Digital Video Advertising: 2011 - 2014

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.

Advertising Industry

TABLE of CONTENTS


EXECUTIVE SUMMARY1

Digital Video Media Spend (Combining all Video-Related Executions Such as
Overlays, Podcasting and Mobile) is Forecast at $5.6 Billion Market in 20111
Digital Video Gross Media Spend: 2003 - 20141
Digital Video Media Spend Rose by 89% in 2010; 41% Growth Forecast in 20112
Pre Roll Inventory Spiked by Triple-Digits in 2010 as YouTube Began to
Aggressively Incorporate and Monetize with the Format3
Mobile Video Media Spend Forecast to Grow at Triple-Digit Rates through20124

GLOSSARY of TERMS6

SECTION ONE10

Introduction and Overview: Digital Video Inventory Growth, Transaction Transparency
and Market Expansion10
Macro-Market Dynamics10
Digital Video Media Spend (When Combining all Video-Related Executions such as
Overlays, Podcasting and Mobile) is Forecast at $5.6 Billion Market in 201111
Digital Video Gross Media Spend: 2003 - 201412
Digital Video Media Spend Rose by 89% in 2010; 41% Growth Forecast in 201113
Broadcast Scale Inventory: the In-Page Video Format Continues to Capture the Largest Media Spend Share and Percentage of Digital Video Advertising14
Digital Video Advertising Media Spend: 2011 by Format14
In-Page and Pre Roll Video Media Spend Totals and Comparison: 2003 - 201415
Pre Roll Inventory Notched Triple-Digit Growth in 2010 as YouTube Began to Aggressively Incorporate and Monetize with the Format20
In-Page and Pre Roll Video Inventory Growth: 2003 - 201420
Mobile Video Media Spend Forecast to Grow at Triple-Digit Rates through201222
Mobile Video Media Spend: 2009 - 201422
In-Page, Pre Roll and Mobile Video Media Spend Totals and Comparison: 2003-201423
Video Overlay Impressions Estimated at 62.9 Billion in 201126
Video Overlay Impressions: 2008 – 201426
Viral Video Campaigns Forecast to Generate $362 Million in Paid Media in 201129
Viral/Paid Promotional Video Advertising Campaigns: 2008 - 201430
Podcast Video Inventory Forecast at 4.4 Billion Units in 201131
Podcasting Video Inventory and Gross Billings: 2007 - 201432
Digital Video Media Spend: Continued Double-Digit Growth through201433
Digital Video Media Spend Growth by Platform and Format: 2003 - 201434
In-Page and Pre Roll Video Account for 88.4% of Gross Media Spend in 201136
Digital Video Spend Share Analysis: 2008 - 201236
CPM Analysis by Format: Premium Pre Roll Steady in 201136
CPMs: 2007- 2011 Comparison37
CPM Analysis: Pre Roll CPMs Trend Down When YouTube Inventory Included in
Total Media Spend39
CPMs: 2007- 2011 Comparison39

SECTION TWO40

In-Page Video Ad Impression Market Dynamics, Solution Provider Expertise and
Campaign Engagement Focus40
In-Page Video Ad Serving Platforms Projected to Deliver Gross Media Spend of
$3.3 Billion in 201141
In-Page Video Impressions and Media Spend: 2003 – 201441
In-Page Video Media Spend Forecast to Reach $5.9 Billion by 201443
In-Page Video Ad Serving Platforms to Generate Net Revenue of $769 Million in 201145
In-Page Video Ad Serving Platform Net Revenue: 2007 - 201445
In-Page Video Ad Serving Platforms and Services: Gross Media Spend47
In-Page Video Advertising Platforms: Impressions Delivered 2008 - 201048
In-Page Video Solutions and Platforms: Business Models49
In-Page/Multi-Screen Video Ad Serving Platforms and Services: Net Revenue Analysis50
Q & A’s51
Eyewonder51
Freewheel56
Limelight Mobility and Monetization Platform61
Mediamind Technologies65
Pointroll71

