Category: Online Video

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Quick Stat: Online Video Will Account for 6.9% of Online Ads This Year

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Video’s share of the US online ad market will remain very small this year—just 6.9%, according to eMarketer data from March and June. Online video will be merely 3.6% of TV’s total this year. Even as online video grows rapidly over the next few years, marketers in 2015 will likely spend $100 on television ads for every $10 they spend for online video.

TV remains more of a sure thing for brand marketers. As more digital data about TV audiences becomes available to marketers through companies like Simulmedia, targeted TV ads will retain a portion of spending that might have gone to online video. Furthermore, buying online video ads tends to be more complex than buying TV commercials. Online video advertising rarely scales the way TV does, nor does it typically give comparable reach.

Note: eMarketer benchmarks its US online ad spending projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full year measured was 2010; online ad data includes categories as defined by IAB/PwC benchmark—banner ads (static display), classified ads, email (embedded ads only), rich media, search ads (including contextual text links, paid inclusion, paid listings and SEO), sponsorships, lead generation (referrals) and video (including in-banner, in-stream, in-text); includes mobile ad spending within existing formats, mainly search and banners. TV includes broadcast TV (network, syndication & spot) & cable TV.

A complete report, US Online Ad Spending: The Floodgates Are Open, is available for eMarketer Total Access subscribers. Learn more.

Posted: September 19, 2011. Filed under: Advertising,Online Video,Reports  
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Online Video Roundup

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Check out some of eMarketer’s latest coverage on online video. This is just a small portion of the digital insights eMarketer offers to clients through our Total Access subscription service. Learn more about becoming an eMarketer client.

REPORT: Sports Video Streaming: Ready for Game Time
Sports video streaming has come a long way, but consumer demand still exceeds the available legal options to view games. As leagues ramp up access to paid and ad-supported streams, marketers will have a broader content pool through which they can reach their target audiences.

  • How are sports leagues approaching online and mobile streaming?
  • What is the mix between ad-supported and fee-based streaming?
  • What opportunities does digital sports content present for marketers?
  • What role do smartphones and tablets play in the sports content ecosystem?
  • How does social media help sports content providers engage and grow their audiences?
  • ARTICLE: Mobile Video Uploads Hit Record High
    Traditional video cameras have been gathering dust due to the rapid growth of video camera usage on mobile devices. According to Photobucket, a web-based photo- and video-sharing service, site users are not only uploading more video content than ever before, but a staggering amount of uploads are also originating from mobile devices. Read article.

    ARTICLE: Online Video Ads in Canada Lag US
    eMarketer forecast in June that online ad spending in Canada will reach $2.1 billion in 2011, less than one-tenth of the $31.3 billion spent online in the US this year. While this total seems limited, online marketers in Canada will spend more than $81 per internet user throughout the year—more than their counterparts in Japan, France, Italy or Spain. Read article.

    INTERVIEW: PGATOUR.com Is the Primary Screen for Golf Fans
    In this interview with eMarketer’s Kris Oser, PGATOUR.com’s Lee Bushkell discusses streaming video ads and how the ad-supported website, mobile site and an app are the best channels for showcasing golf. Available only with eMarketer Total Access.

    ARTICLE: Options for Online Video Ad Viewers Lead to Greater Engagement
    Unlike TV, the internet affords marketers more than just a platform for message dissemination; it provides a channel through which users can simultaneously view and engage with a brand, product or service. Available only with eMarketer Total Access.

    REPORT: TV Video Viewing: Beyond Cord-Cutters
    Cutting the cord on cable TV has become a fashion statement of sorts. Surveys show there is a lot of interest but little action—so far. Marketers should be aware of what is happening with online TV video viewing today and what is likely to happen over the next 12 months.

  • What is a television household today?
  • What is the balance between TV and online video viewing?
  • Who are the cord-cutters?
  • How can marketers reach consumers effectively?
  • ARTICLE: In-stream Online Video Boosts Brand Recall
    Interactive marketers can’t help but look to online video to take advantage of branding potential richer than that for previous online display ad formats. But like its static display counterpart, banner ads, online video advertising can appear in numerous ad sizes, placements and creative types, making it difficult for marketers to decide where to start. Available only with eMarketer Total Access.

    ARTICLE: Click Rates Complicate Online Video Ad Metrics
    Benchmarks are often important markers for advertisers looking to estimate initial campaign performance and approximate competitor efforts. As online video, a subset of the larger display industry, continues to gain momentum, marketers are increasingly looking for video ad benchmarks to justify increased campaign budget and online video investment. Available only with eMarketer Total Access.

    REPORT: Video in Ecommerce: Success Strategies Come into Focus
    Ecommerce video has grown in the past year, with 73% of US retail sites now using video. However, merchants still have room for growth in scaling their programs and maximizing visibility. Continued experimentation—and improved analytics—will help.

