Tuesday, October 12, 2010, 4:06 PM ET|Posted by Will RichmondOnline video advertising is the fastest-growing ad category on the Internet, up 31% to $627 million in first half 2010 from $477 million in first half 2009 according to new research released by PwC US and the IAB.
However, video advertising still only amounts to 5% of total Internet ad spending, with search, at 47% (over $5.7 billion in FH '10) still dominating the landscape. However, video advertising is benefiting significant tailwind and is poised for lots of growth ahead. In its favor are shifting consumer behaviors toward online viewing, an exploding array of premium-quality/brand-friendly content, broad adoption of connected device which enable long-form online-delivered video viewing on TVs, and improved ad infrastructure (e.g. targeting, management, engagement, etc.).
When I talk to executives at video ad networks, brands, agencies and content providers they all confirm lots of activity in moving over TV and online budgets to video. I expect plenty more of this as online video viewership gains further momentum. The full ad spending breakdown for FH '10 is below.
(click on any image to download report)
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Video Research Around the Web
- 20% of YouTube’s Top Trending Videos of 2017 Are Ads Adweek
- 2017 was the year digital ad spending finally beat TV Recode
- Facebook, Google Leading to Internet Domination of Advertising The Hollywood Reporter
- Video will make up 75 percent of mobile traffic in five years Recode
- Top U.S. Pay TV Providers Lost 405K Subs in Q3: Analyst Multichannel News
- People watch Netflix unabashedly at work (and in public toilets, too) Quartz
- Streaming Tech Reaches Third Of Universe, Eroding 'Traditional TV' Viewing Mediapost
- NPD: 57% of Smartphone Users Stream Video Home Media