Video Advertising Growth Factors

SUMMARY

As people spend more time watching online video content, the share of Internet users viewing video advertising will also grow, reaching four out of five users in 2012.

The Video Advertising Growth Factors report analyzes the forces that are driving marketers toward this nexus between television and the Internet.

With 67% of all Internet users viewing some form of video advertising (in-stream, in-banner or in-text) at least once a month in 2008, the audience has reached critical mass.

Obviously, an audience is the essential element necessary to develop a viable video advertising market. But another key factor will be an increase in the amount of trusted, professional-quality video content, which will both attract a broad base of brand marketers and give them the mass reach they seek.

Even so, media companies' fear of cannibalizing their legacy business model will slow placement of their video assets online.

Key questions the “Video Advertising Growth Factors” report answers:

• How fast will online video advertising grow?
• What factors will slow growth?
• What effect will the quality of video content have on advertising?
• What categories will lead the way in video advertising?
• What are consumer attitudes toward ads in videos?
• What role will social networking play in video advertising?
• And many others.....

eMarketer Reports - On Target and Up to Date

The Video Advertising Growth Factors report aggregates the latest data from marketing and communications researchers with eMarketer analysis to provide the information you need to make smart, timely business decisions.

TABLE OF CONTENTS

Executive Summary

• US Online Video Advertising Viewer Penetration, 2007-2012 (% of total Internet users)
• Top 10 Online Video Site Properties Among US Internet Users, Ranked by Unique Viewers, July 2008 (millions and average videos per viewer)

The eMarketer View

• Key eMarketer Numbers- Video Advertising Growth Factors

Video's Market Potential

• US Online Video Advertising Viewer Penetration, 2007-2012 (% of total Internet users)
• US Online Video Advertising Viewers, 2007-2013 (millions)
• US Online Video Advertising Viewer Growth, 2007-2013 (% change)
• US Internet Users Who Have Viewed Online Video Advertising, March 2008 (% of respondents)
• Inventory and Syndication
  • US Online Video Unique Viewers and Total Streams, January-March 2008
  • Percent of Sold-Out Online Advertising Inventory Among Select US Web Publishers*, by Type, 2006-2007
  • Online Video Advertising Impressions Sold by Select US Web Publishers, 2005-2007 (millions)
  • Top 10 US Web Brands, Ranked by Total Video Streams, July 2008 (thousands)
  • Websites Visited by US Adults to Watch Full-Length TV Episodes Streamed Online, by Technology Ownership, October 2007 (% of respondents in each group)
  • Websites Used to Watch TV Online Among US Online Households*, Q3 2008 (% of respondents)
• Sports and Ad Inventory
  • Professional and User-Generated Online Video Views in the US, by Genre, 2007 (% of total)
  • US and UK Online Sports Video Streams and Downloads, 2007 & 2012 (millions and % of total)

Why Marketers Want Video

• US Marketers' Attitudes Regarding Change in Marketing Effectiveness in the Next Three Years, by Media, Q3 2007 (% of respondents)
• Change in Online Marketing Spending in the Next Three Years According to Marketing Executives Worldwide, by Format, July 2007 (% of respondents)
• Marketing Goals that Companies Worldwide Are Trying to Achieve Using Select Online Marketing Tactics, July 2007 (% of respondents*)
• Reasons that US Advertising and Marketing Executives Are Interested in Implementing a Web-Based Video Strategy, 2007 (% of respondents)
• Online Video Advertising's Effect on the Purchase Process, by Site Category, 2007-2008 (average delta* above control and % lift)
• Share of Time in a Typical Week that US Adults Spend with Select Media* vs. Share of US Advertising Spending by Media, 2007
• Online Advertising Spending* as a Percent of Total Media Ad Spending, Leading 100 US Advertisers vs. All US Advertisers, 2002-2007

