Summary
Marina, CA. Online video gross media spend totaled $2.12 billion in 2008, up 36% over 2007, and forecast to continue double-digit increases through 2010 at a moderating rate, according to the extensive industry wide analytics report.
The research report, Online Video Media Spend: 2003-2010, calculates multiple ad sales components corresponding to annual growth 2003-2010 by avail unit: pre-roll (short and long-form execution), In-banner video, overlays, in-game, podcast, player display and skins.
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.
Pre-roll inventory expanded by 12.6% in 2008 to 18.75 billion total avails, following a 16.8% uptick in 2007.
However, significant changes are taking place inside pre-roll inventory. First, insertion frequency for onsite experiences was capped at 1.5 (content views per avail) on average in 2008, reduced 13.7% from 2007.
Second, we are forecasting 27% growth in pre-roll inventory in 2009 and 2010 due to offsite exploitation through syndication (i.e. Hulu and others), and powerful indexing engines that find, categorize, store, package, amplify and distribute enhanced professional and semi-professional video.
Third, enhanced video verticals and accompanying metadata libraries are integrating with ad sales and distributed media platforms aggregating search, discovery, curated and brand produced infotainment video and monetizing it.
In-banner video impressions grew by 65% in 2008, and accounted for $1.5 billion in gross media spend. Video buys made through rep firms totaled $90 million in 2008. Overlay executions associated with video added $37.6 million.
"RFP velocity remained strong throughout 4th Quarter 2008, and while there are patches of caution, 1st Quarter 2009 closings are performing well," commented our research director.
"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."
Table of Contents
Executive Summary 1
Online video media spend totals $2.12 billion in 2008
Historical and Forecast Online Video Media Spend Growth 2004-20101
Premium, pre-roll video CPMs in 2008 on par with 2007
Pre-roll inventory expanding, 12.6% growth in 2008
Online video advertising networks, platforms and applications represented total
inventory of 17.9 billion avails per month in 2008
In-banner video impressions delivered grew by 65.4% in 2008; forecast at 20% in '09
In-Banner Video Impression Growth: 2003-2010
Overview 4
Introduction to Online Video Advertising: 2003-2010
Online Video Advertising Terminology
Video Advertising Performance and Trends: Media Spend, Market Dynamics, Emerging Solutions and Innovations
Video content libraries are expanding onsite and offsite to meet advertising demand6
Sales/RFP velocity, performance and trends: 2008-2010
PERFORMANCE: Online video ad spending grew by 36% in 2008, and forecast to
grow by 22.5% in 2009, 28.2% in 2010
Historical and Forecast Online Video Media Spend Growth 2004-2010
Video Content and Pre Roll Paid Media Ratios: 2006-2010
Pre-Roll Media Spend 2003-2010 Percent Total Online Video Spend
In-Banner/In-Page Video Spend 2003-2010 Percent Total Online Video Spend
CPM Comparison: 2007-2008
TRENDS: Efficiency, accountability and granular measurement applications attract
brand marketers zeroing in on user behaviors across the spectrum of viewer orientations
from simple product search to product purchase intent
Gross Media Spend Share As Delivered By In-Banner Video Platforms: 2008
TRENDS: Innovative advances are being made in content player platforms, playback
experiences, offsite library exploitation, discovery of and access to enhanced video
libraries, better engagement metrics and monetization spending allocation
Gross Media Spend Share as Delivered by Video Platforms: 2008
TRENDS: Video indexing/metadata enhancement and search amplification are
expanding static content libraries, making them more interactive, while integrating with
ad networks and solutions providers to create more desirable inventory and new
revenue growth mechanisms
Video Search Gross Media Spend Share: 2008
