Summary
Tucson, Ariz. Pre-roll video advertising billed against professional online inventory (short and long-form content) is forecast at $560 million in 2009, and increase of 31.6%, according to this report.
The report, Pre-Roll Video Inventory and Media Spend: 2003-2010, presents a rigorous, analytics-based appraisal of historical, current and forecast market value attached to the pre-roll avail, comprised of total views, insertion ratios, inventory, sellout rates and CPMs that anchor gross media spend estimates.
Spending is detailed by site, brand, aggregated brand, and across content categories including television, entertainment, kids, news, sports, music and movies. A breakout between direct and 3rd party/remnant placement is examined in depth.
Pre-roll avails are on track to rise 27.5% in 2009 to 23.9 billion, paced by longer-form TV publishing, offsite exploitation (i.e. Hulu, Crackle,Veoh and increasingly competitive representation boosting sellout rates among second and third tier brands.
Video indexing applications from Auditude, Adobe, DigitalSmiths and others are identifying and aggregating premium content hosted inside offsite environments, bringing that inventory forward as an exploitable package.
News content published by CNN sites, MSNBC.com, CBSNews.com, ABCNews.com, Weather.com, Yahoo and others booked an estimated 32.1% of total pre-roll spend in 2008.
Television (including serialized long-form) was the second most sold pre-roll inventory category, with a solid double-digit share. Sites with long-form content including ABC, CBS, Hulu, NBC, and others captured 72.1% of TV ad billings.
After eliminating equivalent value of intra-company video placements on Disney and Viacom sites, entertainment/kids was the third most popular pre-roll video buy, generating $116.4 million in total media spend.
Aggregated ABC/Disney brands captured an 11.2% share of pre-roll advertising in 2008; CBS earned an estimated 8.3% of interactive revenue from pre-roll billings.
Turner New Media (including Turner Sports, Cartoon Network, TBS and others) pooled with CNN Digital accounted for an estimated 10.3% share. MSBNC.com netted an 8.9% share, while aggregated Viacom brands a 6.8% share.
"The broadband pre-roll avail is firmly established as an online monetization agent. The format has evolved into a branding, information-response hybrid and sought-after execution by marketers," commented our research director.
Table of Contents
EXECUTIVE SUMMARY 1
Pre-roll inventory grew by 12.6% in 2008; Pre-roll media spend forecast to increase by 31.6% in 2009 1
Pre-roll video advertising inventory is forecast at 23.9 billion units in 2009 2
News content accounts for 32.1% of pre-roll media spend in 2008 2
ABC (including ABCNews and ABC O & Os), Turner New Media and Hulu account for a combined 30.6% of pre-roll media spend in 2008 2
Video advertising network gross pre-roll (remnant) advertising billings at $116.4 million in 2008 2
SECTION ONE 3
Pre-roll inventory grew by 12.6% in 2008; Pre-roll media spend forecast to increase by 31.6% in 2009 3
PRE-ROLL INVENTORY AND MEDIA SPEND 3
Pre-roll ads inserted on average every 1.5 video content plays in 2008; ratio forecast to remain steady in 2009 6
ONLINE VIDEO MEDIA SPEND BY AVAIL TYPE: 2003-2010 6
Direct sales teams will place 60% of pre-roll inventory in 2009 7
PRE ROLL MEDIA SPEND: IN-HOUSE VS AD NETWORK SALES 7
CPMs declined slightly across most video avail formats in 2008 8
CPMs: 2007 and 2008 COMPARISON 9
Pre-roll CPMs are still holding in the low $20 range for short-form content, low $30s for long-form content 9
PRE/MID ROLL VIDEO ADVERTISING INVENTORY, SALES, CPM AND REVENUE WORKSHEET: 2008 11
TERMINOLOGY USED IN THIS RESEARCH REPORT 13
SECTION TWO 16
News content accounts for 32.1% of pre-roll media spend in 2008 16
PRE-ROLL GROSS MEDIA SPEND: 2008 16
Long-form premium television content attracts 72.1% of gross media spend in the television category 18
TELEVISION PRE-ROLL GROSS MEDIA SPEND BY FORMAT 18
Entertainment/kids television has a lower than average pre-roll insertion ratio per content plays, and the highest level of intra-brand media placement 18
News is being monetized with pre-roll video on a one-to-one basis 20
CONTENT PLAYS PER VIDEO AD INSERTION: PRE-ROLL 2008 20
Premium pre-roll placed against long-form TV content topped CPM ranges in 2008 21
SECTION THREE 25
ABC (including ABCNews and ABC O & Os), Turner New Media and Hulu account for a combined 30.6% of pre-roll media spend in 2008 25
PRE/MID ROLL VIDEO ADVERTISING MEDIA SPEND SHARE BY AGGREGATED BRAND: 2008 26
The top twenty aggregated brands generated 94.8% of pre-roll gross media spend in 2008 28
PRE-ROLL GROSS MEDIA SPEND BY ASSOCIATED BRAND: 2008 28
Q & A 31
COMCAST.NET 31
COMEDYCENTRAL.COM/ATOM.COM 35
FOX/NBC/HULU 37
HEAVY.COM 39
MSNBC.COM 44
TURNER NEW MEDIA ENTERTAINMENT 49
VEOH.COM 53
WEATHER.COM 58
SECTION FOUR 62
3rd Party video advertising network aggregated pre-roll (remnant) inventory is in demand, but it's a highly charged and competitive sales environment 62
Video advertising network gross pre-roll advertising billings at $103 million in 2008 62
VIDEO ADVERTISING NETWORKS PRE-ROLL GROSS BILLINGS: 2007-2010 62
Tremor Media and BBE capture double-digit share of gross media spend in remnant pre-roll segment 64
3rd party video advertising networks place 24% of media bought against pre-roll inventory in 2008 65
AD NETWORK SHARE OF PREMIUM PRE-ROLL GROSS BILLINGS: 2008 65
Hosting, insertion and CMS fees playing an increasing role in remnant pre-roll network revenue 67
Q & A 71
BRIGHTROLL 71
BBE (BROADBAND ENTERPRISES) 75
SPOTXCHANGE 79
TREMOR MEDIA 82
WORLDNOW 87
YUME NETWORKS 90
