Premium digital video publishers, their agencies and brand marketer partners have settled expectations regarding the migration of linear TV to VOD advertising paradigms that are time-based, carving out pods of inventory inserted sequentially into long-form programming online.

Marketers place their bets where impressions inspire confidence, regardless of viewer orientation, thus directing demand toward in-stream inventory projected to capture 46.6% of digital video ad spend in 2015 (including mobile, in-app, VOD/OTT), according to the industry trade resource Digital Video Ad Spend and Billings Viability of Time-Based Formats In Non-Linear Channels.

This 2015 edition analyzes a decade of billings by format and spot length across the desktop, now incorporating mobile, social, custom media player, VOD and Authenticated Sign-in, inventory pricing models and CPMs, emerging video executions and formats, plus respective growth trajectories, including their long-term market viability as exploitation engines.

All publisher categories have embraced variations of timed monetization techniques (such as media impressions seen versus time spent on site, number of pages viewed, pages turned, video content runtime, number of video viewed etc.) offered against content of varying lengths routed through IP video channels.

Even as digital video ad format innovations roll through the marketplace, some designed to incentivize audiences to opt-in, others that utilize novel areas of screen real estate, incorporate elements of interactivity or map-in smarter target audience profiling data/attributes, the first position, in-stream ad messaging endures; our ad sales analysis shows the continued success of ad-supported IP video is predicated on its long-term viability.

Whether IP video audiences are in lean forward, lean back or multi-device orientation, despite ad defeat schemes and pop-up blocker browser settings or clever user workarounds, not even less-than-ideal impression and adtech execution have compelled marketers to abandon the format, estimated to produce 49.1% of the business by 2017.

Short form video clips (produced by premium broadcast, internet pure-play, syndicated to blogs, magazine publishers and affiliated networks), text content or other published online media sold or positioned against multiple digital video formats exhibit less standardization.

As video marketing opportunities have expanded over the past five years, so has the dispersion of digital video ad budgets, with increased billings flowing into integrating social commentary, sponsored post, earned media/viral placements, in-player content packaging, search/player recommends and assorted embedded auto-play units.

Together, these executions, along with the widely deployed in-banner video format, acknowledge and strengthen an emerging hybrid media landscape, where consumption patterns are morphing, blending and co-mingling inventories delivered against cross-device cumulative and simultaneous broadcast viewing.

Ongoing research shows spot lengths routinely fall between 15-seconds to 2:50-seconds, with longer info messaging often skippable. Inventory also exhibits seasonality, with 4th Q. avails often exceeding time allocated on the linear broadcast clock.

Excluding in-banner sales, emerging digital video executions are projected to capture 25.7% spend share by 2017, with the total market size forecast at $14 billion in spend.

Pioneered by Google’s YouTube, skippable in-stream inventory reduces marketer risk, and is an inducement, pulling in more brand spend.

It’s also a response to an immature marketplace, undervalued mobile media, adtech implementation hiccups, sales inefficiencies inherent in early stage cross-channel inventory exploitation and the ever present nod to more consumer control over their programming choices.

The TV remote control did not obsolete the linear television monetization formula, and we believe skip inventory (and other performance-driven executions outside the media player) will distinguish, rather than diminish the importance of non-skip, in-player inventory.

Further, AvailPlay Audience and Impression Monitoring conducted by AccuStream Research indicates that while the marketplace has trained its sights on rapid allocation of video inventory, achieving an overall balanced content and advertising value exchange across audience constituencies comparable to television has yet to be realized. Moreover, while there are expanding sets of devices and access options, video libraries still trickle out online.

Those obstacles have impact on growth and by design moderate what is an inevitable migration to IP video environments, but they have not deterred today’s audiences from watching nor blunted marketer enthusiasm for buying; the framework for a promising business is there.

 

SECTION ONE

IN-STREAM AND DIGITAL (ALL FORMATS) VIDEO AD BILLINGS FORECAST AT $10.3 BILLION IN 2015

IN-STREAM AD INVENTORY TO GENERATES 46.1% OF TOTAL SPEND IN 2015

Digital Video Ad Spend: Dollars Make Sense 2015 – 2017

IN-STREAM AND DIGITAL VIDEO AD BILLINGS BY FORMAT: 2003 – 2017

In-stream and in-banner video formats are twin pillars of spend, and account for 87.2% of total billings in 2015, though social and brand-direct marketing on the rise

Market mechanisms to clear video inventory have emerged in large numbers to address macro and micro adtech opportunities

IN-STREAM AND DIGITAL VIDEO MEDIA SPEND: 2003 - 2017

A nascent marketplace with steady growth potential: Double-digit video ad billings annual growth projected through 2017

Mobile video ad billings forecast at $1.4 billion in 2015, including YouTube and Facebook

