IAB: $345M in Online Video Revenue in First Half of 2008
Advertising market research is already being infiltrated by terms like “dramatically lowered expectations,” and even online video — where growth rates are huge because it’s so new — hasn’t been immune to downgrades. Indeed, eMarketer recently chopped its estimate for 2008 U.S. video ad revenue by more than half, to $505 million from $1.3 billion.
But looking back at the recent past isn’t quite as painful. The Interactive Advertising Bureau said today that U.S. online advertising revenues in the first half of 2008 were up 15.2 percent over the same period in 2007 (PDF). Of $11.5 billion in total online revenue, 3 percent came from digital video advertising. That’s $345 million in video revenue in the first half of 2008, with $173 million in the first quarter and $172 million in the second. Looking back a year, to the first half of 2007, video revenue was only $100 million, or 1 percent of total online revenue for the period.
For the purposes of its reporting, the IAB defines “digital video commercials” as follows:
TV-like advertisements that may appear as in-page video commercials or before, during, and/or after a variety of content in a player environment including but not limited to, streaming video, animation, gaming, and music video content. This definition includes digital video commercials that appear in live, archived, and downloadable streaming content.
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[...] so far this year, or 4 percent of an overall $10.9 billion in online ads. That’s up from $345 million, or 3 percent of last year’s first-half [...]
IAB: Video Advertising Up 38% So Far This…
— 11:31 AM on October 5, 2009
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[...] revenue so far this year, or 4 percent of an overall $10.9 billion in online ads. That’s up from $345 million, or 3 percent of last year’s first-half [...]
IAB: Video Advertising Up 38% So Far This…
— 4:34 PM on October 6, 2009
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Bodes well for KIT digital IMO. Surely you would agree.
How does eMarketer define video ad revenue – is it in stream video ads (pre, post rolls), overlays in video, and video in ads?
The marketers must account of ad revenue related to video – such as companion banner ads, display ads on the video page, sponsorship revenue for microsite where video is a key element.
@Akash – here’s eMarketer’s description:
“What is included: in-stream (such as preroll and overlays), in-banner and in-text (ads delivered when users mouse over relevant words).
“What is not included: marketing spending for brand integration, product placement and host mentions on video content; also, nonvideo ads (such as banners) on video site pages.”
Thanks Liz. The ad spend related to video is most probably higher than in-stream video ads. In my opinion, we should have a metric to define/understand revenue generated where video is a key element of the experience. I know its tough to measure but it’ll give us a better feel for impact of video.
On another note comScore videometrix should start differentiating between UGC and partner content. We need a measure on % of video streams that are monetizable vs. entire universe of streams.