In-stream and virtual video ad billings are forecast to realize 24% growth in 2014, led by extensive monetization against broadcast and cable programmer inventory, supported by a stable of multi-screen media executions, brand-direct spend, mobile, social, internet music radio and VOD avails, according to a wide-ranging, data rich marketplace analytics report by AccuStream Research.
The report, In-Stream and Virtual Video Advertising 2014 – 2017, provides brands, marketers, agencies, buyers and sellers a detailed inventory map of the entire marketplace including sellout, views by site and screen, CPMs, spot length, insertion frequencies by publisher, programmer, device, aggregator and network, plus spend traversing ad tech serving systems and media player/recommendation platforms.
In-stream inventory allocated against premium content (and their syndication partners, including Hulu) increased 40% in 2013, to 1.75 impressions per video play and captured 50% of spend across this $3.2 billion patch of the marketplace. The virtual video ad industry exhibited a CAGR of 54.2% over the past ten years.
Aggregated insertion frequencies are holding steady at similar levels in 2014 and while 1st Q. demand is typically soft, and some inventory unsold–even considering the presence of sophisticated ad tech and media clearing systems–video campaigns are nevertheless flighted at near broadcast television levels, with mobile/tablet video content monetized at slightly lower rates.
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Further, TV Everywhere/VOD and in-stream inventory, when undersold, exposes viewers to impression fatigue, according to analysis of 200 properties; early TV Everywhere deployments remain a tech and monetization work in progress.
We currently estimate YouTube desktop insertion frequency (based on a rolling annual average) at 15%, with 55% skippable inventory. YouTube mobile/tablet video shows an insertion frequency of 10.6%.
An extensive database of in-stream inventory is contained in this report, with broadcast networks and cable programmers analyzed as a group.
In-banner video inventory is currently forecast at 487.3 billion impressions delivered in 2014, up 17% over 2013, with $3.19 billion in billings.
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