There are some interesting statistics on the growth of the online video advertising business by eMarketer here showing that it is growing in the US faster than any other category.
An interesting observation is that, despite this, there seems to be downward pressure on pricing in the US, whereas I'm seeing CPMs being upheld in the UK, especially for VAST and companion related ads.
The industry still has a number of challenges:
- finding adequate inventory over the handful of mainstream 'publishers'
- matching CPM to delivery
- monetising the long tail
- indexing and targeting the video ads
It's interesting to note that the banner ad on top of one of VidZapper's clients, Filmbeat.tv consistently generates over £12 CPM, which is more than the £8 net the site gets for its video adverts.