Home » Ad Operations » AccuStream Research: Online Video Media Spend Tops $2.12 Billion in 2008; 22.5% Growth Forecast in ’09

AccuStream Research: Online Video Media Spend Tops $2.12 Billion in 2008; 22.5% Growth Forecast in ’09

Otilia Otlacan | January 22, 2009 | 1 Comment

MARINA, Calif. – 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 an extensive industry wide analytics report published by AccuStream iMedia Research.

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, AccuStream is 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 research director Paul A. Palumbo.

“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.”

AccuStream Research (http://www.accustreamresearch.com) is a video, audio, download, subscription, VASP application and broadband advertising research firm.

Otilia is the founder and editor of AdOperationsOnline.com, launched in 2008. She currently provides online business consulting through her company, RightFit Media, and blogs about all things online at www.otiliaotlacan.com.