  • What benefits do retailers derive from online video?
  • What types of clips are most effective at boosting sales and enhancing the digital retail experience?
  • How do retailers distribute video content?
  • What techniques do merchants use to maximize the visibility of their videos?
  • CASE STUDY: Subaru’s Mock Weather Forecast Videos Connect with Consumers
    With the Spring 2011 launch of “The World’s Worst Weatherman” campaign to promote the Subaru Symmetrical All-Wheel Drive system, automaker Subaru of America turned to online video to communicate its cars’ weather-enduring benefits. Available only with eMarketer Total Access.

    REPORT: 7 Trends for Video Advertising Engagement
    The high cost of online video advertising forces marketers to make the most of their spending. That puts great focus on engagement—a broadly defined concept where marketers measure certain effects of the video ads and encourage the target audience to make fuller connections with the brand.

  • What are the primary metrics for measuring engagement?
  • Do the sites where a video campaign runs influence engagement?
  • What types of targeting best foster engagement?
  • How can sponsored video content create engagement?
  • How do consumer control, viral ads and social media work together to enhance engagement?
  • REPORT: The Video Viewing Audience: Trends for Marketers
    Consumers’ interest in watching video is growing exponentially, as is the number of screens and devices they use to access video content. But where and how people choose to watch video content affects their engagement level and whether a marketer’s message gets through.

  • How do viewers divide their time between TV, video and the internet?
  • Besides television, which devices are the most popular for watching video, and who is using them?
  • What are the most popular types of video?
  • On which screen is the audience most receptive to video advertising?
  • INTERVIEW: Why Best Buy Created an Ad-Supported Media Network for Its Video
    Best Buy speaks with eMarketer’s Tobi Elkin about the role online video plays; why Best Buy chose to implement a media-based business model for its video content and programming rather than going down the syndication route taken by many retailers; and its evolving programming aspirations. Available only with eMarketer Total Access.

    eMarketer clients have access to all of these insights and more with our Total Access subscription service. Learn more about why today’s leading companies rely on eMarketer to make better business decisions.

    Posted: September 13, 2011. Filed under: Online Video,Reports  
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    Quick Stat: 54.9% of US Adult Online Video Viewers Watch TV Shows Online

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    Watching online video, from user-generated clips to premium content, is now a firmly entrenched habit among US internet users. Seeking out specific content such as a TV show is not as common as marketers might think, however. eMarketer estimates that 68.2% of US adult internet users (158 million people) will watch any form of online video at least once a month in 2011, but just 54.9% of that group (86.8 million) will watch a TV show online at least once a month.

    But the habit is catching on. By 2015, 76% of all adult internet users (195.4 million) will watch any type of online video on a monthly basis, and 64.1% of them (125.3 million) will be watching TV shows online.

    A complete report, TV Video Viewing: Beyond Cord-Cutters, is available for eMarketer Total Access clients. Learn more.

    Posted: September 12, 2011. Filed under: Online Video,Quick Stats  
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    August 5th, 2011: eMarketer in the News

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    Here are a few of the top stories in which eMarketer data and analysis were featured this week:

    8/5: Forbes.com – How 2011 Can Still Become The Year Of Mobile For Advertisers
    According to an Interactive Advertising Bureau survey, a third of affluent consumers are willing to share their information online in exchange for a more personalized experience. This is not surprising. Read more.

    8/5: paidContent.com – How The Plunging Financial Markets Will Impact Ad Spending
    Throughout the past six months, global ad spending forecasts haven’t been revised down that much. Meanwhile, online ad growth has continued to look resilient. Read more.

    8/4: AdAge.com – Twitter Advertising: Four Marketers on How Their Campaigns Fared
    Considering that Twitter did not offer advertising until it was nearly 4 years old, the company has ramped up its ad business quite rapidly since April 2010. By the end of 2010, Twitter had partnered with 150 companies for advertising campaigns on the site, said Dick Costolo’s presentation at the All Things Digital D9 conference in June. Read more.

    8/4: USA Today – Web tracking has become a privacy time bomb
    The coolest free stuff on the Internet actually comes at a notable price: your privacy. For more than a decade, tracking systems have been taking note of where you go and what you search for on the Web — without your permission. Read more.

    8/3: Wall Street Journal – New Metrics Gauge Heft of Facebook Ads
    Facebook Inc. is getting its own ratings systems, in an effort to help companies measure the marketing exposure their brands receive on the social-networking website. Read more.

    8/2: MediaPost.com – Google+ Creates Data Gold Mine For Advertisers
    The data Google collects from Google+ should increase the effectiveness for conversions and ad targeting. The overall result could become an increase in click-throughs and a rise in cost per clicks. Read more.

    8/2: Adweek.com – Breaking Down Condé Nast’s E-Sales
    Magazine subscriptions became available on the iPad this spring, and the first meaningful set of results are out, with Condé Nast announcing that it’s drawn 242,000 digital customers through Apple’s iTunes store in the six weeks since it introduced iPad subs. Read more.

    8/2: Wall Street Journal – Funding Values Twitter at $8.4 Billion
    Twitter Inc. said it received a “significant” round of funding led by Digital Sky Technologies, a Russia-based venture firm that has invested in other social-networking companies that have enjoyed surging valuations. Read more.

