This report provides in-depth profiles of the major U.S. online video advertising industry players. The report analyzes consumer use of online video and patterns based on key advertising demographics. Additionally, the report reviews existing business and pricing models and details major online video ad formats. Finally, the study provides recommendations for industry investors and five-year forecasts for U.S. online video advertising revenues.

Online video viewing will continue to increase at high rates, therefore advertisers, content providers, and service operators must identify the true impact of online video on the traditional broadcast and cable TV industry, said Heather Way, research analyst. While inadequate audience reach, metric standardization, and consumer affinity for traditional TV viewing inhibit immediate growth, advertisers ability to incorporate cross-platform audience targeting as well as increased content offerings via TV Everywhere initiatives drive steady, long-term online video advertising revenue growth.

Key Topics Covered:

Online Video Advertising: Strategies & Results Dashboard

1.0 Report Summary

1.1 Purpose of Report

1.2 Scope of Report

1.3 Research Approach

1.3.1 Source of Data

1.3.2 Glossary of Terms

2.0 U.S. Market Overview: Online Video Advertising

2.1 U.S. Broadband Household Growth Trends

2.2 Online Video Advertising Ecosystem

2.2.1 Advertisers and Advertising Agencies

2.2.2 Ad Campaign Management Systems & Ad Servers

2.2.3 Content Providers

2.2.3.1 Content Publishers

2.2.3.2 Content Aggregators

2.2.3.3 TV Everywhere Initiatives

2.2.4 Advertising Networks

2.2.5 Audience Measurement and Data Analytic Firms

2.2.6 Online Video Consumers

3.0 Business Perspective

3.1 Business Models

3.2 Pricing Models

3.3 Online Video Ad Formats

4.0 Implications and Recommendations

4.1 Market Conditions

4.1.1 Drivers

4.1.2 Inhibitors

4.2 Recommendations

5.0 U.S. Online Video Advertising Revenue Forecasts

5.1 Forecast Methodology

5.2 Forecast Assumptions

5.3 U.S. Forecasts 2009 – 2014

For more information visit http://www.researchandmarkets.com/research/f78a89/online_video_adver

BURLINGTON, Mass. – Burst Media, a leading provider of online advertising services, announced the signing of the Seed Corn Advertising Network as a new client of its adConductor™ ad management technology and services. The Seed Corn Advertising Network (SCA Network) has recently formed a premier vertical content network, serving more than 3,400 specialty-content web sites, organized in more than 400 channels. adConductor will provide ad serving and ad management support across this network.

The Seed Corn Advertising Network offers brand advertisers an efficient way to reach audiences online, and offers web publishers the opportunity to monetize their ad inventory with high quality targeted advertising. adConductor will allow The SCA Network to coordinate in a single system the various aspects of ad sales, delivery and campaign management. It will also allow the network to target and optimize ad campaigns to its highly engaged visitors without advertising waste.

“We are looking forward to launching “SCA Networks” – our premium ad network utilizing Burst Media’s Industry leading adConductor ad management and technology platform,” said Andrew Stern, President of Seed Corn Advertising. “In a survey of over 7 different solutions, the adConductor platform stood out as the most innovative and scalable system on the market today. With this move, we now have the ability to offer many new services and technologies to our clients such as full transparency, access to an exchange, re-targeting, network forecasting, custom RFP building tools and industry leading optimization strategies. We hope that this improved technology and more robust platform will help our network grow to the next level and are ready to offer the full suite of products to our base of over 300 advertisers.”

adConductor helps leading online companies deliver the advertising they sell on behalf of their publishers through a rich suite of targeting, campaign management, campaign reporting and billing tools. adConductor is one of the largest independent vendors of ad management technology, serving billions of ads every month on behalf of thousands of websites, ad networks, and other online publishing entities.

“There is an ongoing transformation of the advertising space and sophisticated vertical networks like the ones built by Seed Corn Advertising are taking part in the evolutionary process,” said Sean Keaveny, SVP of adConductor. “Advertising is finally moving toward the content-rich collection of sites that consumers visit and use. Advertisers who capitalize on the opportunities provided with this new approach will break through media clutter and reach the most interested consumers for their offer.”

