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Online Video Spend Tops 22% Growth in ‘09

Online Video Spend Tops $2.12B in 2008

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 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.

Online Video had 22.5% Growth in ‘09

Additional findings from the research:

  • Pre-roll inventory expanded by 12.6% in 2008.
  • Accustream forecasts a 27% growth in pre-roll inventory in 2009 and 2010 because of offsite media exploitation, including video search, indexing, 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.

About the research: The research was conducted between August 2008 and early January 2009 and reported in an industry-wide analytics report from AccuStream iMedia Research.