Online-Video Changes: Facebook Growing, Pro-Content Attracting Ad Dollars

comScore’s February data once again shows Google’s dominance in the online-video market, but Facebook is catching up. It’s now the fourth-largest online-video sharing property (see Facebook’s unofficial resource for more information). Facebook, as a sharp contrast from other sites, has short bursts of viewing (far shorter durations than other properties like YouTube, Hulu or Viacom (see BroadbandTV report).

comScore has a nice presentation that shows the “radical” growth of the medium (see download), and the total people relative to streams. It seems that the longer format of professional content (basically TV shows streamed online) is attracting a greater portion of advertising today.

Growth of streams and peeps from 2006 through 2010 (comScore)

To me, the most interesting part of this report is the acknowledgement that advertising dollars aren’t keeping up with the increase in online-video viewing. While this is probably true for the dawn of every preceding medium (radio, television, internet), it does suggest media buyers are in need of additional adjustments of the “media mix.” This requires better planning, and more creative built for the channel.

The ad budgets aren't keeping pace with online-video consumption

Because media-buying agencies (representing top brands) are more comfortable with television, it’s no surprise that Hulu is serving more ads per minute streamed. It’s familiar content and an easier format. Of course advertisers should be looking not just for “comfort” and targeting, but also “reduced clutter.”

Note that YouTube is not leader in advertising delivery (when you look at “ad views”). After Hulu, Tremor Media Video Network ranked second overall (and highest among video ad networks) with 503.7 million ad views, followed by ADAP.TV (432 million) and Microsoft sites (415 million).