About Seed Corn Advertising

Founded in 2002, Seed Corn Advertising, Inc (www.seedcornadv.com) is an online ad network and agency delivering over 3 billion impressions per month across its search and display networks. With over 300 advertisers and over 6,000 sites and 200 publishers in its network, Seed Corn Advertising has a robust and International reach and is highly regarded as one of the few one-stop-shops for online companies looking to reach active and qualified consumers at an affordable price. Seed Corn Advertising operates out of Studio City, California. For more information, visit www.seedcornadv.com or call 818-760-3999.

About Burst Media

An online media and technology company founded in 1995, Burst Media (www.BurstMedia.com) is a leading provider of advertising representation, services and technology to independent Web Publishers. Burst Media enables advertisers to reach finely segmented, engaged consumers as they visit Burst’s extensive number of interest-based sub-channels. Through its Burst Network and Burst Direct units, the company represents one of the broadest and deepest offerings of interest-based websites online. The company’s Giant Realm unit represents some of the leading gaming sites that attract males age 18-34. Burst also markets its ad management platform, adConductor™, which empowers content websites, online ad networks, and web portals to manage the complete process of ad sales and service. Burst Media is headquartered in Burlington, Massachusetts, with offices throughout the United States and in London, UK. For more information, visit www.BurstMedia.com or call 781.272.5544.

LOS ANGELES – the Rubicon Project, the Internet advertising infrastructure company, issues a manifesto, Principles of a REVVolution – the ad server is dead, that takes direct aim at the current leaders in the ad server technology market, and details plans for the company’s new publisher-centric digital advertising technology and data platform, engineered exclusively to empower publishers to monetize content and data across all digital media, in every geographic region where their audiences consume media, and at every tier of inventory, from premium inventory to inventory that goes unsold.

“The balance in the marketplace today favors the demand-side, which has lead to significant price erosion for publishers; this erosion threatens the sustainability of the ad-supported digital publishing business. Ad serving technologies currently available to publishers of high-quality digital content are outdated, making it extremely difficult to effectively manage today’s sales organizations,” said Frank Addante, CEO and Founder of the Rubicon Project. “Working with companies whose real goal is to access more inventory on behalf of their own advertisers isn’t in the best interest of, and may even be dangerous for, publishers. Revising that legacy technology, upgrading it, and tacking on bells and whistles isn’t enough; publishers need technology designed specifically to meet their needs.”

At the PaidContent conference in New York, the Rubicon Project revealed plans to expand its platform in 2010 to offer not only additional ad serving, forecasting, and campaign management functionality across both premium guaranteed and non-guaranteed media sales, but also technology for:

- automated demand access;
- self-service advertising sales;
- centralized publisher data platform;
- pricing intelligence & controls;
- yield management;
- channel management;
- brand, ad quality and malware protection;
- all of the above across all digital media formats – Web as well as mobile, video, email and emerging devices
the Rubicon Project has retained Allen & Company as its financial advisor to support the company’s goals. Allen & Company will work with the company, among other matters, to explore options for ongoing business growth initiatives including additional strategic acquisitions, platform expansion and continued international growth.

“It is an honor to work with Allen & Company, and to have their support as we move toward providing the industry with a complete, publisher-centric technology platform that satisfies our customers and their demand partners,” said Addante.

the Rubicon Project is uniquely positioned to deliver this publisher-centric platform as its team’s experience, history of innovation on behalf of publishers, and massive scale, built on technology that provides safe and efficient infrastructure for the entire advertising ecosystem, ensures it delivers the right choice for publishers. The company, which has raised more than $42 million in funding to date, announced year over year growth of 270% at the end of 2009, and is consistently ranked as one of the top two digital platforms in overall user reach. After pioneering ad network optimization in 2007, the company launched its REVV for publishers™ platform in 2009, combining technology, tools, access and integration to deliver a complete yield management optimization solution to premium Web publishers. 2009 also marked the company’s first acquisition, of data technology company Others Online, and global expansion into markets on five continents.

