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Online Video will not cover TV Advertising Deficit
Online TV represents one of the most marketable avenues for internet advertising over the next couple of years according to a report from Screen Digest, as advertising continues the shift online.
In the States, the four major television networks: ABC, CBS, NBC and Fox, along with online video streaming site Hulu account for 53 per cent of the online TV market share in the US, which last year generated a revenue of some $448 million through online advertising. The impressive revenue stream from what is still a relatively new media, is set to grow over the coming years according to the report.
By 2013 Screen Digest estimates that digital media platforms backed by broadcasters and supported with a rigorous advertising model will generate revenues of over $1.45 billion by 2013. The report claims that officially approved online video services from the major networks will continue to boom in online marketing as they hold the rights to shows being streamed.
Screen Digest’s Arash Amel said: “With better targeting and increased ad inventory, online TV services could be generating per-viewer revenues comparable to an average TV broadcast viewing in as little as three years.” Online TV is expected to be responsible for approximately 2.2 per cent of all US TV advertising by 2013.
Despite the growth of online advertising through TV streaming, Screen Digest concluded that the revenues made would by no means cover the expected deficit created from declining TV advertising revenues, which could lose $2 billion over the next three years.
Mr Amel said: “The challenge right now is to maximize the ad-supported online video business model...and explore more advanced methods of video advertising while there are still revenues from the traditional business to support the transition to multiplatform.”
Online Advertising news posted by Lily Townsend on 30 June 2009