    8/1: Guardian – Arty video favourite Vimeo adds small business service
    There have largely been two tribes in the online video space until now: free, consumer video sharing sites and high-end, fairly expensive enterprise services. Read more.

    8/1: VentureBeat.com – PayPal: 12M monthly users are paying for virtual goods
    More than 12 million unique users pay for virtual goods each month, according to data released for the first time today by digital payments vendor PayPal. Read more.

    8/1: AdAge.com – Why the Pipes Are Broken in Mobile Advertising
    Embarking on a mobile ad buy is diving into a dark, deep sea crammed full of startups you’ve likely never heard of: Celtra, Mojiva, Medialets, inMobi, just to name a few. It’s brimming with a lot of little companies — and a couple of big stakeholders like Apple and Google — scrambling to build the infrastructure to make advertising work in a medium that some have said will be bigger than TV. Read more.

    8/1: VentureBeat.com – Rich folks are suckers for digital media (and online ads)
    Digital media and online advertisements are the best way to reach the wealthiest Americans, according to a study released today by the Interactive Advertising Bureau (IAB). Read more.

    7/31: New York Post – Foursquare sets revenue plan
    Foursquare is looking to cash in on all those check-ins. The social network, which has been known for having a fast-growing footprint — more than 10 million members have checked in more than 750 million times to about 15 million venues worldwide, and a healthy valuation, $600 million after its recent $50 million round of financing — but very little revenue, is now ready to pump up its top line, The Post has learned. Read more.

    For more of eMarketer’s recent news coverage, click here.

    Posted: August 5, 2011. Filed under: Advertising,Mobile,News,Online Video,Social Media,Twitter  
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    July 8, 2011 – eMarketer in the News

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    Here are a few of the top stories in which eMarketer data and analysis were featured this week:

    7/7: WSJ.com – Apple Adds Flexibility to IAds
    Apple is offering Madison Avenue more flexibility in getting in on its iAd mobile advertising service. The Cupertino, Calif., company has begun pitching ad buying firms on making large upfront iAd spending commitments that they can parcel out to their advertiser clients in smaller chunks. Read more.

    7/7: Beet.TV – Online Video’s Troubling Ad Equation: Less Transparancy Means Lower Cost
    In making online video buying decisions, marketers face the choice of spending more for video when they know where their ads are placed versus paying less when their ads are matched with videos through exchanges and video ad networks, says Vipin Mayar, Global Director of Performance Analytics for McCann Worldwide in this interview with Beet.TV. Read more.

    7/7: NYPost.com – Games, tweet, games
    Twitter CEO Dick Costolo isn’t playing around any more. The tweet chief, who recently landed in Sun Valley, is looking beyond advertising to boost Twitter’s business prospects. Read more.

    7/7: Bloomberg.com – Apple’s IAd Mobile-Ad Service Said to Cut Prices as Clients Turn to Rivals
    Apple Inc. (AAPL)’s iAd mobile-advertising business has cut rates by as much as 70 percent as some marquee clients are using rival services, two people with knowledge of the matter said, signaling the company is struggling to parlay its technology leadership into success in the ad industry. Read more.

    7/6: Mashable.com – Why Daily Deal Sites Are Here to Stay [OPINION]
    If something is too good to be true, then it probably is. But once in a generation, an idea (or in this case, a business model) comes along that is so disruptive that the old the adage is proven wrong. Read more.

    7/6: Guardian – Facebook gets even more face-to-face thanks to Skype partnership
    Facebook users will be able to make free video calls to their friends through the site after the social networking giant announced a partnership with the web telephony service Skype. Read more.

    7/6: ClickZ.com – Buying and Placing Online Display Ads
    According to the Interactive Advertising Bureau (IAB), Q1 2011 set an all-time record in Internet advertising with $7.3 billion in revenues, a 23 percent year-over-year increase. Read more.

    7/6: Bloomberg.com – Facebook Ad Rates Hold as Inventory Rises, Easing Price Concerns
    Facebook Inc., the biggest social network, said advertising rates have held up even after it added new ways for marketers to promote products, allaying concern that prices would decline as inventory surged. Read more.

    7/6: Wall Street Journal – Twitter Seeks $7 Billion Valuation
    Even as Internet companies such as Zynga Inc. and Groupon Inc. file to go public, Twitter Inc. is taking a different route: It is continuing to tap private investors. Read more.

    7/5: GigaOm.com – Is Twitter helping to inflate the tech bubble?
    A little over six months after the company raised a gigantic round of financing that valued it at close to $4 billion, Twitter is in negotiations to close other massive round, according to a report in the Wall Street Journal. Read more.

    7/5: Forbes.com – Online Ad Spending Jumps, Led By Video and Facebook
    This year will be the best in recent memory for online advertising, which a new report from eMarketer predicts will grow more than 20%, to $31.3 billion. Search ads mostly from Google, of course, will continue to lead the way, with $14.4 billion of the total take in 2011. Read more.

    For more of eMarketer’s recent news coverage, click here.

    Posted: July 8, 2011. Filed under: Advertising,Facebook,Online Video,Twitter  
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