To affirm its commitment to publishers, the Rubicon Project has released a manifesto which outlines the company’s core beliefs and guiding principles as they work to achieve the goal of innovating digital advertising and data technology for publishers, to keep digital media free for consumers, and to help content flourish. To read and respond to the manifesto, Principles of a REVVolution, visit http://rubiconproject.com/manifesto.

About the Rubicon Project

Headquartered in Los Angeles, the Rubicon Project launched in 2007 with a mission to automate the $65 billion global online advertising industry. The company’s Yield Management Optimization platform, REVV for Publishers™, is engineered to accelerate revenue for premium Web publishers. Backed by $42 million in funding from Clearstone Venture Partners, Mayfield Fund, IDG Ventures and GE/NBC Universal’s Peacock Equity Fund, the Rubicon Project serves premium publishers like NBC Universal, Gannett and CareerBuilder; optimizing more than 45 billion ads each month and reaching more than 500 million unique Internet users. the Rubicon Project also helps ad sales channels around the world gain access to precise audience-segmented inventory, at broad scale.

NEW YORK – 24/7 Real Media, Inc., the leading global digital marketing company, released the latest product innovations to Open AdStream®, its award-winning ad serving and campaign management platform for the targeting and delivery of ads to Web sites. Open AdStream 7.3 introduces several new workflow enhancements that help publishers and traffickers work more efficiently, driving higher ROI through advancements in targeting and productivity.

Through an enhanced user interface and organizational structure, network management with Open AdStream becomes even more intuitive and less time-intensive. Publishers can now view and compare all their properties and creatives on one page, without having to log in separately. Innovative new functionality for traffickers also enables more than 30 creatives to be uploaded at once.

Open AdStream users can now use the convenient ‘Save and Share’ e-mail reporting tool, allowing them to personalize many different reports outlining specific information needed for monitoring, via a template and schedule of their choice. These tailored reports make publishers better able to identify campaigns that resonate, based on the metrics most important to them.

“24/7 Real Media has listened closely to our customers’ needs, and Open AdStream 7.3 includes several feature innovations to enhance their day-to-day workflow,” said Nicolle Pangis, Vice President, Product Management, Global Media and Technology for 24/7 Real Media, Inc. “We have maintained a consistent release schedule with at least one software upgrade per quarter for the past two years, something that none of our major competitors have been able to execute. Publishers recognize that deploying Open AdStream gives them ongoing access to the latest ad serving technologies.”

Open AdStream combines the powerful business intelligence of Web analytics and behavioral targeting with a world-class management platform, across every digital channel.

For more information on 24/7 Real Media and Open AdStream, visit www.247realmedia.com.

About 24/7 Real Media, Inc.

24/7 Real Media, Inc., a WPP company, is the leading global digital marketing company, empowering advertisers and publishers to engage their target audiences with greater precision, transparency and ROI. Using its award-winning ad serving, targeting, tracking and analytics platform, powerful search marketing technology and global network of specialized Web sites, the company has turned the art of reaching audiences across virtually any digital medium into a measurable science. The company is headquartered in New York, with 18 offices in 12 countries throughout North America, Europe and the Asia Pacific region. For more information, please visit www.247realmedia.com.

24/7 Real Media: The Science of Digital Marketing.

24/7 Real Media is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC. These principles are designed to help ensure Internet user privacy. For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt-out of 24/7 Real Media cookies, go to: www.networkadvertising.org.

New York, New York —Doner announced a strategic partnership with Eyeblaster for its digital campaign management in a bid to more effectively harness the micro-targeting potential of digital media for its clients. The move coincides with the launch of MediaMind, the first agency-based solution built from the ground up. Eyeblaster unveiled MediaMind on Sept. 21 at OMMA Global in New York.

The Doner and Eyeblaster pact comes at a critical time as marketers move more of their media dollars online.  The complexity of the business is accelerating daily and is fueled by changing publisher business models, creative with advanced consumer interactions, issues around data control, and overall, outdated solutions.

“Clients can’t afford to miss opportunities to reach their customers because the available technology isn’t moving fast enough to effectively use digital,” said Greg Clausen, executive VP–chief media officer at Doner.

