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We recently announced that we are larger than Hulu in video viewership as measured by Quantcast. This is an important milestone for the company and for the online video advertising business.
Here is the raw data:
Here is why this is important:
1. We Only Serve Video Ads. Hulu Serves Video Content And Ads. Yes, we are comparing apples and oranges — if you compared our reach to the reach of Hulu’s ads, there would be a much larger difference between our two networks. Agencies and advertisers often forget that the reach of a site is irrelevant, the only metric that matters to them is the reach of the site’s available ad inventory. As the gap between our network and Hulu continues to grow, it will become more and more clear that the most efficient way to reach targeted video audiences at scale are through video advertising networks.
2. TV Everywhere? More like Video Ads Everywhere. Although there has been a lot of press recently about TV Everywhere, the reality is that online video advertising will be far larger than online television. Why? Because online video advertising is being used by premium publishers to monetize all free content — including broadcast video, short form video, games, radio, social apps — and many of those publishers have much more reach outside of their video content area than within it. Plus, many premium publishers don’t have huge production costs outside of their broadcast content, so advertisers are flocking to more cost efficient placements.
3. By The End of 2010, The Majority of the Top Ten Video Properties Will Be Networks. As I recently predicted in MediaPost, this is beginning of what will be a long trend of networks and aggregators surpassing the largest video properties in total reach. By the end of 2010, the majority of the top 10 video properties (as measured by Quantcast, comScore or your preferred third party) will be video companies that don’t produce any meaningful amount of video content. This means the top 10 properties will be dominated by video ad networks (BrightRoll), video-sharing sites (YouTube), video syndicators (Grab Networks) and vertical video sites (Break.com). Yes, some of these players produce some content, but the vast majority of the views on their properties are generated from content they did not produce.
We look forward to continuing to lead the industry and driving innovations across our platform, pricing, targeting and research initiatives. If you share our passion about video advertising, please reach out or join our team.