Video advertising is a huge market. According to eMarketer estimates, digital advertising revenue accounted for $42.6 billion in 2013. Video advertising represents around 9.7% of that amount at about $4.15 billion. This is why several Internet companies are aggressively acquiring video advertising companies.

Total advertising revenue amounted to $171.3 billion in 2013, according to estimates provided by eMarketer. Digital advertising accounted for a quarter of that (or $42.6 billion).

Digital video advertising amounts to just a small piece (9.7%) of all digital ad revenue – an estimated $4.15 billion. It accounts for an even smaller share of all advertising revenue across platforms – just 2.4%.Still, digital video advertising is growing rapidly at 43.5% year over year. By 2017, eMarketer projects that digital video advertising will make up 15% of the total digital advertising market.

Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013

Online video ad viewing exploded in 2013. Over 35 billion video ads were viewed in the U.S. in December.

Major Video Advertising Deals In 2014

Yahoo! Buys BrightRoll For $640 Million

AOL Buys Adap.tv For $405 Million

Facebook Buys LiveRail For About $400-$500 Million

YouTube Grabs Highest Marketshare

Google’s YouTube has the lion’s share of the video ad network. YouTube reportedly generated about $850 million in video advertising in 2013 alone, according to eMarketer. That would be roughly 20.5% of the $4.15 billion digital video ad market. YouTube will attract more than $1 billion in video ad dollars this year: The site has a greater effect on consumers’ purchasing decisions than Facebook, Twitter, or Google+, according to a September report on social media advertising from AOL Platforms. YouTube now commands an audience of 1 billion users, according to expandedramblings.com statistics -- creating a revenue of US$4 billion in 2014. In addition, YouTube views are now over four billion per day with 300 hours of new videos being uploaded every minute.

Facebook Video ads

Facebook on the other hand, has some pretty amazing statistics of its own. According to expandedramblings.com Facebook hit 1.49 billion active monthly users last month. In December 2013 Facebook started testing Premium Video Ads as a way for advertisers to drive branding objectives on their platform. In March 2014 these ads were introduced to a select group of advertisers. Facebook went on to introduce its mobile video advertising product in late 2013. When this happened,marketers all across the globe were anticipating a huge rivalry between YouTube and Facebook for ad revenue and advertising space. They were not wrong.

On July 21 Facebook unveiled its upgrade to their video platform, making available some powerful new tools for advertisers. These new upgrades align the Facebook video-publishing experience more closely to that which YouTube was already offering. Facebook has annonced that all of these changes will be rolled out globally over the next few weeks.

Many regular Facebook users on mobile have complained that the auto-play on Facebook videos is eating their precious data. There is, however, a setting in Facebook under "video" that allows users to turn off autoplay when not on Wi-Fi. This solves the data usage problem. However, last month (July 2015) Facebook launched Wi-Fi only ads as an option. This will serve to eliminate the problem for users watching their data plan usage. A test was run and the conversions went up significantly on Wi-Fi only ads

The digital video ad market will grow faster in 2014 than future years.The U.S. digital ad spend will grow to $5.9 billion this year, up 56 percent from 2013, according to eMarketer data released last week. But that growth will cool in future years, declining to 13.9 percent by 2018, when the total digital video spend will reach $12.82 billion, eMarketer forecasts.

Future of video ads in the online market place

- Videos increase people's understanding of your product or service by 74 per cent.

- 75 per cent of users visit the marketer's website after viewing a video.

- An average user spends 16 minutes 49 seconds watching online video ads every month.

- Website visitors are 64 per cent more likely to buy a product on an online retail site after watching a

video.

- 26 per cent of Internet users look for more information after viewing a video ad.

There is no denying the importance of video and the necessity for advertising in this ever-increasingly

popular medium.

It would seem that Facebook video ads have more appeal when compared to YouTube ads appearing in

a Facebook news feed.

AdParlor has run some beta tests comparing the two methods and have found that "the native Facebook-

hosted videos performed much better on numerous KPIs.

- 2.5 times higher CTR (click through rate) -- meaning how many users see the video and click to the ad

- 30 per cent higher video play rate (number of clicks on the ad unit which are video play clicks)

- 10 per cent lower cost per engagement (eg post comments, shares and likes)

- 3.5 times lower CPC (cost per click)

- 5.5 times lower cost per video play

So who has the upper hand in this war for video-advertising space?

