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March 3, 2011

ACCUSTREAM RESEARCH: UGC VIDEO VIEWS AMP UP 146.9% IN 2010, PRE ROLL AD SPEND AT $426 MIL.

Seaside, Calif. UGC video sites, networks, channels and brands generated in excess of 230 billion domestic (U.S.) views in 2010, up 146.9% over the previous year. Meanwhile, advertisers stepped up, wading into market with some $426 million in pre roll ad spend made across the entire UGC video segment, according to an industry report published by AccuStream Research.

The report, UGC Video, Library Share Analyses and Pre Roll Media Spend, details the growth and maturation of UGC video from 2005 through 2010, with view forecasts carried out to 2012.

Combined, UGC and pro video views passed the 302 billion mark in 2010. UGC video surpassed pro video views in 2007.

While mainstream advertisers were initially reluctant buy the segment, media planners have clearly taken notice of the growth in both volume and unique users. The report examines UGC libraries in depth, and breaks out viewing share by content category for major sites.

UGC video channels are fertile content environments predicated on synchronous publishing, sharing and viewing. Consequently, UGC video has effectively expanded the scope of content categories, driving more views and increasing pre roll inventory.

Premium content (semi-professional and professional video) is essential for UGC video. Professional video channels deliver sought after content that is tightly integrated into UGC libraries, and an essential component to pre roll ad sales initiatives.

UGC video sites with pre roll advertising include Break.com, Metacafe, Dailymotion, MySpace, Veoh and YouTube, the latter the largest ad network by far.

YouTube’s partner channels (semi-pro and pro) now account for the majority of views on the site. Further, an analysis of the site’s library shows music is the most popular content category, generating 56% of total views. Based on insertion frequency, music captures the largest sums of pre roll video ad spend on the site.

CPMs across the UGC video segment’s 7 billion monthly avails range from low single-digits to $25 or more, depending on placement, content area and depth of the library buy.

AccuStream Research is a publishing, research and consulting firm producing sector reports covering online audio, video, CDN, OVP, Video CMS, Video Ad Networks, video advertising, Mobile Ad Networks, and subscription media stores.

Contact: Paul A. Palumbo, ppalumbo@accustreamresearch.com
(831) 394-1490

Accustream Research
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