Online video advertising 'quadruples'
Thursday, October 22 2009,
Web TV Enterprise has revealed that demand for online video advertising has quadrupled over the past year as the emerging media platform attracts greater attention.
The firm has secured 20 major online video ad campaigns so far in October, compared to just five for the same month last year. Its clients have also ordered eight million pre-roll ads this month, compared to just 1.5m for the same time last year.
Recent research by the company further revealed that media buyers intend to increase their spending on online video advertising by 50% into 2010.
"The fact that campaigns have quadrupled year-on-year backs up our belief that online video advertising is now at a tipping point in the UK market," said Web TV Enterprise managing director Jamie Estrin.
"Video advertising is experiencing huge growth online and Web TV Enterprise is at the forefront. Brands are consistently reporting the benefits and confidence is continuing to grow in the medium."
Broadcasters are now increasingly viewing online video as a significant revenue growth area, particularly in terms of the wider availability of broadband-enabled set top boxes.
In September, a report by the Internet Advertising Bureau and PricewaterhouseCoopers revealed that online ad spend has now surpassed TV for the first time ever.
Internet-based advertising increased by 4.6% during the first half of 2009 to reach £1.752bn, compared to expenditure on TV advertising stagnating at £1.6bn, down from £1.9bn year-on-year.
Various companies have already launched online video aggregator offerings, such as Blinkbox and MSN Video Player, which provide coherent platforms for users to access a variety of different content.
Last week, Channel 4 signed a new deal to bring its 4OD on-demand service to the Google-owned website YouTube, with revenue to be drawn from advertising deals. There are also consistent rumours of a forthcoming UK launch for US VOD joint venture Hulu.
On Tuesday, Arqiva's new video on demand venture SeeSaw announced that it has hired Vizeum to oversee all media planning and buying.