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Digital video advertising is projected to rise by 41% in 2011 to $5.6 billion, according to a sector analytics report published by AccuStream Research.
The report, Digital Video Advertising: 2011 - 2014 consolidates multiple video inventory formats across platforms including in-page video executions, pre/post/mid roll, mobile video advertising, paid viral placements, overlays and podcasting.
Corresponding gross media spend for each format is presented in detail, calculated against CPMs, sellout rates, impressions delivered by ad serving platforms, or cleared through auction/mediation environments plus insertion frequencies for pre roll executions that, when combined, reveal the size and scope of the market.
Digital video media spend spiked 89% in 2010, a growth spurt triggered in part by substantial levels of YouTube pre roll inventory entering the ad ecosystem, and further buoyed by another strong performance contributed by the in-page video execution. The growth rate in 2010 was the highest seen since 2006 when the market rose by 130.4%.
The report’s four sections are segmented by inventory type. Each section details total inventory, insertion frequencies, impressions served, market and site CPMs which yield media spend. Each section contains relevant Q & A’s with the industry’s leading executives at the forefront of clearing digital video inventory.
In-page executions lead the market, on pace to generate the largest share of video spend once again in 2011, estimated at 59.2% of the gross, followed by pre roll at 29.2%, paid viral campaign placements capturing 6.5%, mobile ringing up 2.9%, overlays 1.9% and podcasting (video only) at .3%.
The report provides historical gross media spend analysis by format dating back to 2003, including sales contributions made by video ad networks.
The market remains squarely focused on transaction transparency, broadcast scale inventory, maturing mediation environments, predictive campaign analytics, sophisticated audience targeting, plus filtering and rules mechanisms.
“Digital video advertising is leading the inevitable march toward media spend accountability,” commented research director Paul A. Palumbo. “Across the inventory spectrum, additional monetization and partnership options for publishers, marketers and solutions providers are also being realized,” he added.
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