AFI BLOG: Media and Technology

Funding Amounts of Online Video Startups - Hip Mojo

Daily Motion is escalating the battle for #3 in their space (after YouTube and MySpace TV).

Online video advertising is growing, quickly.

Online video advertising is where search advertising was in 2000-01: a major part of the web ecosystem desperately looking for a business model.

Unlike search - where traditional media companies failed to invest and even new media companies gave up in favor of portaldom - a lot of companies are vying for online video supremacy. My read on it is that we will never have a Google of video. That’s right, even YouTube - incidentally owned by Google - won’t command the kind of revenue within its segment that Google does. The reason for that is lack of competition and monetization ability. On the former, YouTube has a lot of competition in the monetization race.

Either way, looking at the stats, the numbers are impressive:

An estimate of the US online video ad market for 2009 - set in 2004: $657 million
An estimate of the US online video ad market for 2009 - set in 2005: $1.5 billion
An estimate of the US online video ad market for 2010 - set in 2006: $2.3 billion
An estimate of the US online video ad market for 2010 - set in late 2006: $3 billion
An estimate of the US online video ad market for 2011 - set in 2007: $4.3 billion
An estimate of the Worldwide online video ad market for 2011 - set in 2007: $10 billion
An estimate of the US online video ad market for 2012 - set in late 2007: $7.1 billion
An estimate of the US online video ad market for 2012 - set in early 2008: $6.6 billion (all broadband at $12.2B)

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