According to a new report from DFC Intelligence, a research firm focused on interactive and digital entertainment, streamed advertising supporting audio and video programming online will generate $138 million in 2001.
But the DFC says that advertising is expected to be in less than 10 percent of the streams served. The 300-page report, dubbed “Streaming Ad Insertion and Commerce,” contained detailed data on total usage, number of avails, avail sell-out and Cost per Thousand (CPM) ranges for hundreds of sites.
The report’s author, Paul Palumbo, maintains the relatively small size of streaming advertising parallels revenue growth in other media. “Cable TV advertising was worth only $50 million in 1980. Today it is worth over $13 billion. There continues to be substantial growth in streaming usage for both audio and video programming, and these are loyal users. Because advertising in streaming media can be a very effective way to reach a highly targeted and qualified audience, we see strong long-term growth potential for this market, particularly for cross-platform brands.”
The report predicts that over the next few years there will be a major change in the online advertising market. Rich media advertising is forecasted to surpass other forms of online advertising within five years. The report indicates that about 63 percent of Internet audio broadcasters have actually deployed, or have the capability to deploy, in-stream advertising. There are a total of 1.8 billion audio avail opportunities per month, with CPMs ranging from $5-$60.
DFC will soon begin to offer Streaming Avails Report (SAR), a monthly research service that details media buying and selling in audio and video streaming.