Multimedia ad forecast to reach $12.6 billion

New multimedia venues are predicted to have a huge impact over the next four years. By 2012, multimedia platforms in the US alone, are expected to pull in more than $12.5 billion. Broadband ads are expected to account for about half of that amount.

by Kristina Knight

In 2007, multimedia venues (Broadband streaming/downloadable media, VoD and DVR/Non-linear television, and Mobile Information and Entertainment) brought in $1.8 billion. The majority of the spend at this point is from the broadband streaming category. By 2012 the spend is forecast to reach more than $12 billion. The biggest part of the spend will still be from broadband (about 60%) but the Mobile segment will have risen dramatically to account for about $4 billion.

Harry Wang, Senior Analyst, Parks Associates said, “There must be interest alignment among major stakeholders to avoid frictions. . .The next five years will be an exhilarating period, both for technology vendors who bring in innovation and for publishers who balance audience reach with target precision."

The big draw for multimedia ad platforms is the targeting aspect. Advertisers will be better able to target content and consumers through these portals. With great targeting capabilities there will also be more accountability during the life of a campaign to change and adjust as consumers begin to respond.