Online video gross media spend totaled $2.12 billion in 2008, up 36% vs. 2007, and is forecast to continue double-digit increases through 2010 at a moderating rate, according to an industry-wide analytics report from AccuStream iMedia Research.
The research report, “Online Video Media Spend: 2003 – 2010,” calculates multiple ad sales components corresponding to annual growth from 2003 – 2010 by avail unit: Pre-roll (short and long-form execution), in-banner video, overlays, in-game, podcast, player display and skins.
Additional findings from the research:
- Pre-roll inventory expanded by 12.6% in 2008 to 18.75 billion total avails, following a 16.8% uptick in 2007.
- Accustream forecasts a 27% growth in pre-roll inventory in 2009 and 2010 because of offsite media exploitation, including video search, indexing (primarily premium content hosted inside UGC networks), syndication (Hulu, VEOH etc.), content and player embeds and distributed content curation/syndication
- Onsite pre-roll inventory was capped in 2008, with average publisher/onsite insertion frequency, reduced by 13.7% during the year resulting in a 1.5 ratio
- Pre-roll averaged $25, and premium pre-roll avails averaged $35 in 2008.
- Ad network inventory (remnant, run-of-site) on average fell by 13.3% in 2008 to $13 because of aggressive pricing, particularly during end of month sales cycles.
- In-banner video impressions delivered grew by 65.4% in 2008 and are forecast to grow by 20% in 2009 and 17.5% in 2010.
- In-banner video impressions averaged $11, down 26.7% in 2008, with volume buyers either buying upfront, or going for scale and reach
- In banner platforms captured 79% of total media spend made against online video (excluding direct sales of pre-roll avails).
- Online video advertising networks, platforms and applications represented total inventory of 17.9 billion avails per month in 2008.
“RFP velocity remained strong throughout Q408, and while there are patches of caution, Q109 closings are performing well,” said Accustream’s research director Paul A. Palumbo. “Video spend that followed audiences in 2008 are flowing to people, measurability, allocation efficiency and accountability in ’09. Digital appears positioned to grow through the current economic cycle by attracting more ROI buyers.”
About the research: The research was conducted between August 2008 and early January 2009. The report aggregates and separates media spend delivered though video platforms, VASP applications, direct sales teams, rep firms, ad serving engines, distributed or viral campaign management, search, discovery, curation, video indexers, and super syndicators. The research report quantifies current, forecast and historical CPMs for all inventory formats attending monetization of online video. Media spend is typically allocated and bought 30 – 60 days in advance.