eMarketer caused a stir a few weeks back when it decided to cut its estimate for video adverting by nearly two-thirds to $505 million. While that was a reality check for some, TVWeek’s Daisy Whitney points out that all current estimates of the size of the Web video market really aren’t worth the paper they’re printed on.
Why? They only measure Web video ads, which for many shows being produced for the Web are a small part of the revenue picture. Studios like Next New Networks, Revision3, ManiaTV and For Your Imagination, are generating more revenue from product placements, sponsorships and branded entertainment, which aren’t measured, than they are from pre-roll video ads, which are.
Revision3 might be getting paid a $20 per thousand viewers for a pre-roll ad before “Diggnation,” but when Kevin Rose holds up a Red Stripe, that’s $80. Shows like MindShare Entertainment’s In The Motherhood are created expressly for advertisers, but also aren’t included, even though an advertiser is paying the bills. Says Greg Goodfried, executive producer of LG15: The Resistance: “The vast majority of revenue we derive for our shows are from brand integration.”
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