$4.7 Billion In-Stream Video Spending Forecast for 2016; Sector Snaps Back To Double-Digit Growth
October-4-2016
Contact: ppalumbo@accustreamresearch.com
831-394-1490
Seaside, CA Brands, marketers, agencies, rights holders and adtech platforms—(the demand side), have all clamored for more premium in-stream video inventory (supply side), or greater access to existing supply, though in 2016 the market is still defined by inventory scarcity despite a proliferating device base.
In today’s fragmented device universe marketers are buying what they know and what works: pre-roll formats on the desktop. There is, however, momentum behind mobile/tablet/VOD inventory demand moving the budgetary needle.
The total market is forecast at $4.7 billion in 2016, and expected to increase at a moderate single digit rate through 2018; in-stream spend continues to be constrained by scarcity or measured demand (i.e. undersold inventory on emerging platforms).
In fact, we estimate in-stream video inventory across all platforms/devices increased by 28.4% in 2015, while spend actually declined by -5.6% due to higher levels of unsold/undersold inventory (i.e. mobile/tablet VOD) which led to lower average blended CPMs as mobile inventories continued to flow into the channel and private/public exchanges.
Insertion frequencies, on average, including all sites, networks and channels, declined in 2015 to 2.17, off 12% over 2014. Even so, after two years’ worth of both single digit then negative ad spending growth we expect the market to snap back in 2016 with inventory increasing by 6% and spend by 42.6% as CPMs equalize and emerging platform inventory is better absorbed into budgets.
Currently digital on-demand television (both brand extension and internet pure-play publisher content) is being monetized against broadcast ad loads across all platforms (i.e. ad insertions per number of video plays, or number of advertising minutes per programming hour/half-hour), though the desktop remains the most exploited screen/platform, according to Avail Play Video Monitoring Services by AccuStream Research
A 30-minute show (22 minutes of runtime as defined by a linear television clock) has a range of 6 – 10 minutes of in-stream/online advertising, broken up into 3 – 4 pods, each pod with 1 – 7 ad units/avails of varying spot length.
A 60-minute show (43 minutes of runtime as defined by a linear television clock) has approximately 17+ minutes of in-stream advertising, broken up into 5 – 9 pods, each pod wit 1 – 7 ad units/avails of varying spot length.
Our research concludes:
As for YouTube, it’s one of the most highest spend generating video-centric audience platforms online, both desktop and non-desktop. Inside partner channels, there is a combination of strategies with regard to insertion frequencies and True View/skippable inventory.
YouTube exploits Auto, Music, Comedy, Beauty/Fashion, How-to, and Cooking/Health with in-stream video inventory. The desktop, however, is by far the most exploited device, including 2016 on the YouTube service.
This research may be found here: http://reports.accustreamresearch.com/in-stream-video-advertising-2016--2018-device-proliferation-inventory-diversity-and-continuing-appeal-of-the-desktop.aspx.
AccuStream Research (http://www.accustreamresearch.com) produces investment grade industry and trade research bridging digital video, internet music radio, download entertainment, digital video/audio advertising/spend, video and mobile adtech platform revenue and M & A valuations, industry trade surveys and support, CDN and integrated media optimization software, adtech integrator services, and conducts AvailPlay advertising and audience experience, digital diary and video impression monitoring services on-demand.
October-4-2016
Contact: ppalumbo@accustreamresearch.com
831-394-1490
Seaside, CA Brands, marketers, agencies, rights holders and adtech platforms—(the demand side), have all clamored for more premium in-stream video inventory (supply side), or greater access to existing supply, though in 2016 the market is still defined by inventory scarcity despite a proliferating device base.
In today’s fragmented device universe marketers are buying what they know and what works: pre-roll formats on the desktop. There is, however, momentum behind mobile/tablet/VOD inventory demand moving the budgetary needle.
The total market is forecast at $4.7 billion in 2016, and expected to increase at a moderate single digit rate through 2018; in-stream spend continues to be constrained by scarcity or measured demand (i.e. undersold inventory on emerging platforms).
In fact, we estimate in-stream video inventory across all platforms/devices increased by 28.4% in 2015, while spend actually declined by -5.6% due to higher levels of unsold/undersold inventory (i.e. mobile/tablet VOD) which led to lower average blended CPMs as mobile inventories continued to flow into the channel and private/public exchanges.
Insertion frequencies, on average, including all sites, networks and channels, declined in 2015 to 2.17, off 12% over 2014. Even so, after two years’ worth of both single digit then negative ad spending growth we expect the market to snap back in 2016 with inventory increasing by 6% and spend by 42.6% as CPMs equalize and emerging platform inventory is better absorbed into budgets.
Currently digital on-demand television (both brand extension and internet pure-play publisher content) is being monetized against broadcast ad loads across all platforms (i.e. ad insertions per number of video plays, or number of advertising minutes per programming hour/half-hour), though the desktop remains the most exploited screen/platform, according to Avail Play Video Monitoring Services by AccuStream Research
A 30-minute show (22 minutes of runtime as defined by a linear television clock) has a range of 6 – 10 minutes of in-stream/online advertising, broken up into 3 – 4 pods, each pod with 1 – 7 ad units/avails of varying spot length.
A 60-minute show (43 minutes of runtime as defined by a linear television clock) has approximately 17+ minutes of in-stream advertising, broken up into 5 – 9 pods, each pod wit 1 – 7 ad units/avails of varying spot length.
Our research concludes:
- VOD platforms deliver the most consistent content/ad playback experience, but on-demand services are the most immature and thus undersold at present
- The desktop is the most exploited device type, and delivers a fairly consistent experience with available audience/user information valuable to marketers
- Android is a highly fragmented series of OS-powered platforms, which can result in inconsistent playback and as well as inventory allocation
- iOS benefits from some of the most sophisticated/supported apps
- Non-desktop playback inconsistency and lack of deterministic audience profiling are contributing factors to lower CPMs and undersold inventory
- Allocation of in-stream inventory exhibits the characteristics of a sine curve, as increases are followed by periods of absorption
- Despite the fact that in-stream inventory is relatively scarce, the emergence of new points of access are typically undersold as brands access the value or ROI of campaign buys based on formats/execution, consistency of playback, app design and competitive pricing
As for YouTube, it’s one of the most highest spend generating video-centric audience platforms online, both desktop and non-desktop. Inside partner channels, there is a combination of strategies with regard to insertion frequencies and True View/skippable inventory.
YouTube exploits Auto, Music, Comedy, Beauty/Fashion, How-to, and Cooking/Health with in-stream video inventory. The desktop, however, is by far the most exploited device, including 2016 on the YouTube service.
This research may be found here: http://reports.accustreamresearch.com/in-stream-video-advertising-2016--2018-device-proliferation-inventory-diversity-and-continuing-appeal-of-the-desktop.aspx.
AccuStream Research (http://www.accustreamresearch.com) produces investment grade industry and trade research bridging digital video, internet music radio, download entertainment, digital video/audio advertising/spend, video and mobile adtech platform revenue and M & A valuations, industry trade surveys and support, CDN and integrated media optimization software, adtech integrator services, and conducts AvailPlay advertising and audience experience, digital diary and video impression monitoring services on-demand.
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