Streaming media (audio and video) advertising is on course to deliver a 1.37 billion market in 2007, up 38% over 2006, according to the latest report by AccuStream iMedia Research. "Streaming Media Advertising 2003 – 2008: Market Spend by Avail, Brand and Content Category," breaks down the multiple revenue components driving growth for the period 2003-2008, both by video category (including UGV-user generated video) and Internet music radio.
AccuStream estimates inventory of 1.4-1.6 billion pre roll avails being sold against 2.1-2.7 billion streams/progressive download views per month inside professional, ad supported content areas (excluding UGV).
Pre roll is forecast to make up 26.7% of gross video ad spend in 2007 (excluding pre roll or interstitial units sold against long-form content), and 28.5% in 2008.
By contrast, embedded or in-page placements make up an estimated 58.8% of gross billings in 2007, and forecast at 55.9% in 2008.
Based on demand indicators, including high sell out rates, rich CPMs and trained cross-platform sales teams, inventory sold against long-form TV shows published by major networks will grow substantially through 2008.
In game video ads are forecast to grow faster than the overall market. UGV is expected to generate noteworthy ad dollars, particularly from embedded video placements, but continued hesitation on the part of brands and agencies to tackle the chaos of the category suggests incremental steps toward mainstream exploitation.
CPC (cost per interactive click) applications which enable screen over lays and or crawls are being deployed and finding some traction, and could become regular features on larger aggregated catalog sites such as Amazon.com, music video sites and premium content sites published by the networks.