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The company J'son & Partners Consulting presents the results of market study of online video content sources in Russia and the world monitored by the company since 2009.
In the last few years the market of online video is one of the fastest growing segments of the Russian Internet. The global online advertising market by the end of 2010 showed an increase of 18.5% compared to last year, reflecting the continuation of its sustainable development.
The USA preserves the leading position in the online video advertising market with a share of 40%. On the other hand, there can be observed a slowdown in growth of the major players, which indicates a certain level of market saturation in these countries. According to J'son & Partners Consulting research results, in 2010 the Russian Internet advertising market showed the most dynamic development.
But the poorest results in terms of growth among the countries covered in the study were shown by the most advanced to date U.S. Unique users number increase, viewed content units growth and total time of video viewing attach to online video advertising segment the role of driver of the global online advertising market. The share of video content consumers among Russian Internet users reached 49% in 2010, which amounts to 27 million people.
The growth of online video advertising market will be ensured, primarily, by the novelty of the format and its high rate of CTR in relation to other advertising media. Market sources with video content are characterized by the early stage of development, relatively low-risk and easy entry for new players. Video advertising is one of the fastest-growing opportunities online today, as well as one of the most promising online advertising formats. Despite the surge in interest in digital video by both the consumer and advertiser, there are still many components of video advertising that are confusing, making the need for standards and best practices essential. For this reason and to address the need for greater business awareness around the potential that online video advertising offers, the International Advertising Bureau (IAB) has released an overview guide to make sense of the online video advertising business. During the early 2000s, as the Internet valuation bubble burst and the interactive industry regrouped, digital video progressed slowly. As the interactive industry rebuilt, leaders such as Microsoft's Windows Media Player, Yahoo's Launch, The FeedRoom, and MSNBC's video content inched the industry forward by selling "test" programs to blue-chip advertisers who wanted to learn about the medium and gain insight. At this point, many believed that the future of digital video content lay in a subscription, rather than an ad-supported, business model. These were the first broadband upfronts in the history of advertising and the move proved to be transformational, positioning Starcom Mediavest as a leader in video advertising. Clients like Procter & Gamble, McDonald's, Kellogg's and Coca-Cola allocated millions of dollars for digital video and immediately focused media buyers across the industry on the value of premium online content. Unlike 1998, however, advertisers, agencies, and publishers now had experience with online display and search advertising and were ready to expand their budgets to include digital video. Meanwhile traditional television marketers easily understood the power of digital video's sight, sound, and motion and began to take interest in online's video advertising capabilities. According to eMarketer, digital video grew to a $775 million segment in 2007 and the same source predicts rapid growth by 2011 with $4.5 billion in online video ad spending. The operating ecosystem for video advertising can be complex and contains various entities, all of which play a different but vital role in the development, production and distribution of video advertising. In an environment as fluid as the Internet, these roles are sometimes blurred and can be confusing.
With tens of millions of videos available online today and millions being added each month, consumers can view videos never before accessible through traditional mediums like television.
Consumers can effortlessly go from watching a professionally produced television show to a 10-second clip of a friend describing their first year away at college. Premier programming: gives users professionally produced content, generally, re-purposed from broadcast video and cable networks. There is a large amount of professionally produced video that has not been digitized but is quickly working its way online.
Professionally-generated specialty programming: video content professionally but generally created for a specific subset of online video consumers. Whether it is original content for the web or content from traditional media like local news or community events, consumers are searching for and consuming video content relevant to their micro interests. User-generated video: consists of clips created and uploaded by everyday people and make up the largest volume of videos available online. Generally, the majority of these clips are watched by a small group of users but due to viral word-of-mouth messaging some become extremely popular and are viewed by millions. While these categories may vary in production quality, time length, and resolution, consumers are drawn to each category for different reasons and a variety of video ad products have been developed to best fit each of these different experiences. In May 2006, the IAB broadband committee (now the digital video committee) defined a video ad as a commercial that may appear before, during, or after a variety of content including streaming video, animation, gaming, and music video content in a player environment.

