Online Video Advertising will Increase 48% Annually

By The Myers Report Archives
Cover image for  article: Online Video Advertising will Increase 48% Annually

Digital video advertising across all media is projected to increase 41.2% in 2012 and 51.3% in 2013 according to the new 2011-2020 Myers Marketing & Advertising Spending Report, available at www.jackmyers.com. The report estimates total digital video advertising investments for 2011 of nearly $2.6 billion, with growth projected by 2015 to almost $11 billion, an average annual growth of 48.3%. The primary beneficiaries are broadcast and cable television networks, which captured 67% of total digital video advertising in 2011 and are forecast by Myers to capture 47% of all digital video advertising revenues in 2015. (Continued Below)

              
 Jack Myers Media Business Report  
 Digital Video Ad Spending (000,000)  
 2011-2015 Marketing & Advertising Investment Data & Forecast  
 MEDIUM20112012201320142015  
  $%$%$%$%$%  
 Broadcast Network TV93825.0%1,31340.0%1,83840.0%2,43632.5%3,04525.0%  
 Online Originated Video 52550.0%92075.0%1,56370.0%2,50160.0%3,75250.0%  
 Cable Network TV79717.5%97622.5%1,22025.0%1,58630.0%2,06230.0%  
 Consumer Magazines24620.0%28917.5%589104.0%73023.9%93628.2%  
 Radio2322.0%61165.2%166172.1%30785.0%619101.6%  
 Mobile Video5240.0%8563.4%13761.1%23873.7%37959.2%  
 TOTAL$2,58127.4%$3,64441.2%$5,51351.3%$7,79841.5%$10,79338.4%  
 SOURCE: Jack Myers Media Business Report, www.jackmyers.com        
              
              

The fastest growing category of digital video advertising is online originated video content producers and distributors such as Vimeo, You Tube, Blip, Grab Media, Yahoo, AOL, Facebook and Twitter, which are forecast to grow from only $525 million in (non-legacy media) video ad revenues in 2011 to more than $3.7 billion in 2015, an average annual growth of 64%. Myers projects that online originated video content will generate more than $14 billion in ad revenues by 2020.

As consumer magazines and radio expand their online video assets, they will become competitive for the first time in the video medium, and will begin to replace their declining print and audio ad revenues. Radio companies are forecast to increase their video advertising revenues from only $23 million in 2011 to more than $600 million in 2015. Consumer magazines are projected to generate $936 million in video ad revenues in 2015, up from less than $250 million in 2011. All media that expand their focus on digital video will experience "hockey stick" growth beginning in 2013 as marketers turn increasingly to digital video options. Myers forecasts that mobile video advertising will increase an average 65% annually to $380 million in 2015.

Other categories not included in the report that will be the beneficiaries of expanded video opportunities include newspapers, gaming, promotion, business-to-business and digital out-of-home. The full Myers 2009-2020 data for 57 media and marketing categories is available to subscribers at www.jackmyers.com.

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