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Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.
Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100% year-over-year monthly growth during the year.


Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up. Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats. Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the video ad market. Streaming devices and connected TV accounted for just 2% of online video ad views in the fourth quarter of 2013, but companies like BrightLine are experimenting with formats to grow this new niche market. Newly launched video ad platforms have been among the companies to adopt programmatic tools, including real-time bidding, ad exchanges, and advanced analytics. Examines how video ads stack up against other digital advertising formats in terms of both cost and performance.
Looks at the issue of viewability, and explains how the problem could impact future spending on video ads.
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