This definition included "broadband video commercials" that appeared in live, archived, and downloadable streaming content.
Since 2006, both the experiences and consumption of video content has evolved significantly. Through 2007 and into 2008, the most common digital video ad experiences were either viewed within or around "in-stream video", "in-banner" or "in-text" formats. In-text video is generally user-initiated and triggered by relevant highlighted words within content.
Due to the fact that in-banner video advertising and in-text is generally tracked and operationally supported as a rich media advertisement, the major focus of this document will be on in-stream video advertising.
While these three video ad types currently make up the majority of video ad inventory, there are other available methods of triggering a video ad experience, including brand integration like sponsorships and branded content. Another area of innovation in video advertising is to advertise entirely outside of the video all together, or within the perimeter of the video, leaving the video stream ad-free - this practice is generally referred to as an advertising "skin".
In-text video advertising is similar in that it does not require video content to deliver a video ad. In-text video highlights words and phrases within the text of web content and links the word to a relevant video advertisement. Linear video ad: is presented before, in the middle of, or after the video content is consumed by the user, in very much the same way a TV commercial can play before, during or after the chosen program. One of the key characteristics of a linear video ad is that the user watch the ad instead of the content as the ad takes over the full view of the video. Because a user cannot experience the intended video content during a linear video ad impression, the ads are either placed before the content (also referred to as pre-rolls), between the content, or after the content.
Note: the term "pre-roll" is also regularly referred to as a 15 or 30 second spot, but in this document "pre-roll" is used consistently as a description for the placement of the ad which is preempting the start of the video. Non-linear video ad: runs parallel to the video content so the users see the ad while viewing the content.
Both linear and non-linear video ad products have the option of being paired with what is commonly referred to as a "companion ad". Companion ads: commonly text, display ads, rich media, or skins that wrap around the video experience, can run alongside either or both the video or ad content.
The primary purpose of the companion ad product is to offer sustained visibility of the sponsor throughout the video content experience. Companion ads may offer click-through interactivity and rich media experiences such as expansion of the ad for further engagement opportunities. The video ad products that publishers and vendors sell to media buyers are generally a combination of linear, non-linear and companion ad products packaged together in a compelling way. In MSN's video player example to the right, a linear video ad plays before the video content and is accompanied by a clickable, expanding 300 x 250 display companion ad product.
In this example by heavy, a 1020(w) x 620(h) ad unit surrounds a video for the duration of the program and actually becomes part of the viewing experience. Vibrant media's screenshot to the right shows a user mousing over a relevant word which triggers a relevant video advertisement. This screenshot illustrates a non-linear overlay ad format with an accompanying companion ad to the right of the video. The core metric used for currency in digital video advertising is a "digital video ad impression", also referred to as a broadband video commercial impression as described in the IAB's broadband video commercial measurement guidelines released May 2006. In 2006, the IAB's broadband committee and measurement task force developed a set of broadband video commercial measurement guidelines.
Specifically, these guidelines determined at what point a video commercial is counted by defining a video ad as a commercial that may appear before, during, and after a variety of content including streaming video, animation, gaming, and music video content in a player environment.
The key point to this guideline is that the video impression is measured at the latest point possible in the delivery of the ad creative to the user's browser, which is the closest opportunity to see by the user. The 2006 measurement guidelines are still the basis for the currency of video buys in 2008, specific to in-stream, linear and most non-linear video ad products. In the future as the IAB embraces new non-linear ad formats into the mix of standardized video ad products, careful attention will be paid to determining the proper currency metrics for these new formats where appropriate. Other non-currency measurement metrics exist today but because of the amount of innovation in the medium, none have become standard. The buyers of digital video advertising include the interactive and traditional ad agencies and extend to major marketers, long-tail marketers and resellers. Today, most buying of digital video is being done by interactive agencies on behalf of the major marketers. The sellers of digital video advertising range from the largest portals and media companies to the most specialized user-generated content sites on the web. The major online portals and broadcast media companies comprise the bulk of the video traffic and all have made strategic moves in both the content and technology space to insure their leadership positions.

CPM-based pricing is the predominant model for buyers, particularly the In-Stream, Linear Ad format (pre-rolls, post-rolls, etc). CPMs can span a wide range and are based on a number of factors including the quality of the site's content and users, targeting capabilities, and individual programming. The CPA and CPC models are also available and are the predominant measures for in-text video advertising. These buying models are helping to bring large, direct marketing advertisers into digital video and long-tail marketers or "mom and pop shops" that have not had a place in the medium in the past. Many brand-based advertisers believe the CPA and CPC models lend accountability to brand-based advertising where other media have traditionally struggled.
There are many components of digital video advertising that have yet to be standardized, including creative units and new metrics.
While the video industry is still relatively young, the IAB digital video committee recognizes the importance of simplifying the buying and selling process as an impetus for further long-term growth. Originally written by the Internet Advertising Bureau Digital Video Committee for IAB and first published on January 1st, 2008 as "A Digital Video Advertising Overview". The IAB digital video committee is comprised of IAB member companies who are committed to creating and implementing a comprehensive set of guidelines, measurement, and creative options for interactive video advertising.
In TNS Connected Life study, it found that one third (33%) in mainland China, 32% in Hong Kong, watch online video every day, on either PC or mobile devices. Because of the high content quality in online video market, online video advertising market is performing good in Q3 2014.
It is estimated that mobile video advertising market share is expected to increase in the near future as popularity of mobile device as well as rapid development of 4G in China.
About CeciliaCecilia is a writer at CIW, graduated from Nanjing Normal University, majored in English. Today, more and more people are starting business enterprises as a way to offset risk, create addition al lncome, or change careers altogether. With the growth rate of 42% it has become the fastest growing segment of the advertising industry in the world.
According to J'son & Partners Consulting forecasts, the popularity growth of video portals every year will be about 25% up to 2015.
Advertising business model is the most common of among video portals and allows to receive most of the income.
The emotional draw of the television experience, consumers' adoption of broadband, and subsequent change in Internet content, capabilities, and consumption all contribute to driving this growth. To leverage and navigate the fast growing online advertising marketplace, a basic familiarity with web video industry standards like key terminology, perfomance metrics and video ad formats has become a critical necessity. An explosion of companies from networks to content providers made both premium and user generated video content available as new revenue streams.
For a $1.65 billion purchase price, digital video was back on the front pages of every newspaper around the world. While the 2006 definition of a video commercial is still relevant today, newer video ad formats have been introduced to compliment these emerging types of video experiences and environments. Traditional agencies and buyers of traditional media have lagged thus far, but are entering the marketplace. To take advantage of incremental video advertising revenue many websites are now choosing to deploy in-text video advertising within their content pages. Additionally, the committee will educate markets and agencies on the strength of broadband as a marketing vehicle. If you are new here, you might want to subscribe to the RSS feed for updates on this topic. China took the second place on the dynamics of the Internet advertising market in 2010, it grew by 35%. Progress at agencies where digital buyers are working closely with traditional buyers presents a powerful model for the future. Good rates, at the level of 30%, were shown by the developing countries such as India and Brazil. But the results of the saturated markets of Western Europe and North America were rather moderate.
By 2020, 54% of all French video revenue will be generated via programmatic channels.a€?Italy is a programmatic video market waiting to happen, and we expect the market to explode in late 2016 and 2017,a€? Knapp said.

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