IN-STREAM VIDEO SPEND: DESKTOP/MOBILE/TABLET 2009 - 2017

DIGITAL VIDEO AD BILLINGS EXHIBIT A HISTORY OF SUSTAINED GROWTH: CAGR of 50.5% (2003 – 2014)

IP VIDEO PLAYS AND IN-STREAM AD INVENTORY INSERTION FREQUENCIES 2006 – 2014

PREMIUM PUBLISHERS CONTINUE TO INCREASE IP VIDEO AD LOADS WHEN MONETIZING BEYOND THE LINEAR CLOCK

DIGITAL VIDEO ADVERTISING AVAILS AND MEDIA SPEND OVERVIEW: TOTAL IN-STREAM VIDEO SPEND IMPROVED BY 23.4% IN 2014, NON-DESKTOP BY 261.4%

Sellout and 1st Q. seasonality

In-banner video remains a potent execution format online: Ad spend forecast at $4.2 billion in 2015

DOMESTIC IN-BANNER VIDEO IMPRESSIONS AND MEDIA SPEND: 2003 - 2017

IN-STREAM AND IN-BANNER VIDEO: BOTH FORMATS COMBINE TO DRIVE VIDEO AD INVENTORY SCALE

Authenticated sign-in/TV Everywhere: Present and future video spend indicators

AN ADUNDANCE OF IN-STREAM INVENTORY HAS CONTRIBUTED TO UNEVEN DIGITAL AD PLAYBACK: THE “FRANKENSTEIN” WORKFLOW FACTOR

Data reveals audience reaction to poor content playback affects ad spend: Engagement vs. Abandonment

Fixes to execution headaches include larger libraries, better navigation, hiring digital media ad sales and adtech specialists

Video CPMs: The Yin and Yang of big data, the cross-platform inventory surge, greater audience and impression transparency

IN-STREAM, DIGITAL VIDEO FORMAT PRICING FLUCTUATIONS: 2007- 2014/2015 YTD ANNUAL COMPARISON

SECTION TWO

SHARPENING THE 2015 – 2017 IN-STREAM VIDEO ADVERTISING BIG PICTURE: LINEAR BROADCAST TELEVISION AD LOADS HAVE ARRIVED--WITH GROWING PAINS

3rd Party IP Video AdTech: Addressing the In-stream playback disconnect

THE DIGITAL VIDEO ADTECH ECOSYSTEM ALIGNMENT: VENDOR POSITIONS AND INVENTORY MANAGEMENT SPECIALIZATION 2015 - 2017

IP VIDEO IN-STREAM INVENTORY AND MEDIA SPEND PERFORMANCE 2015 – 2017: DOUBLE DIGIT CAGRs

IP IN-STREAM VIDEO INVENTORY FORECAST AT 295 BILLION AVAILS IN 2015; SPEND AT $4 BILLION

IN-STREAM VIDEO SPEND EXPECTED TO OUTPLACE INVENTORY EXPANSION THROUGH 2017

THE EVOLUTION AND MATURATION OF YOUTUBE IN-STREAM ADVERTISING: 2009 – 2015

YOUTUBE EXHIBITS HIGHER IN-STREAM INSERTION FREQUENCIES ON THE DESKTOP, LOWER ALLOCATION OF SKIPPABLE INVENTORY

VIDEO INVENTORY AND FREQUENCY ANALYSIS 2014/2015: YOUTUBE CHANNELS AND IN-STREAM VIDEO MONETIZATION

SECTION THREE

IN-BANNER VIDEO AVAILS ARE SUPPORTED ACROSS MANY VIDEO SITES AND ADTECH MARKETPLACES

DOMESTIC IN-BANNER VIDEO IMPRESSIONS AND MEDIA SPEND: 2003 - 2017

SECTION FOUR

EXPANDING BUDGETS TRANSFORM MOBILE INVENTORY INTO A REAL BUSINESS OPPORTUNITY FOR PUBLISHERS AND VENDORS

VIDEO SPEND FORECAST AT 18% OF GLOBAL BILLINGS IN 2015

MOBILE MEDIA SPEND: MAPPING THE MARKET 2014: SPEND BY ADTECH SOLUTIONS PLATFORM

MOBILE ADSPEND EXPLOITS ALL MEDIA FORMATS, PARTICULARLY PERFORMANCE-DRIVEN DISPLAY, RICH MEDIA AND VIDEO

FACEBOOK DISPLAY AND MORE PREMIUM PUBLISHER VIDEO INVENTORY HAS RAISED eCPMS to $2.35 in 2014

INVENTORY REALITY CHECK: NON-DUPLICATED IMPRESSION REQUESTS HITTING 11 TRILLION ON AN ANNUAL BASIS

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