Evidence is piling up that the online video ad market is taking off. On YouTube, the percentage of days with tandem masthead or expandable ads, the big ticket ad purchase, made huge gains over the course of last year.
Yes, it looks like there is a big drop off in the first quarter of every year, but it is most likely a seasonal decline after elevated holiday ad spending. Nonetheless, this quarter is still up approximately 150 per cent from a year prior. What’s more YouTube has sold out of its oversized masthead ad units on 85 per cent of the days this quarter.
As the standard bearer of online video, YouTube’s success stands as a barometer of sorts for the entire industry—which made huge strides in audience engagement last year. Advertisers are buying more video ads, which means they like what they’re buying.
Photo: Company reports, Macquarie Capital (USA). February 2012
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.