Early days for online video revenue, suggests IAB report
The impact of video on Australia’s online advertising economy is yet to have a major effect on revenue, according to new data from the Interactive Advertising Bureau.
The latest Online Advertising Expenditure Report, compiled on a quarterly basis by PricewaterhouseCooper, includes estimated revenue from video advertising and email for only the second time.
According to the report, spend in video for the fourth quarter of last year was $5.3m, while for email it was $9.3m.
However, this was against the backdrop of online ad expenditure for 2009 of an estimated $1.87bn, up 9.4% on the previous year.
Overall spend in general display advertising rose 7.2 per cent to almost $500m, while search and directories rose 17.1 per cent.
Classifieds experienced a slight decline of 2.3 per cent, which brings the end of consecutive increases year on year since the report began.
The finance sector remained the highest spender among marketers, while the FMCG, retail and government sectors all reported growth in spend during the year. Government expenditure is expected to continue to grow throughout 2010 with the Federal election slated later this year.
IAB chief executive Paul Fisher predicted revenue will pass $2bn this year. He said: “In 2010, advanced standards and guidelines for online advertising, local research, and standardized online audience measurement will further accelerate investment in online advertising to surpass $2 billion this financial year and calendar year.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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How did FMCG and retail growth get missed in the coverage of this?
Waited a long time.
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I don’t watch the ads in online videos, they take too long and are never relevant.
Instead I mute it, and go and surf some more in a different tab or application. Then I return to the video, and watch just the content from the start.
The most advertising there should ever be in an online video is a three second sting at the start.
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