“In our Eyeblaster beta, we saw a 30% efficiency improvement in digital media campaign management. We believe Eyeblaster’s MediaMind tool will give clients a competitive advantage.”

After more than two-and-a-half years of development, hundreds of agency interviews, and millions of dollars in R&D, MediaMind by Eyeblaster is the sole solution designed to simplify the process of digital campaigns and alleviate daily challenges for agencies to efficiently serve and manage campaigns globally.

“Our industry is choking on data, and that’s a problem when every day data is more and more central to our marketing strategy,” said Todd Riley, senior VP- digital media and integrated strategies at Doner. “Ad serving is the backbone of delivering messages to our consumers and Eyeblaster’s products allow us to better analyze performance and optimize in real-time. We’re both independent companies, and I love the fact that they can move so quickly and are pushing as hard as we are to find better solutions.”

“With Atlas and DoubleClick distracted by other endeavors, we see an opening in the market to focus exclusively on helping agencies provide more value to clients,” said Gal Trifon, CEO and Co-founder at Eyeblaster. “We wanted to build a platform that caters to agency needs and enables them to create and manage campaigns that scale with the complexity of today’s digital marketplace.”

“Creatives also are excited about the potential for their work to become more contextually relevant,” said Mr. Riley. “Eyeblaster’s Mac friendly development platforms along with automated content version tools solve the context problems as media gets more targeted and audiences more fragmented.”

For more information on MediaMind by Eyeblaster, visit www.eyeblaster.com.

About Eyeblaster

In 1999, Eyeblaster was among the pioneers in rich media communication. Today, Eyeblaster extends its inventive heritage in digital advertising to ad serving and global campaign management. As the leading provider of digital advertising solutions, Eyeblaster empowers marketers to engage consumers online. The company’s flagship product, MediaMind, is the only ad serving and campaign management solution built from the ground up for agencies and advertisers. MediaMind includes critical functions that simplify campaign process, enable cross channel analytics, and streamline integration with other technology components. Headquartered in New York, Eyeblaster has 36 offices across all major markets worldwide.  This footprint allows Eyeblaster customers to deploy global campaigns with guaranteed service levels, publisher acceptance and integrated metrics.  The company is the only publisher-independent provider in the field, as well as the only one certified for compliance with the three IAB measurement guidelines: ad serving, video and rich media.

In 2008, Eyeblaster delivered campaigns in a variety of ad formats including rich media, in-stream video, display, search and mobile for over 7,000 brands serving approximately 2700 agencies across over 3,600 global web publishers in 45 countries worldwide. Learn more at: http://www.eyeblaster.com.

About Doner

Doner, based in Southfield, Mich., is the largest independently owned advertising agency in the world, with approximately $2 billion in combined billings. The agency has offices throughout North America, as well as in London, and does business in more than 30 countries for clients including Mazda, The UPS Stores, The Coca-Cola Co., Serta, ADT, Choice Hotels International and HGTV. A full-service, performance driven agency, Doner focuses on creating ideas that will have a demonstrable impact on its clients’ business. For more information, visit www.donerus.com.

SAN FRANCISCO – OpenTV Corp. (NASDAQ:OPTV), a leading software and technology provider of advanced digital television and advanced advertising solutions, announced that OpenTV EclipsePlus, its campaign management technology, went live at Suddenlink Media, the advertising division of Suddenlink Communications, a leading US operator of cable broadband systems. OpenTV EclipsePlus will manage all of Suddenlink’s local ad sales operations for the operator’s Central and Western U.S. ad sales divisions.

“Our decision to upgrade our ad insertion platform was a major undertaking which required a solution that is capable, scalable, and reputable and OpenTV delivered with great technology and great service making this the best technology transition we’ve had,” said Kevin Stephens, Suddenlink’s Senior Vice President of Commercial & Advertising Operations. “With our more than 2,700 channels of insertion, we needed a system that could manage a significant number of channels and EclipsePlus was the solution of choice. We are now well-prepared to support our growing ad sales operations with a solution that has already demonstrated many advantages.”

