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Streaming media (audio and video) advertising is forecast to reach $1.37 billion in 2007, up 38% over 2006 revenue, according to “Streaming Media Advertising 2003 – 2008: Market Spend by Avail, Brand and Content Category,” by AccuStream iMedia Research.

AccuStream’s top-line report findings and analysis:

  • Some 2.1-2.7 billion streams/progressive download views per month inside professional, ad-supported or free content areas are sold (excluding user-generated video) against inventory averaging 1.4-1.6 billion pre roll avails..
  • The market size for both streaming audio and video advertising is estimated at $990.3 million in 2006, up 128% over $433 million billed in 2005 (see data graphic below)
  • The market is forecast to grow by 40% in 2007 to $1.38 billion
  • Internet radio gross ad billings are forecast to reach $66.4 million in 2007, up by 60% over 2006
  • Pre roll is forecast to make up 26.7% of gross video ad spend in 2007 (not including pre roll or interstitial units sold against long form content), and 28.5% in 2008
  • By contrast, embedded units make up an estimated 58.8% of gross billings in 2007, and forecast at 55.9% in 2008
  • Gross pre roll ad billings are estimated at approximately $36 – $43 million per month in 2007
  • Of the approximately $319 million in estimated pre roll video advertising that took place in 2006, 31.9% was placed against news, 28.4% against music and 12.8% against sports content
  • Major online and offline broadcast brands range in pre roll revenue generation from several hundred thousand dollars per month to $5+ million per month
  • The $420 million pre roll annual estimate includes for 2007 $360 million from pre roll placed against short form content, and $60 million placed against long form broadcast TV shows published online
  • Based on demand indicators, including high sell out rates, rich CPMs and trained cross-platform sales teams, inventory sold against long-form TV shows published by major networks will grow substantially over the next few years.
  • In-game video ads are forecast to grow faster than the overall market.
  • UGV is expected to generate noteworthy ad dollars, particularly from embedded video placements, but continued hesitation on the part of brands and agencies to tackle the chaos of the category suggests incremental steps toward mainstream exploitation.
  • CPC (cost per interactive click) applications which enable screen over lays and or crawls are being deployed and finding some traction, and could become regular features on larger aggregated catalog sites such as Amazon.com, music video sites and premium content sites published by the networks.

About the study: “Streaming Media Advertising 2003-2008: Market Spend by Avail, Brand and Content Category,” breaks down the multiple revenue components driving growth for the period 2003-2008, both by video category (including UGV) and Internet music radio. The report rates, prices and quantifies avails, including pre roll video, in-stream video, audio gateways, audio in stream, embedded ad units, in game video impressions, CPC and more by year.

(via MediaPost)

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