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What’s The Bigger Market Opportunity? Online TV or Online Ad Exchanges

Friday, July 10th, 2009 – 2:54 pm

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Arash Amel, Screen Digest’s research director, digital media, said that the ad-supported online TV market (including Hulu) in the U.S. was worth $448 million last year and estimated that revenues will reach $1.45 billion by 2013.

ThinkEquity analysts Robert Coolbrith and Bill Morrison estimate that revenues in non-premium, non-reserved display advertising will go from $4.8 billion in 2009 to $11.4 billion in 2013. (see below)

Given all the hype and link love around online TV, this comparison is likely eye-opening for some.

More from the Screen Digest report on online TV:

“Based on the current online ad strategies implemented, [online TV ad revenues] will account for 2.2 percent of all US TV advertising revenue by 2013, but definitely won’t be generating enough to offset the $2bn we expect total US TV advertising to have declined by during in that period.”

Given an $8 billion increase from 2009 to 2013 in non-reserved display, it would appear some of the revenue comes to display from online TV – but even more budgets may go around TV (online or not) altogether.

How about TV ad revenue versus online, straight up?

If total U.S. TV advertising budget is roughly $66 billion in 2013 (using Screen Digest’s figures), according to the above chart, online will easily eclipse TV (traditional or online) with $85.8 billion in ad revenue 2013.

Are you ready?

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