Media Stream Ad Models Still Evolving
It takes time to watch all those streams, and in-stream ads are not part of the equation for many viewers.
Nearly 25 billion media streams were served in 2006, according to a new report by Accustream iMedia Research.
The study covered all entertainment and media sites, including ad-supported and subscription services, but excluding user-generated video delivered by progressive download.
The average user consumed 10.6 streams per month per site (excluding streamed video ads) in 2006. This was actually an 11% decline from 2005, thanks to increased competition among content providers — people went to more sites but consumed fewer streams on each.
Music videos comprised 36% of total streams served; news streams comprised 24%.
Streaming increased because there was better content to watch in 2006, according to Paul A. Palumbo of AccuStream. He also credited "old-fashioned syndication relationships with aggregators who can deliver audiences and began to populate emerging distribution platforms. Moreover, a growing base of high speed users and the adoption of Flash propelled the market."
A study by Insight Express conducted for Advertising.com in January 2007 confirmed news and video as the most appealing types of content for streaming.
Ads pay for some of the premium content that drove streaming growth last year, but eMarketer senior analyst and streaming video specialist David Hallerman stated that the market for streaming ads may have built-in limits.
"The current video ad inventory shortages both create higher CPMs and hold back a fuller flourishing of this market," said Mr. Hallerman.
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