• by Jack Loechner , Staff Writer @mp_research, June 27, 2004

Streaming Media Gets Streaming Advertising

A new report from AccuStream iMedia Research , Streaming Advertising and Subscription: A Complete Market Analysis 2003-2005, concludes that stream-based advertising (audio and video) will make up 37% of total streaming media revenue in '04, up from 28% in 2003. Subscription and stream-based advertising revenue, says the report, is forecast at $625 million in 2004, and expected to reach $864 million in 2005, according to a new report issued by market analysis firm.

"What's happened over the past two years, is that agencies, rep firms, solutions providers and content sites have recognized that as streaming media has grown in reach, it can in fact be supported by advertising." commented Paul A. Palumbo, research director at AccuStream. Upfront sales indicators suggest an even more robust market in the fall of '04 and into 2005.

Sites are incorporating a variety of traditional and newly launched ad unit formats and approaches, including pre-roll ads, ads running inside subscription streams, Java video ads that are not tied directly to a requested stream and between-the-page ad units.

As for subscription, streaming and download music services are forecast to make up 39% of the $384 million dollar market in '04, followed by platform services such as SuperPass, and professional sports league programming at 24%.

"Advertisers understand the impact of visual messaging, particularly to targeted audiences," said Palumbo.

You can find out more here.