YouTube, others go after video ad dollars shifting from TV to Web


Ad agency Starcorm MediaVest has shifted over $500M away from TV in the last 12 months and has directed 3/4 of the sum towards online video, notes a WSJ column discussing the latter market's gradual encroachment on the former. MasterCard, Mondelez, and Verizon are among the brand advertisers embracing the trend.

It's not just video view growth that's contributing to the shift: Improved measurement tools from the likes of Nielsen (NLSN) and comScore (SCOR) are helping, as is a surge in professional-grade content and the growth of RTB/programmatic exchanges that enable better targeting. Demographics are another factor: Nielsen estimates 30% of Web video viewers are aged 18-34 vs. just 21% of TV viewers.

eMarketer estimates U.S. digital video ad sales rose 43.5% last year to $4.15B. Evercore has forecast a 37% CAGR through 2016. But for now, the U.S. TV ad market (worth ~$66B last year) remains far larger.

YouTube (GOOG +0.8%), estimated by eMarketer to have a 20.5% U.S. Web video ad share and faring especially well on mobile, is a clear beneficiary of the shift towards digital. The video giant recently made a fresh push for brand ad dollars by launching Google Preferred, a solution that lets advertisers zero in on popular professional-quality channels (and thereby avoid cat videos).

Other companies with strong online video ad exposure: AOL, TRMR, YUME

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