SECTION THREE76

Pre Roll Video Advertising Market Primer: Dramatic Inventory Growth in 2010 –
2014 combined with More Monetization Options to Clear It76
Market Trends: More Video Inventory is Accessible, and More Monetization Options
are Effectively Clearing Media78
Pre-Roll Media as a Monetization Format Online Continues to Blossom: Spend
Increased by 85.9% in 2010; 45% Upswing Forecast for 201179
Pre-Roll Inventory and Media Spend: 2003 – 201480
Pre-Roll Video Advertising Inventory Forecast at 165.5 Billion Units in 2011,
Including Social Media Environments and YouTube80
Pre-Roll Inventory and Media Spend Growth Comparison85
Less Inventory Allocation Balanced Against Advertiser Desire for Greater Impression Dwell Time: Lower Pre Roll Insertion Frequency Seen in 2011; Longer Spot Length87
Pre Roll Inventory Insertion Ratios87
Pre Roll Insertion Frequency Comparable Was 2.2 in 2010 when Including YouTube
Inventory88
Pre Roll Inventory Insertion Ratios88
Pre Roll Media Spend: In-House vs. Ad Networks, Exchanges90
CPMs 2011: Holding Steady for Premium Pre Roll; Increasing for Custom Search
Inventory; Slight Dip Across all Pre Roll Inventory92
CPM Analysis by Format: Premium Pre Roll Steady in 201192
CPMs: 2007- 2011 Comparison92
CPM Analysis: Pre Roll CPMs Trend Down When YouTube Inventory Included in
Total Media Spend94
CPMs: 2007- 2011 Comparison94
Pre Roll Video Advertising Inventory, Sales, CPM and Gross Media Spend Analysis:
2011 (Full-Year Estimates)95
Pre Roll Video Advertising Inventory, Sales, CPM and Gross Media Spend Analysis:
201099
Q & A’s103
AudienceScience103
Blinkx109
Brightroll113
Collective118
Rocket Fuel123
Spotxchange128
Tidaltv133
Tremor Video138
Tubemogul144
Turnhere.com149
Vidsense154
Visible Measures160
Yume Inc.165

SECTION FOUR171

Global Mobile Video Gross Media Spend Forecast at $268 Million in 2011; a Triple-
Digit Surge Over 2010171
U.S./North America Contributes 60% of the Global Total171
Gross Mobile Video Media Spend: 2009 - 2011171
U.S. Mobile Video Media Spend Forecast at $160 Million in 2011 (Mobile Ad
Networks Only)173
Mobile Video Media Spend: 2009 - 2014173
Total Billed Inventory Reached 42.1 Billion Impressions in 2010; U.S. Market Claims
54.7% of Mobile Video Gross Media Spend176
Mobile Video Advertising Network Billed Impressions Delivered by Geographic
Region: 2010177
Mobile Video Paid Impressions by Geography: 2010179
ECPM Sample Pricing Conversion Grid180
Filled Mobile Video Impressions are Forecast at 107.5 Billion in 2011181
Total Filled Impressions and Total Filled Video Impressions Comparison: 2009-2011181
Mobile Video Filled Impressions at 11.6% of Total Impressions Running on
Networks, Platforms and Inside Exchanges that Support Video182
Total Filled Mobile Impressions and Video Impression Comparison: 2009 - 2011182
ECPM Analysis: Mobile Video Spend and Impressions Filled 2009 - 2011183
Mobile Video Gross Media Spend Estimated at 14.8% of Total Mobile Gross Media
Spend in 2011183
Global Mobile Advertising Network Revenue and Gross Media Spend: 2009 - 2013185
Mobile Video Ad Networks Forecast to Claim 67.8% of Video Gross Media Spend
in 2011187
Gross Media Spend by Mobile Video Market Position: Ad Networks vs.
Platforms/Exchanges187
Mobile Video Advertising Network Revenue and Gross Media Spend: 2009 – 2013189
Mobile Video Exchange/Platform Revenue and Gross Media Spend: 2009 – 2013190
Mobile Video Advertising Networks, Platforms and Exchanges are Forecast to Earn
$442 Million in Net Revenue in 2011192
Mobile Video Advertising Network Revenue and Gross Media Spend: all Formats
2009 - 2013192
Q & A’s193
Adfonic193
Aditic (A Division of Sofialys)198
Admarvel (A Unit of Opera Software)203
Amobee209
Greystripe214
Millennial Media218
Mobclix, a Velti Company223
Mobile Theory227
Rhythm Newmedia232
Smaato237
Zestadz241