“This new deal demonstrates OpenTV’s expanding footprint in US cable and establishes EclipsePlus as the premier campaign management solution for large enterprise installations, such as Suddenlink,” said Paul Woidke, OpenTV’s Senior Vice President and General Manager, Advanced Advertising. “It once again demonstrates the advanced capabilities EclipsePlus can offer for large implementation data center deployments and division back-office systems and we’re delighted to bring our technology to one of the country’s top MSOs.”

OpenTV EclipsePlus will enable Suddenlink to efficiently monetize the real-time data exchange between the sales and inventory management systems. Through its advanced capabilities and scalability, OpenTV EclipsePlus can handle thousands of local and interconnect networks, schedule complicated channel environments and run multiple DMAs within a single database, thereby reducing manual workload and time spent running verification and billing reports on spot buys. OpenTV EclipsePlus also features a dynamic scheduler that continuously analyzes current and upcoming schedules in order to optimize yields.

About OpenTV

OpenTV is one of the world’s leading providers of advanced digital television solutions dedicated to creating and delivering compelling viewing experiences to consumers of digital content worldwide. The company’s software has been integrated in more than 133 million devices around the world and enables advanced program guides, video-on-demand, personal video recording, interactive and addressable advertising and a variety of enhanced television applications. OpenTV’s campaign management solutions currently provide advertising services to more than 34 million cable subscribers across the United States representing more than 55 percent of the subscriber base of the top ten MSOs. For more information, please visit www.opentv.com.

NEW YORK – MediaCom announced a partnership with Eyeblaster, the leading independent provider of integrated digital advertising solutions, to streamline its campaign management and reporting capabilities. Working with MediaCom, Eyeblaster will provide 3rd party ad serving support for Lifeline, Mediacom’s proprietary campaign management solution, to ensure the delivery of digital advertising inventory across channels, and bring better accountability and scalability to integrated campaigns.

“As the industry matures, our clients’ digital initiatives are becoming more complex and multi-platform. By partnering with Eyeblaster, we feel we are better able to provide our clients with seamless, verifiable reporting for the customized, integrated digital solutions provided through Lifeline,” said Lowell Simpson, Sr. Partner, Media Systems and Technology. “We feel Eyeblaster shares our commitment for innovation and accountability, which allows us to better deliver the efficient and accurate reporting that our clients demand.”

According to a recent study from Eyeblaster and TNS on the state of digital advertising, nearly 12% of media and advertising agency executives already compare cross channel performance data, while about 50% of marketers cite that they’d like to do it more often, but rarely do because of related complexities in the process as well as a general lack of confidence in the numbers and metrics.

“Technology can play a much more substantial role in addressing today’s advertising challenges,” said Gal Trifon, CEO and Co-founder at Eyeblaster. “We are excited to be working with Mediacom on improving cross-channel communication and meeting the growing demand for better ROI.”

The research conducted around the state of digital shows that marketers expect total digital marketing spending to grow by 30% in the next two years with a third of the market experiencing growth over 50%.

For more information, visit www.mediacom.com or www.eyeblaster.com.

About Eyeblaster

In 1999, Eyeblaster was among the pioneers in rich media communication. Today, Eyeblaster extends its inventive heritage in digital advertising through Ad Campaign Manager (ACM). ACM enables interactive agencies, advertisers and publishers to manage campaigns across digital media channels, including online, mobile and in-game, and a variety of formats, including rich media, in-stream video, display and search. ACM is a robust, integrated and easy-to-use platform that allows customers to focus on campaign strategy, creativity and media efficiency without having to worry about the technical complexities associated with managing global advertising campaigns online.

In 2007, Eyeblaster delivered campaigns for nearly 7,000 brand advertisers serving approximately 2,500 ad agencies across over 2,700 global web publishers in over 40 countries worldwide throughout North America, South America, Europe, Asia Pacific, Africa and the Middle East. Learn more at http://www.eyeblaster.com