Early in 2014 YouTube links were promoted twice as much as Facebook links. But in 2015 this changed

drastically. The sharing and engagement potential of Facebook has caused this social network to leap to

the fore. In January 2014, for example, YouTube held 35 per cent of the share or interaction of video

posts while Facebook held 55 per cent. By November these numbers had switched and YouTube was left

with 15 per cent while Facebook was grabbing a whopping 80 per cent. Other video-sharing networks

such as vimeo, etc, held 5.0 per cent.

Although YouTube is still holding its own as the dominant player in online video viewing, Facebook is now

becoming a major video player with its extensive reach, and it only intends to get stronger.

One thing that is glaringly obvious is that video ads are a very important aspect of your online marketing

campaigns. The key here, as this has become a very competitive space, is to have properly created

videos with a powerful call to action and clearly defined benefits to your potential customers.Video aqs

Various Video ad Platform

YuMe

As one of the leading video ad technology companies, YuMe understands

the needs of marketers and their agencies to deliver results through effective and efficient delivery of

their video campaigns across all screens. With brand-safe content, unmatched data and analytics,

powerful reporting, and tremendous reach, they offer the tools marketers need to make connections

with consumers and meet their campaign goals.

VPN - Video Performance Network

Video Performance Network is the Premier Video CPA Network that is

unleashing revolutionary new standards in Video and Affiliate Marketing. Clickthru rates on Video

are tremendously higher than banner click rates. Their platform levels the playing field by allowing

Affiliates and Advertisers to cooperate and share in the rewards of advertising through Video.

VideoNap

This pack of people live with one passion only - to find and create as many

platforms of entertainment communication as can possibly exist over the Internet! This includes live

TV broadcasting, Mobile TV, Video On Demand to mobiles, Internet TV box, social network portals,

web marketing portals. Their vision is to bring global communities together and provide virtual home

environment - Anywhere - Anytime.

Vdopia

Vdopia is the largest Video Ad Network and Video Ad Platform that targets

Indians across the world. It provides advertisers opportunity to advertise on the most premium online

video content available on the internet. The company's proprietary BrandConnect Ad technology

combines the advantages of TV and Internet and provides unprecedented value to large brand

advertisers and publishers, allowing Vdopia to deliver industry leading CPMs. Vdopia is a video ad

network that has managed to monetize online video content effectively, this has resulted in massive

growth in online video across all Indian websites.

Value Click Media

ValueClick Media offers innovative performance advertising solutions across

its display and lead generation platforms. They leverage their twelve years of experience, proprietary

data from across ValueClick, Inc., direct relationships with 8,000 sites, real-time bidding into major

exchanges and their market-leading ad targeting and optimization technology to consistently deliver

direct response and brand marketing performance of the world's leading online advertisers.

UnderTone (acquired Jambo)

With their syndicated player, content management and ad delivery

technology, Undertone delivers premium video inventory, giving marketers a new distribution

channel for in-stream video married with high-value, branded content. And, the user-initiated or

above-the-fold in-banner placements ensure the ads will be seen.

Tremor Media (Acquired ScanScout earlier in year)

Tremor Media is a leading online video advertising network providing

advertisers with video advertising opportunities on over 2,500 in-stream sites and over 5000 in-page

sites comprised of top-tier publishers with more than 190 million unique visitors per month. Tremor

Media also offers the patent-pending Acudeo Video Monetization Platform for publishers, a full suite

of products and services to monetize streaming video and maximize ROI. Tremor Media's full

service solutions offer tools for advertisers and publishers to utilize online video advertising as a

powerful interactive medium.

SpotXchange

Just as Google and Overture revolutionized the search advertising space by

creating a frictionless marketplace, the SpotXchange platform connects advertisers and sellers in a

transparent and efficient marketplace where supply and demand are matched in real-time.

SpotXchange has partnered with hundreds of publishers who represent tens of thousands of sites

and tens of millions of daily video impression opportunities. Advertisers of all shapes and sizes, from

small local businesses to Madison Avenue's largest brands, currently advertise on the SpotXchange

network.

