The internet TV advertising industry will grow 476 percent in five years thanks to the increasing popularity of online video streaming, delivering businesses fresh opportunities to reach new audience demographics.
The Frost & Sullivan report, which is co-written by The Video Network, on the Australian Online Video Market found the internet TV advertising industry is set to grow at an annual rate of 42 percent from 2011 to 2016 and increase in value from $54 million to $311 million, following an explosion of streaming which grew from 2 billion videos in 2007 to 11 billion in 2011. Cheaper bandwidth, more choice of video content, and higher data caps has resulted in Australian watching on average 10.2 hours of online video each month.
The Video Network’s Co-Managing Director Peter Ostick said that “while this sector is in its early days, internet TV is already reaching upwards of 12 million viewers per month according to comScore statistics, which represents a huge potential for advertisers within this emerging market.”
Advertising agencies and marketers are increasingly using online video as an integral part of their advertising campaigns as the industry becomes more sophisticated.
“The 2010 release of the Video Ad Serving Template (VAST), makes it easier for advertising agencies to track and report on video ad campaigns.. We expect standards will continue to improve to offer greater targeting and brand protection as it matures, and TVN intends on leading this innovation,” Ostick added.
Online promotion opportunities for business will continue to rise as this ability to offer greater targeting of specific audiences increases.
Getting involved with online TV advertising will continue to be the way of the future, according to Frost & Sullivan, as the company anticipates it will outperform all other major online advertising segments such as online display (banner ads), advertorials, integrated site content, sponsorships and e-newsletters.
The main sources of online video advertising inventory are the network resellers who are divided into two camps: display advertising networks such as VideoEgg and Joost Video Ad Network, who see increased yield opportunities in video; and organisations such as The Video Network who offer dedicated video offerings.