5 year outlook in Australia.https://www.frost.com/prod/servlet/market-insight-top.pag?Src=RSS&docid=230442843
| Five Year Market Outlook for Online Video Advertising Market in Australia |
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| Date Published: 18 Apr 2011 |
Australia Online Video Advertising market Outlook
Market growth will be very strong for Australian online videoadvertising over the next five years. Frost & Sullivan predicts thatexpenditure on online video advertising will increase from $35 millionin 2010 to $180 million by 2015, with a CAGR of 39%.
It will outperform all other major online general advertisingsegments, namely online display (banners), EDM/e-newsletters, andintegrated site content / sponsorships, driven by improved Internetdownload speeds and more long form content which enables multiple videoads to be displayed. Its share of the online general advertising marketwill increase from 6% in 2010 to 21% in 2015. In contrast, growth ratesfor other segments of the Australian online general advertising marketwill remain strong, but gradually decline as these advertising segmentreach a higher state of maturity.
Online Video Platform (OVP) providers in Australia are expected toexperience very high growth in revenue due to a comparatively smallbase, lower broadband costs and improved broadband services. The longform version of video is expected to pick up in terms of demand anduptake over the medium term (2 - 4 year period), with richer quality ofcontent, higher or unmetered bandwidth allowances and faster Internetspeeds, acting as enabling factors.
One of the driving factors will be the significantly high revenueopportunities through on-line advertisements for the OVP providers. Longform content will come into play on evenings and weekdays where theshort form currently dominates with its high yields, providing thedriver for stronger growth in mid-roll and post-roll video advertising.Video advertising yields will however slowly decline over the next fewyears as more inventory enters the market.
This article was authored by Phil Harpur, Senior Research Managerfor Frost & Sullivan's Digital Media practice, Australia & NZ