Digital video ads are estimated to produce 49.1% of business by 2017

Digital video ads are estimated to produce 49.1% of the digital advertising business by 2017, according to new reports this week. Recent ad sales analysis shows that the continued success of ad-supported IP video is based on its long-term viability, which has been consistent due to marketers’ refusal to abandon the format despite the recent popularity of ad-blocking software and increases in less-than-perfect ad impressions. As video marketing opportunities have expanded since 2011, increased billings have come from integrating ads into social commentary, sponsored posts, earned media/viral placements, in-player content packaging, search/player recommendations, and various embedded auto-play units. Alongside the most widely deployed ad banner video format, a hybrid media landscape is thought to be forming, where consumption patterns are blending inventories delivered against cross-device cumulative and simultaneous broadcasting.

Digital video ad market examined in new market research report.

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.

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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.