TRENDS: Relevancy/ROI metrics that take brand video messaging beyond one-and-done
interruptive messaging
TRENDS: Exploitation of UGC/Hosted Network Environments improve
UGV Media Spend as a Percentage of Total Spend: 2007-2010
TRENDS: Growth in 3rd party ad network sales forecast through 2010
Combined Ad Network Media Spend 2006-2010
TRENDS: Greater visibility inside media organizations of 3rd party ad sales and
serving platforms
Video Ad Network Media Spend Share: 2008
TRENDS: Market expansion and reach improve through standardized, flexible and
feature-rich content management systems and platforms
Gross Media Spend Share As Delivered By Video Platforms: 2008
TRENDS: Overlays gaining traction, visibility and attracting media dollars
Video Overlay Application Gross Media Spend Share: 2008
TRENDS: Viral components to campaigns emerge as a verifiable, performance driven
extensions of distributed paid placement
SECTION ONE23
Online video media spend totals $2.12 billion in 2008 23
Online Video Gross Media Spend: 2003-2010 23
Online Video Spend 2003-2010 24
Historical and Forecast Online Video Media Spend Growth 2004-2010 25
Pre-roll insertion frequency drops by 13.7% in 2008 to 1.5 content views per video
impression 25
Video Content and Pre Roll Paid Media Ratios: 2006-2010 26
Premium, pre-roll video CPMs in 2008 on par with 2007 26
CPMs: 2007 and 2008 Comparison 26
CPM Comparison: 2007-2008 27
New video inventory categories, avail formats and ad network success helped drive
media spend in 2008 27
Gross Media Spend and Share Analysis 29
Pre-Roll Media Spend 2003-2010 30
In-page video impressions jump 65.2% in 2008; more growth forecast in '09 and '10 30
In-Page Video Impressions 30
In-Page Video Impressions Served: 2003-2010 31
In-Page Impressions 2003-2010: Linear Regression Analysis 31
In-Page Video Media Spend: 2003-2010 32
In-Banner/In-Page Video Spend 2003-2010 32
Ad networks continue to gain share of video media spend; forecast at 18% in 2009 33
Combined Ad Network Media Spend 2006-2010 33
UGV environments are increasing share of video spend; forecast at .8% in 2009 33
UGV Media Spend As A Percentage Of Total Spend: 2007-2010 34
Online Video Media Spend: 2003-2010 35
2003: Pre-roll inventory averaged 250 million avails per month 35
2004: Pre-roll inventory averaged 325 million avails per month; 4 billion in-page
impressions delivered 36
2005: Pre-roll inventory at 580 million avails per month; 15 billion in-page video
impressions delivered 37
2006: Pre-roll inventory of 1.2 billion avails per month; 42 billion in-page video
impressions served 38
2007: Pre-roll inventory of 1.44 billion avails per month; 82.7 billion in-page video
impressions served39
2008: Pre-roll inventory of 1.56 billion avails per month; 108.6 million monthly long-
form pre-roll avails41
In-Game Video Avails: 200843
2009: Short-form pre roll inventory forecast at 1.72 billion monthly; long-form at 263.2
million per month44
2010: Online video gross media spend forecast at $3.3 billion46
SECTION TWO48
Pre-roll inventory expansion being accelerated by distributed library management, offsite applications and exploitation 2008-2010 48
Pre-roll inventory expanding, 12.6% growth in 2008 48
Pre-Roll Inventory and Media Spend 48
Pre-Roll Video Media Spend: 2003-2010 49
Pre/Mid Roll Inventory Utilization Summary: 2008 50
Pre-Roll Video Inventory: 2003-2010 50
Ad networks increase visibility and share of pre-roll inventory sales: 2008-2010 51
Ad Network Pre-Roll Media Sales 51
Pre Roll Media Spend: In-House vs. Ad Network Sales 51
Pre/Mid Roll Video Advertising Inventory, Sales, CPM and Revenue
Worksheet: 2008 52
SECTION THREE 56
Online video advertising networks, platforms and applications represented total inventory of 17.9 billion avails per month in 2008 56
Media Spend by Delivery Platform 56
Online Video Platform, Network and Application Gross Media Spend: 2008 57
CPMs bought against online video ranged from $2-$30 across both platforms and
networks 57
Online Video Platform, Network And Application Gross Media Spend: 2008 58