Specific Media (acquired BBE)

Specific Media is one of the world's largest independent media platforms

and enables display advertisers to target consumers throughout North America and Western Europe

based on demographics, behaviors, geographic locations and the contextual relevance of websites

visited. Specific Media's premium display network reaches nearly 160 million US consumers and 260

million consumers globally each month. As part of its continued effort to provide innovative, impactful

solutions to brand advertisers, Specific Media wanted to expand its footprint beyond display into

video. BBE Inc was an ideal partner with expertise and leadership in all elements of video

advertising from the monetization (BBE Media) to tracking (VINDICO) to original programming (BBE

OP).

ScanScout (aquired by Tremor Media)

Founded by two friends from MIT in 2005, ScanScout is the web's largest in-

stream video ad network, helping top brands engage their target audiences in high performing,

100% brand-safe environments. Their "secret sauce" is their  proprietary SE2 technology which

analyzes audience behaviors to find the segments advertisers want, and catalogs billions of content

data points across their network of sites, allowing us to determine the category and safety of an ad

destination before it is served.

SAY Media (formerly VideoEgg, recently purchased SixApart)

The SAY Media platform brings together VideoEgg's rich advertising platform with

SixApart's suite of content creation and aggregation tools to power advertising campaigns that are

more conversational and interactive. The result is advertising that is more efficient, useful and social.

Monsoon Ads

Monsoon Ads is one of India's largest digital Video Ad networks connecting

advertisers and ad agencies to Indian audiences worldwide on major video content Internet portals

and mobile applications. Monsoon empowers advertisers and brands to reach highly targeted

audiences viewing on-demand video content on the internet and mobile mediums through its state of

the art technology and its premium publisher network. Online Video views are growing at an

unprecedented rate and Monsoon enables advertisers to leverage this paradigm shift in content

viewing trends. Monsoon's flagship advertiser base includes major brands such as MapmyIndia,

Lenovo (India), Dish Networks, Star TV, Comcast (US).

Microsoft Advertising

Microsoft Media Network is an ad network of top-ranked commercial sites,

which now gets you in front of an even larger audience with the addition of such high-traffic sites as

The Wall Street Journal Digital Network, CNBC.com, and Bing, just to name a few. Their ad network

is broad, giving you a way to connect with audiences either on a targeted or a performance basis, for

excellent reach on a network you can trust.

Hulu - US-only

Leverage one of the web's leading premium content libraries to effectively reach

millions of consumers whenever they watch online. Serving hundreds of millions of streams per

month, Hulu is a Top 10 online video property featuring an immense collection of premium

entertainment across all genres and formats — television shows, feature films, clips and more,

regardless of network or studio.

Collective

They have always believed that the most effective advertising comes from

the intersection of the right ad, targeted to the right person, in the right environment. Not as easy as

it sounds. Analyzing the billions of data points in their AMP Audience Cloud, and finding the right,

top-tier inventory on the Internet takes experience and know-how.

CBS Interactive

CBS Interactive offers the ability to buy advertising directly through a self service ad store! Purchase

inventory across a variety of leading online brands including CNET, CBS.com, TV.com, Gamespot,

CBSSports.com, Chow, Urban Baby and many more.

BrightRoll

Led by a team of Internet advertising veterans and engineers, BrightRoll has

served billions of advertisements since they started. They achieved this growth by enabling agencies

and brand advertisers to execute smart video ad campaigns across the industry's leading publishers.

Three-quarters of the top 50 advertising agencies work with BrightRoll to execute campaigns for

their premier brands. By offering full site disclosure, detailed performance reports and flexible

targeting, they provide advertisers with the reach, frequency, scalability, and transparency needed.

Break Media

Through their branded properties and the Break Media Network reach over

70 million men aged 18-34 each month. Break's wholly-owned properties include: Break.com,

MadeMan.com, Chickipedia.com, CagePotato.com, HolyTaco.com, ScreenJunkies.com,

AllLeftTurns.com, and FileFront.com.

Auditude (also owns Crosspoint Media)

Their platform helps satisfy the increasingly complex requirements of video

advertisers while benefiting from multi-party demand. Auditude enable you to engage multiple

sellers, turn on integrated ad network demand, and apply complex advertising rules like category

exclusions, sponsorships, share of voice, composite ads, in-stream pods, ad pacing—and more.

