The big four US television networks are projected to take in about $120 million in 2007 for their online video streaming ad revenue.
Internet media research company Accumstream says the overall online video advertising market should reach around $1.3 billion this year; double what it was in 2006.
Some nice surprises for the professional video streaming industry is viewers are embracing it faster than expected, which has resulted in ad inventory being used up fairly quickly. That has resulted in new inventory being surprisingly available to advertisers. The whole market is growing much quicker than expected online.
Tracey Scheppach, senior vice-president for Starcom, a leading media buying agency, said concerning the online video market results: “Based on what we’re paying for spots across the four networks, we estimate this market to be worth more than $120m.”
The other great news for all involved is ad recall for viewers watching shows on the Internet smashes the recall rate on traditional television by 85 percent for the Internet, to single digits on regular TV, added Scheppach.
What remains to be seen is what the profits on the revenue generated is. The networks say they look at streaming shows on the Internet now as more of a marketing tool than profit generator.
I'm looking forward to the breakdown and what the net income will be from online video streaming. Those are the numbers that will really count in the end. Until those numbers come in, we really won't know how healthy the market really is.
What we do know is consumers like to view professional video online, and they had an extraordinary recall of what ads are being presented. That in itself is good news for the future of online video production, consumption and marketing.
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