• by June 15, 2004

Streaming media and Web video advertising are front and center these days.

Today there is word from AccuStream iMedia Research that streaming media advertising and subscription revenue could reach $625 million this year and is projected to hit $864 million in 2005. The AccuStream report, "Streaming Advertising and Subscription: A Complete Market Analysis 2003-2005, forecasts that stream-based advertising (audio and video) will make up 37 percent of total streaming media revenue this year. That's up from 28 percent in 2003.

AccuStream estimates that subscription, streaming and download music services will comprise 39 percent of the $384 million dollar market this year, while services such as RealNetworks' SuperPass and professional sports league content will hit 24 percent of the market. "Brand advertisers want the impact of video messaging delivered to high-speed users. And, in 2004 more branded content moved out from behind subscription services, inventory is increasing and CPMs (cost-per-thousands) are holding firm," said Paul Palumbo, AccuStream research director in a press statement.

Gentleman and ladies, start your engines.

If the report's prognostications are on track, there's a real opportunity for sellers of broadband video to ratchet up the volume on their sales efforts. I suspect that is exactly what they're trying to do right about now. While no one seems able to (or more realistically, wants to) fess up on estimates, guestimates or ranges with regard to broadband video bookings, my sense is that the landscape remains a work in progress. Sellers are creating a sense of scarce inventory, while buyers tap-dance around pricing and attempt to clarify objectives. Back and forth. Rally, volley, lob one down the line.

Pre-roll CPMs are in the $20 range, though some tell me they're higher. Reality or fiction?

While the broadcast upfronts have surely helped spur broadband and streaming video discussions and deals, sellers want and, in fact, need to continue the process on a year-round basis. Broadband video ad sales deals were not as integrated into the TV upfront process as they could have been this year. They appear to have been more additive in nature. This is due, in part, to agencies--interactive media specialists and broadcast TV buying groups--needing to become more aligned internally, and to clients not really knowing what they want and to a nascent, emerging marketplace.

And on a final note today, Gannett's USA Today.com reports a year-over-year increase in traffic of 54 percent to nearly 8 million unique visitors, according to Nielsen//NetRatings. The site refers to spectacular growth in its travel section with a 123 percent year-over-year spike to nearly 1 million unique visitors in May.