No results found

Online video ads on the rise, but there's room for more

ComScore's 2010 Digital Year in Review presents some interesting stats on the state of online video advertising. The report suggests that by the end of the year, 16% of videos watched (in terms of titles) were advertisements, compared to only 12% just six months prior.

Brightcove's diverse customer base is pretty evenly split down the middle between brand marketers and media producers. One group uses video to promote their products or services, and the other delivers ads on their content to generate revenue. Online video ad performance and reach is core to the success of the business of those ad-supported business models.

That's why we were curious to see comScore report that while ad adoption and reach for online video is growing at a healthy rate, there's still a huge untapped opportunity for serving more ads and changing the ratio of time spent watching advertisements. As comScore puts it:

"As a percent of total time spent, video is still in its infancy. In TV, commercials make up 25% of viewing time; in online video, it’s just 1.6%. That suggests that while video has clearly become integral to mainstream internet usage, the video ad market is still just a whisper of what it’s likely to become."

ComScore also reports that Brightcove partner Tremor Media Video Network took the top spot among video ad networks in December, delivering 1.0 billion ads reaching 40.8% of online video viewers with an average of 12 ads per viewer.

Where do you think the balance lies? Are online video audiences ready and willing to watch longer ads? Or are online video viewers expecting a different experience from television? Post your thoughts in the comments!