philip lelyveld The world of entertainment technology

19Mar/13Off

Web Video: Bigger and Less Profitable

“Spending on online-video advertising is expected to top $4.1 billion this year, according to eMarketer, up 41 percent from 2012,” notes the Wall Street Journal. But competition for a share of that is fierce, it adds. “…more than 217 different companies, including video ad networks and publishers, sold at least one million video ads in 2012, according to comScore. In comparison, about 21 media companies shared ad spending of $54 billion on national TV ads last year, according to Kantar Media.”

In other words, there is not enough to go around, according to Michael Bologna, director of emerging communications at WPP’s GroupM. “Ad buyers and some publishers blame the influx of inventory, combined with the rise of so called ‘programmatic ad buying’ — automated buying of ads through digital platforms — for pricing declines,” writes WSJ.

See the full story here: http://online.wsj.com/article/SB10001424127887324034804578346540295942824.html

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