AccuStream Research: Video Advertising Networks Emerging and Surging to $493 Mil. in ’09 Revenue

TUCSON, Ariz.--(BUSINESS WIRE)--Online video advertising networks are forecast to make $493 million in participation revenue, hosting and insertion fees against gross CPM billings of $2.2 billion in 2009, according to a published report by AccuStream iMedia Research.

“Video advertising networks are a vital economic engine of online video monetization”

The report, Online Video Advertising Networks 2007 – 2010: Emerging and Surging, details video inventory and gross media spend for both up-and-coming and established avail executions, including in-banner video, remnant/3^rd party pre-roll sales, video overlays, video search and podcasting.

Each video advertising network vertical is analyzed by total inventory (exclusive, non-exclusive, monthly and annually), business models, sell-out percentages, CPMs for each avail format, media spend and total revenues by network.

In-banner video networks led by Eyewonder, Pointroll, Eyeblaster and Google’s DoubleClick are inventory, media spend and revenue generating juggernauts of the video advertising group, combining for over $1.5 billion in 2008 gross billings (video units only), forecast at $1.8 billion in ’09.

3^rd party video networks representing premium pre-roll inventory aligned with major branded content include BBE, Brightroll, Tremor Media, YuMe Networks, Internet Broadcasting and Worldnow are forecast to contribute another $223 million to gross media spend during 2009, over 39% of all pre-roll media buys across an extremely competitive and rapidly-evolving sales landscape.

Overlay network inventory reached 19.8 billion total units in 2008, forecast to increase 70% in 2009. Participation revenue flowing back to networks like VideoEgg, Adapt.TV and ScanScout is expected to climb 100% in aggregate.

Major video search networks Blinkx, Truveo and Magnify.net handled a combined 420 million average monthly search requests in 2008, and forecast to generate $30 million in corresponding revenue 2009.

Podcast inventory averaged some 84 million units per month in 2008, taking in gross billings estimated at $25.9 million, equaling approximately 55% of total paid media spend made against branded premium and semi-professional content categories.

“Video advertising networks are a vital economic engine of online video monetization,” commented research director Paul A. Palumbo.

“These tenacious, entrepreneurial networks are endemic to the broadband publishing medium, propelling video advertising inevitably onward toward greater accountability, higher ROI and wider adoption by agencies and marketers.”

AccuStream Research (http://www.accustreamresearch.com) is a video, audio, download, subscription, VASP application and broadband advertising research firm.