Home » Ad & Media Strategies » AccuStream Research: Online Video Apps and Platforms Score $494.7 Mil. in ’08 Revenue

AccuStream Research: Online Video Apps and Platforms Score $494.7 Mil. in ’08 Revenue

Otilia Otlacan | January 28, 2009

MARINA, Calif. – Online video applications, platforms, advertising networks and related services tallied $494.7 million in 2008 revenue, up 86.7% over 2007.

VASP, video CMS and ad network revenues combined are forecast to increase by 41% in 2009 and 38% in 2010, according to a far-reaching online video services and analytics report published by AccuStream iMedia Research.

The report, Online Video Applications and Platforms: 2007–2010, unites the spectrum of extant video applications and platforms, and aligns them in relevant product category groupings.

Product groups include video overlay applications, advertising platforms, CMS platforms, platforms with inventory sales, search with inventory sales, integration services, indexing and metadata libraries with media sales.

Each product category is analyzed by business model (or models), entrants, revenue, participation structure, gross media spend delivered by platform, trends, account totals and media suite capabilities.

VASPs are integrated product packages with business units built to achieve profitability through scale, rapid response and increasingly, automation.

The top four VASPs are in-banner video advertising platforms (including Eyewonder, Eyeblaster, Pointroll and DoubleClick), and as a category generated an estimated $225 million in net revenue in 2008.

The following ten VASP providers had combined revenue estimated at $194.3 million, and include industry leaders such as Brightcove, Tremor Media, BBE, Worldnow, thePlatform and Internet Broadcasting.

An additional nineteen providers analyzed in the report generated 2008 revenue estimated at $74.4 million.

The VASP market is evolving, however. Video advertising platform total share is forecast to decline from 45.6% in 2008 to 35.6% in 2010.

Video services (including transcoding, custom player design and widgets) are forecast to grow from an 8.5% share in 2008 to 10.7% in 2010. Video indexing and metadata support is forecast to grow from 3.9% share in 2008 to 9.3%.

“VASPs are selling an ROI model in 2009, which plays well in a tight economy by focusing on ways to save clients money,” commented research director Paul A. Palumbo.

“Whether that’s more efficient allocation of marketing spend supporting strategic video publishing online or increasing paid media placement, VASPs are betting with their business models they can deliver better content performance.”

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.

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