The in-banner video platform segment is highly concentrated, home to very large
media serving engines 60
Gross Media Spend Share as Delivered by In-Banner Video Platforms: 2008 60
In-Banner Video Advertising Platform Media Spend: Gross Media Buys 2008 60
3rd party ad networks and content platforms with ad sales expertise account for $172
million in online video-related media spend in 2008 61
Video Ad Network Media Spend Share: 2008 62
Video Advertising Platforms and Media Sales: 2008 63
Content management platforms aggregate 750 million video views, and 615 million
advertising impressions per month in 2008 64
Gross Media Spend Share as Delivered by Video Platforms: 2008 64
Video Platform Gross Media Spend: 2008 65
Overlays associated with online video reach $67 million 2008 (including VideoEgg's
/CPC/CPE pricing model) 66
Video Overlay Media Spend: 2008 66
Video Overlay Application Gross Media Spend Share: 2008 66
Video Overlay Application Gross Media Spend: 2008 67
Video Search Gross Media Spend Share: 2008 68
Video search at $21 million in revenue in 2008 68
Video Search Gross Media Spend: 2008 69
SECTION FOUR 70
In-Banner Video Platforms 70
In-banner video impressions delivered grew by 65.4% in 2008; forecast at 20% in '0970
In-Banner Video Impression Growth: 2003-2010 70
In-Page Video Impressions Served: 2003-2010 71
In-Page Video Media Spend: 2003-2010 71
In-Page Impressions 2003-2010: Linear Regression Analysis 72
Gross Media Spend Share As Delivered By In-Banner Video Platforms: 2008 72
In-Banner Video Advertising Platform Media Spend: Gross Media Buys 2008 73
In-Page/Banner Video Advertising Platform Profiles 74
Q & A 74
EYEBLASTER 74
EYEWONDER 79
POINTROLL 84
SECTION FIVE 89
Video advertising platforms and media sales 89
3rd party advertising networks represented 1 billion video avails per month (on a non-
exclusive basis) in 2008 89
Advertising Networks And Gross Media Spend 89
Video Ad Networks And Gross Media Spend: 2006-2010 89
Video Ad Networks and Inventory Under Representation: 2006-2010 90
Video Ad Network Media Spend Share: 2008 90
Video Advertising Platforms And Media Sales: 2008 91
BBE (Formerly known as BROADBAND ENTERPRISES) 92
SPOTXCHANGE 97
TREMOR MEDIA 101
WORLDNOW1 09
YUME NETWORKS 112
SECTION SIX 115
Video content and advertising platforms 115
Gross online video advertising billings total $147 million delivered through major
CMS platforms in 2008 115
Gross Media Spend Share As Delivered By Video Platforms: 2008 115
Video Platform Gross Media Spend: 2008 116
Video Content And Advertising Platform Profiles/Q & A 117
AUDITUDE 117
BAYTSP 123
BRIGHTCOVE 126
thePLATFORM 130
SECTION SEVEN 136
Overlay solutions platforms and providers 136
Video overlay inventory totals 10.8 billion avails in 2008 136
Video Overlay Media Spend and Avail Growth 136
Video Overlay Media Spend: 2008-2010 136
Video Overlay Annual Inventory Growth: 2008-2010 137
Video Overlay Media Spend: 2008 137
Video Overlay Application Gross Media Spend Share: 2008 138
Video Overlay Application Gross Media Spend: 2008 139
Overlay Application Profiles and Q & A 140
ADAPT.TV 140
SCANSCOUT 144
VIDEOEGG 146
SECTION EIGHT 152
Video search and distributed inventory management 152
Video search inventory at 4.5 billion avails in 2008 152
Video Search Media Spend and Inventory 152
Video Search Media Spend: 2008-2010 152
Video Search Inventory/Requests: 2008-2010 153
Video Search Gross Media Spend Share: 2008 153
Video Search Gross Media Spend: 2008 154
Video Search and Distributed Inventory Management 155
AOL/Truveo 155
MAGNIFY.NET 158
SECTION NINE 162
Video publishers, networks and syndication platforms (professional content) 162
ASSOCIATED PRESS ONLINE VIDEO NETWORK 162
BLASTRO.COM 166
COMCAST.NET 169
COMEDYCENTRAL.COM/ATOM.COM 174
EONLINE/COMCAST NETWORKS 177
FOX/NBC/HULU 178
HEAVY.COM 180
MACROVISION/TVGUIDE INTERACTIVE 185
NEXT NEW NETWORKS 194
NFL.COM 198
TURNER NEW MEDIA ENTERTAINMENT 200
VEOH.COM 204
WEATHER.COM 209
WORLDNOW 213
YAHOO 216
VERIZON 218