Advertising.com

Advertising.com is the technology, data and insights arm of AOL

Advertising. At the heart of Ad.com's technology is AdLearn, the most advanced optimization and bid

management system in the business. AdLearn has processed up to ten billion transactions per day

for the past ten years.

AdSolution

LongTail's AdSolution includes Premium Ads which are advertisements from

high quality advertisers and Ad Networks. Many Premium Ad Networks have minimum volume

requirements in order to directly work with them. AdSolution provides publishers, who do not meet

those minimum volume requirements, a way to work with Premium Ad Networks. Sample Premium

Ad Networks include Google's AdSense for Video, Scanscout, and Yume. The AdSolution is

LongTail Video's self service Video Advertising Network used by thousands of websites which

serves hundreds of millions of Video Ads monthly. Websites that use the JW Player can sign up and

start running Video Ads in minutes.

AdoTube

AdoTube provides agencies and advertisers with premium in-stream atop

relevant video content, helping media buyers utilize the video space efficiently and effectively to

accomplish various goals: branding, tune-in, engagement, return on ad spend, leads, etc. AdoTube

has worked with leading brands such as Federal Express, ABC, AT&T and Fox and has partnered

with top digital agencies, including: Media Contacts, Mediaedge, OMD, Avenue A, and many others.

Adconion

Online video advertising, a natural extension of the successful TV format,

combines the power of the moving image with the interactivity and target-ability of the web. Adconion

offers targeting technology, a breadth of video advertising executions and creative production

studios.

adBrite

adBrite's Exchange provides a yield management solution. Their advertisers

range from small local companies to world-wide advertising agencies, to demand side platforms, real

time bidders, ad networks, and everyone in between.

Adap.tv

adap.tv develops video advertising trading, serving and management technology.  The adap.tv

marketplace (atm) is an online video advertising marketplace. atm connects advertisers, agencies,

publishers and ad networks with a robust marketplace to make smart buying and selling decisions in

real-time. adap.tv is also the creator of OneSource, an online video ad serving platform.

Video Ad Networks - Video SeedingYouTube Promoted Videos

Whether an AdAge 100 advertiser or a local retailer, everyone can

broadcast their ad campaign on YouTube and tap into the world's largest online video community

with promoted videos.  You can easily drive additional views to your videos on a cost-per-view basis

and doing so allows you to place an overlay ad on your video directing users back to a URL of your

choosing.  You can learn more about the benefits of YouTube Promoted Videos here.

TubeMogul PlayTime

TubeMogul delivers video views for any online video campaign . They offer

advanced targeting capabilities in the industry, transparency and robust campaign measurement.

Sharethrough

Sharethrough is a social video advertising platform and distribution network.

Sharethrough's customers include top brands, media and creative agencies. The company has run

over 200 social video advertising campaigns, including some of the most watched brand videos to-

date. Founded in 2008 by Brett Keintz, Dan Greenberg, Matt Monahan and Rob Fan, Sharethrough

is based in San Francisco.

Alphabird

AlphaBird enables video content producers to engage a guaranteed target

audience with their video through a network of website publishers, social networks, mobile devices,

and digital out-of-home devices. AB guarantees delivery of any video to any desired audience on a

performance basis. AlphaBird was founded and is managed by online video industry veterans from

ValueClick (NASDAQ: VCLK), InfoSpace (NASDAQ: INSP), and Sony (NYSE: SNE).

Misc Video Ad SolutionsSocialAds (by TwitVid)

Over 100 million people visit Twitter every month and use Twitter to get the

latest news and updates from businesses they like. Building and engaging a Twitter audience is

important for social media marketing. SocialAds can help to get more Twitter Followers and

Retweets using online video.

AffiliatePLY

AffiliatePLY, a PLYmedia division, is a video ad network that enables video

distribution and monetization, based on various commission models.  It enables advertisers to gain

from the power of affiliates, by re-purposing their commercial or tutorial video content and by

enabling for distribution of their video and campaigns based on action rather than

impressions. Publishers can provide their viewers with an interactive video experience and earn

money for directing relevant and meaningful viewers to the video advertisers.