Online video gross media spend totaled $2.12 billion in 2008, up 36% v 2007, and is forecast to continue double-digit increases through 2010 at a moderating rate, according to a US 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 available unit: Pre-roll (short and long-form execution), in-banner video, overlays, in-game, podcast, player display and skins.
The research also found that 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, 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.
Paul Palumbo, Accustream’s research director, said: “RFP velocity remained strong throughout Q408, and while there are patches of caution, Q109 closings are performing well.
“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.”
UBS recently revised down its global ad spending forecast for the year, with the new estimate putting online revenues at 1.4% growth in 2009, down from 10.4% (see UBS downgrades global ad forecast).
A ZenithOptimedia forecast, meanwhile, predicted that UK ad spend would rise to 1.5% in 2009, buoyed by 16.8% growth in online (see UK ad spend forecast to fall 0.8% this year).
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