Accustream Research
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August 11, 2010


Seaside, Calif. Strengthened by transaction transparency, ad networks, marketplace auctions, expanding premium inventories, innovative formats, lower CPMs, unambiguous campaign performance benchmarking, ROI and accountability metrics, combined with broadcast buying scale, online video advertising and related media spend is forecast at $2.7 billion in 2010, according to a report by AccuStream Research.

The report, Online Video Advertising and Media Spend: 2010 - 2012, shows in-banner video spend surpassed pre roll in dollar value in 2005, and the versatile format is expected to continue to lead the market through 2012, though at a declining rate.

The pre roll avail—which heretofore has primarily been sold against premium content--is gaining more publisher adherents online.

Pre roll video is now regularly bought against partner channel content nested inside hosted network sites such as YouTube, and for the first time on highly-produced adult sites in 2010, buying patterns expected to continue and accelerate going forward.

In-banner video media spend is forecast to make up 53.7% of the market’s total dollar value in 2010, while pre roll captures a 27.5% share of the gross.

However, the report’s extensive data indicate media spending trends are evolving, and viral campaigns, search, auctions (pre roll), overlay executions and performance based buys (CPE/CPC) are growing. Mobile video spend is expected to make up .1% of the market in 2010, increasing to .5% in 2012.

The report’s four sections are divided and analyzed by inventory type. Each section details total inventory, insertion frequencies or impressions served, market and site CPMs plus media spend, and contains in-depth Q & A’s with the industry’s leading executives helming companies at the forefront of this dynamic market.

Q & A’s provide a contextual backdrop for the data and analytics contained in this research report.

The report also examines current, forecast and historical market CPMs for all inventory formats attending monetization of online video.

“Online video advertising is highly elastic,” noted AccuStream research director Paul A. Palumbo. “Lower CPMs, aligned with desirable inventory--plus granular targeting capabilities--has created a durable foundation for continued market growth.”

AccuStream Research is an online video, audio, download, subscription, OVP, video advertising network, CDN and broadband advertising research firm.

Contact: Paul A. Palumbo,
(831) 757-2556

Accustream Research
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