content categories.
AccuStream Research is a video, audio, download, subscription, VASP application and broadband advertising research firm.
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Jayashree Adkoli is a contributing editor for TMCnet. To read more of Jayashree's articles, please visit her columnist page.
Edited by Michael Dinan
