In-stream, digital advertising set to hit $7.6B in 2012

Michelle Clancy | 29-11-2012

In-stream and digital video advertising momentum rolled forward 52.1% in 2012 to $7.6 billion, capping off a nine-year CAGR run of 62.5%, with more growth ahead, concludes an inventory and spend report by AccuStream Research.

The ecosystem's twin pillars, in-stream and in-page formats, own a combined 86.7% share of the sold market. Third-party video ad networks cleared a 21.4% piece of the $2.5 billion in-stream total.

Research data explains notable adjustments being made to available in-stream inventory (pre/mid/post-roll), and corresponding media spend specifically, by site, network, channel and service. For one, the expansion of mid/post-roll inventory supporting premium broadcast network properties and cable channel sites which have been allocated inside Hulu and YouTube has been pronounced.

As a result, in-stream insertion frequencies have increased over the past year, and now stand at 1-to-1.04 (or 1-to-2.72 when including YouTube), up from 1-to-1.6 in 2011.

In-page impressions continue to pace the market, capturing 53.5% of total video spend in 2012. However, emerging platforms and environments (mobile, social and OTT/VOD billings) are forecast to generate 23.4% share by 2015, up from 10.3% today.

Mobile/tablet in-stream video advertising is surging, advancing 235% in 2012, with inventory cleared directly and effectively though mobile ad networks, the research found. And as a final highlight, overlay placements more than doubled in 2012 to 189 billion impressions.

YouTube, its brand marketer and agency partners, in particular, have teamed to deliver a sophisticated mobile app and in-stream advertising opportunity. A detailed data portrait of YouTube's monetisation strategies over the past three years examines insertion frequencies across themed content and partner channels, deployment of TrueView inventory, including the mobile platform, and likewise enthusiast content areas where ad skip technology is less prominent or absent.