Ad Formats and Video Types

• Characteristics of Online Video Ads, 2007-2008
• Embedded and Preroll* Video Advertising Spending in the US, 2007 & 2008 (% of total video advertising spending)
• Online Video Streams in the US, by Type, 2008 & 2013 (% of total)
• US Online Streaming Video Advertising Revenues, by Video Type, 2008 & 2013 (% of total)
• Attitudes of US Internet Users Toward Advertising that Appears Within Free Video Content, by Content Type, February 2008 (% of respondents)
• Types of Online Content on Which the Clients of US Agencies and Advertisers Will Not Run Ads, January-February 2008 (% of respondents)
• Online Video Content Categories that US Adult Internet Users Would Watch a Lot More if Available, by Age, November 2007 (% of respondents)
• US Online Video Viewers Who Find Ads in Online Video as Acceptable as Ads in TV Shows, March-April 2008 (% of respondents)
• Average Length of Ad that US Internet Users Are Willing to Watch Before an Online Video, by Length of Online Video, September 2007 (seconds)
• Activities that US Online Video Viewers Do Less Often as a Result of Watching Videos Online, March-April 2008 (% of respondents)
• Monetizing Video Through Social Media
  • User-Generated Media Activities Among Internet Users* Worldwide, 2008 (% of respondents)
  • Social Media Marketing Tactics that US Marketing Professionals Plan to Implement, by Timeframe, Q3 2007 (% of respondents)
  • New Media/Consumer-Generated Media Tactics Used by US Marketers, April-May 2007 (% of respondents)
  • Social Media with the Greatest Potential to Impact Their Business According to Marketing Professionals in Select Countries Worldwide*, 2007 (% of respondents)
  • Behaviors of US Online Video Viewers When Visiting Online Video Sites, March-April 2008 (% of respondents)
  • US Marketers Who Use User-Generated Online Video Submissions in Online Marketing Promotions, February 2008 (% of respondents)
  • Attitude of US Advertising Agency Executives Toward Advertisers Investing in Social Network Marketing and User-Generated Content in 2008 (% of respondents)

Ad Audience Attitudes

• Types of Online Ads that Most Influence US Internet Users, by Age, October 2007 (% of respondents)
• US Consumers Who Have a Strong Negative View of Online Advertising, by Format, 2007 (% of respondents)
• Attitudes and Behaviors of US Adult Online Video Viewers Toward In-Stream Online Video Advertising, December 2007 (% of respondents)
• Behavior of US Adult Online Video Viewers Toward In-Stream Online Video Advertising, by Age, December 2007 (% of respondents in each group)
• Attention Paid to In-Stream Online Video vs. Other Advertising on Website According to US Adult Online Viewers, December 2007 (% of respondents)
• Attitudes of US Online Video Viewers Toward Brands Featured in Online Video Ads, July 2007 (% of respondents)
• Select Behaviors of US Internet Users After Viewing Online Video Advertising, February 2007 & March 2008 (% of respondents)
• Actions Taken by US Online Video Viewers in Response to TV and/or Online Video Ads, July 2007 (% of respondents)
• Primary Factor that Would Make Online Video Ads More "Pleasurable" According to US Online Video Content Streamers, June 2007 (% of respondents)
• Reasons that US Online Households* Watch TV Online, Q3 2007 & Q3 2008 (% of respondents)
• Importance of Online Video Ad Characteristics According to US Online Video Viewers, July 2007 (% of respondents)
• Ad-Supported versus Paid Content
  • Attitudes of US Online Video Viewers Toward Online Video Ads, July 2007 (% of respondents)
  • US Consumer Attitudes Regarding Ad-Supported vs. Paid-For Online Content, by Age, October 2007 (% of respondents*)
  • US Adult Internet Users Who Are Interested in Advertising-Supported vs. Paid Online Video Content, by Pricing Model, April 2007 (% of respondents)
  • Online Video Pricing and Advertising Model that US Adult Internet Users Would Prefer for Viewing TV Programs, by Age, October 2007 (% of respondents in each group)
  • Methods Used to Watch TV Online Among US Online Households*, Q3 2007 & Q3 2008 (% of respondents)

Trends to Watch: Bandwidth

• Monthly Consumer Internet Traffic Worldwide, by Segment, 2006-2012 (% of total and petabytes*)
• Monthly Consumer Internet Traffic Growth Worldwide, by Segment, 2007-2012 (% change and CAGR)
• Average and Peak Internet Traffic and Internet Bandwidth Growth Worldwide, 2005-2008 (% change)

Endnotes

• 97951
• Key eMarketer Numbers- Video Advertising Growth Factors
• 97576
• Online Video Streams in the US, by Type, 2008 & 2013 (% of total)
• 97577
• US Online Streaming Video Advertising Revenues, by Video Type, 2008 & 2013 (% of total)

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