A report by AccuStream iMedia Research called “Streaming Media Advertising 2003 - 2008: Market Spend by Avail, Brand and Content Category,” says that all streaming media, including both audio and video, is projected to reach about $1.37 billion in 2007. That will be an increase of 38 percent over 2006, says their website.
Some findings of the report:
* Overall gross billings for Internet radio should reach $66.4 million in 2007, an increase of 60 percent over 2006.
* The most popular content pre-roll ads were placed against in 2006 were, News, 31.9%; Music, 28.4%; and Sports, 12.8 percent. That means almost 75 percent of all pre-roll ads were placed across those three categories.
* For the gross video spend in 2007, pre-roll ads are projected to be
26.7% of the total. (this only relates to short form video content). In 2008 its expected to increase to 28.5% of the total.
* On the other hand, embedded video ads are going to drop from 58.8% of total billing in 2007, to about 55.9% in 2008.
* Current demand reveals that long-form online TV shows' inventory sold against it will increase strongly over the next several years. This is specifically the major media content.
* User-generated video will grow some in generating some revenue, but it will go slowly in comparison to the professional video market because of the uncertainty that comes with it. This will be tackled in small, cautious steps.
* Ads for in-game video are projected to grow faster than the rest of the online streaming market.
With the upcoming introduction of the News Corp. and NBC Universal video site, it will give a much stronger indication of what professionally produced long form video will do in online ad revenue.
The report also shows why it's going to take a long time for user-generated video sites like YouTube to create meaningful revenue, if they ever do. Long form video will be the key moneymaker over the next few years in the online video space, and probably long after that.
I think what is going to have a lot of potential is what's being called semi-professional video, where ususally a short clip of pretty well made content is offered. I'm thinking of things like Rocketboom and Wallstrip here. Those that offer these types of video should do very good. That's the market I would go after.
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