About MediaCom

MediaCom is one of the world’s leading Media Communication Specialists, with U.S. billings exceeding $7.5B (RECMA, projected 2008). Our “People First >> Better Results” philosophy drives our strategy and reflects our belief that putting People – employees, clients and consumers –at the core of our business leads to optimum business results. Our capabilities and expertise span a variety of disciplines, including: Media Strategy and Planning, Media Buying, Consumer Insights and Analytics, Business Science, MediaCom ESP (Entertainment, Sports, Partnerships), Branded Entertainment, Retail, Direct Marketing and MediaCom Multicultural. In addition, MediaCom Interaction – the digital power behind MediaCom – is positioned to help our clients successfully compete in a digitally-driven world. Our diverse client portfolio includes Allergan, Audi, ConAgra Foods, Dell (in conjunction with WPP), Diageo, Glaceau, GlaxoSmithKline, Hasbro, JetBlue, LVMH, Michelin, Nokia, Royal Dutch Shell, Royal Bank of Scotland, Staples, Volkswagen of America, Warner Bros. and Warner Bros. Home Video, among other notable marketers.

MediaCom is wholly owned by WPP and part of WPP’s GroupM, the world’s largest and leading full-service media investment management group. For further information, visit www.mediacom.com.

“We greatly appreciate continued vendor support of MSO interest in an end-to-end architecture that can support a variety of advanced advertising products,” added Don Dulchinos, Senior Vice President, Advanced Platforms at CableLabs.

“The collaborative effort by companies in this interop, as well as others in SCTE Digital Video Working Group 5, is helping to greatly refine and validate common standards for advanced advertising,” said Paul Woidke, Senior Vice President and General Manager, Advanced Advertising for OpenTV, and Chairman of DVS/Working Group 5, the SCTE committee that is working on addressable advertising.

The participating companies were ARRIS, BIAP, BlackArrow, Cisco Systems, Concurrent, Ensequence, Motorola, OpenTV, RGB Networks, Sigma Systems, TANDBERG Television (Part of the Ericsson Group), This Technology, TVN Entertainment, and UniSoft Corporation.

The vendors’ products included ad campaign managers, ad decision servers, and information systems that segment subscribers, organize content, and define advertising placement opportunities. By coming together, the vendors were able to demonstrate critical components in an end-to-end process showing how an advertisement can be selected, dynamically inserted into an on-demand programming stream, and delivered to a digital television customer. The customer responses can then be processed for fulfillment and/or aggregated (with no personally identifiable information exposed) through a common measurement format and shared with either the cable operator or the advertiser.

The week culminated with vendor demonstrations, which were observed by business and technical executives from several cable operators and programming providers, along with experts from Canoe Ventures LLC. Both SCTE 130 and CableLabs’ SaFI interfaces are elements of the Advanced Advertising 1.0 specification recently announced as a joint effort of Canoe Ventures and CableLabs.

“We are very pleased with the strong, ongoing show of support from the vendor community for the Advanced Advertising 1.0 specification,” said Arthur Orduna, CTO of Canoe Ventures. “The increasing number of compliant products and the significant progress being made by leading technology providers are critical elements to making the advanced advertising market real for all players.”

This interoperability event was the second in a series of Advanced Advertising activities that CableLabs has supported and hosted in 2008 and 2009. Using SCTE 130 and SaFI as a framework, CableLabs and participating vendors will work to further the technology to enable additional Advanced Advertising applications and to test additional parts of the standard as they near completion. Vendors who have a competency in digital ad insertion, placement or management should contact Sheila Keller, Vendor Relations Program Coordinator at CableLabs, for information on how to participate in future interoperability events.

CableLabs’ interoperability events provide vendors with an informal, laboratory setting in which they have the opportunity to test their latest products within CableLabs’ headends and testing environment, determine compliance with industry specifications, and observe the performance of their products as they interoperate with other devices in an end-to-end system. There is no charge to participate in Advanced Advertising interoperability events.

Information on all CableLabs activities focused on advanced advertising technology, along with information on industry standards, may be found at http://advancedadvertising.tv/

Founded in 1988 by members of the cable television industry, Cable Television Laboratories is a non-profit research and development consortium that is dedicated to pursuing new cable telecommunications technologies and to helping its cable operator members integrate those advancements into their business objectives. Cable operators from around the world are members. CableLabs maintains web sites at www.cablelabs.com; www.packetcable.com; www.cablemodem.com; www.cablenet.org; and www.opencable.com.