Nearly all Web sites with streaming content are monetizing it with video advertising, according to a survey of sites in the Advertising.com network.
While the network does not represent all Web publishers, its reach makes it a good indicator of overall trends. Not only did all video streaming sites surveyed say that they run video ads, 80% more sites plan to suppport video in 2007 than did in 2006.
Asked which online ad formats would lead revenue growth, respondents overwhelmingly chose large rectangles. Video was far down the list.
"Video carries great emotional impact like TV, yet it can be measured and can’t be skipped," noted David Jacobs of Advertising.com. "That value means publishers can command higher CPMs — hence the rise of streaming content."
That explains why video will account for so much online ad spending going forward.
As we move into the next decade, eMarketer estimates that marketers will put more of their online budgets into video and other rich media advertising than they do into display ads, banners and other static placements.
Web publishers’ preparation for video — while still believing in the tried-and-true large rectangle — makes sense given how video adoption is likely to play out.
As eMarketer senior analyst and video specialist David Hallerman puts it, "Spending increases on rich media advertising (most notably video) will lead the way in online ad spending, coming from a small base but with great desire among major brand advertisers for the format."