Digital Video Advertising Continues Strong Growth

The growth of online advertising has been meeting – and exceeding – expectations for years now. Particularly healthy are in-stream and digital video advertising, which a new report finds have grown 52.1 percent in 2012 to a whopping $7.6 billion.

This is the culmination of a nine-year CAGR run of 62.5 percent, and more growth is expected in the future, according to an inventory and spend report by AccuStream Research.

AccuStream Research produces reports for investors and covers industries such as digital video, audio, subscription media services, in-stream and digital video advertising, video advertising networks, mobile advertising networks, CDN and integrated video platforms.

The report, In-Stream and Digital Video Advertising: 2012 – 2015, covers inventory formats (in-stream, in-page, overlay), growth rates, sellout, pricing (CPM, CPC (News - Alert), CPV, CPCV) and platform related spend (online, mobile, social, OTT/VOD).

It concluded that in-stream and in-page advertising formats represent a combined 86.7-percent share of the sold market. Third-party video ads represent a 21.4-percent piece of the $2.5 billion in-stream total.

This growth has strongly benefited premium broadcast networks, cable channel sites and Web-based video entities such as Hulu and YouTube (News - Alert), said the research group.

Much of the growth is in mobile video. Smartphone and tablet-based in-stream video advertising is reportedly on the rise, growing an impressive 235 percent in 2012, with inventory cleared directly and effectively though mobile ad networks.

YouTube, its brand marketer and agency partners, in particular, have teamed to deliver a sophisticated mobile app and in-stream advertising opportunity, according to AccuStream.