Article from The AGE
by JULIAN LEE March 5, 2010
Advertising around online videos could eat up as much as a third of TV
budgets within the next five years, online publishers and leading media
buyers claim as the definition of what constitutes screen-based
advertising undergoes rapid change.
The body representing the major online publishers said this week that
by 2015 advertising around online video clips or longer-form content
could be worth $1 billion - a huge leap from the estimated $35 million
it is worth today.
Paul Fisher, chief executive of the Interactive Advertising Bureau,
based his estimates on his projection that online advertising will be a
$3.5 billion industry by 2014, with a third devoted to display.
Ads placed around video clips and on mobiles are expected to drive the growth in display ads, he said.
''I admit there isn't any science in it ? but I think it's a very real
scenario that about a third will be for video,'' Mr Fisher said, adding
that most, if not all, would be from TV budgets.
Mr Fisher's comments prompted a sharp rebuke from the Nine Network
sales and marketing director, Peter Wiltshire, who said that to portray
TV as ''the victim'' was inaccurate as marketers were increasingly
using both mediums together.
Comparisons between flat-screen TVs and online video footage viewed on a PC could not be made, he added.
''They are very different experiences. To compare a high-quality
experience on a flat-screen TV with that of online TV on a PC is
But two leading media buyers have backed some or all of Mr Fisher's predictions.
Gary Hardwick, managing partner of Ikon Communications, said that his
agency was already moving clients' budgets from TV to online video,
adding that allowing marketers to know who watched their ads and for
how long, gave online video a ''robustness'' that TV lacked.
Mr Hardwick said that if online videos, ads on mobile phones and clips
or shows streamed from the internet on TV screens were ''bundled
together then that figure sounds entirely possible''.
The managing partner of OMD, Leigh Terry, said: ''I don't think TV will be the only victim but it will be a significant one.''
He said as the definitions of audio visual advertising blurred clients
inevitably would be forced to choose between one medium and another.
''If the NBN [National Broadband Network] comes about then online
video, IPTV and TV ads will all be seen as one,'' said Mr Terry, who
predicts the market for online video would be $119 million by the end
of 2013 when PricewaterhouseCoopers predicts the free-to-air TV ad
market would have grown by 5.7 per cent to $3.2 billion.
Nine's Mr Wiltshire said it was simplistic to see a win for one medium
as a loss for another, especially when screen-based media fragments
into mobile phones, computers, iPads and TV sets. ''We [Nine and its
internet partner ninemsn] are already operating in a multi-platform
environment,'' he said.
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