More online videos than search (soon!) October 12, 2007Posted by jeremyliew in advertising, business models, Consumer internet, Search, video.
Tod Sacerdoti, CEO of the online video ad network Brightroll, notes that video impressions will soon pass number of searches.
1. U.S. video impressions will pass core search impressions in the next three months
2. U.S. video impressions will pass expanded search (meaning including Amazon, eBay, etc.) in the next twelve months.
3. Video advertising spend is being underestimated by analysts (eMarketer currently estimates video will grow from 10% to 25% of search revenue, and from 5% to 12% of total online ad spend, over the next five years)
As with all audience shifts, such as network television to cable television or television to the Internet, ad dollars will follow the audience. However, it does take time, as the network to cable transition took 5+ years and we are still in the midst of the spend movement from television to the Internet.
My bet? I estimate that video advertising will be 50% of search revenue within the next five years and will be larger than the entire search advertising business in the next ten years.
A couple of years ago, when I was running Netscape, the average revenue per search was about 2.5 cents when factoring in sponsored link click through rates and average CPCs. That translates to about a $25 CPM. Web video eCPMs may end up in a lower range than that, although premium video advertising inventory is certainly in that range today. This bodes well for Todd’s projections.
Liz Gaines at New Tee Vee weighs in with her opinion here