The video industry is growing fast. According to eMarketer video advertising on its own is considered to have the fastest growth trajectory versus all other online ad formats and is expected to surpass rich media display in terms of total ad spending. As David Hallerman, eMarketer principal analyst put it, “…the growing consumption of online video has done more to attract brands than any other online ad format.” 

Supporting Video Services Like Taboola are Further Proof

Along side the growing video industry, it’s interesting to see what supporting video platforms and services are growing and fast — such as real time exchanges such as, or syndication platforms like CineSports, 5min, NDN and video recommendation & distribution companies such as Taboola that can now celebrate that they own the first result on Google for “Video Recommendation.” (Congratulations Taboola)

We first wrote about Taboola 3 years ago here, a year and a half after Founder and CEO Adam Singolda started the company.

Publishers See The Power in Providing Video Recommendations

The reason Taboola was able to capture that real-estate on the search monster is simple. It’s not because they have great SEO (though it’s not bad either), or a destination site most people know about and visit daily – it’s because the amount of sites that now use Taboola and place a Taboola widget on their homepages, article pages and video pages is massive.

Anywhere from sites such as The NYTimes, USAToday, The Hollywood Reporter, Hearst, IGN, Bloomberg, Reuters and more. Now when publishers place a Taboola snippet on their page, Google bots picks it up and thumbs up Taboola for it.  From Q1 2011 to Q1 2012, Taboola grew it’s number of publisher clients by 1400%.

Growth Spurs New Demand For Video Advertising Inventory

Beyond what it means to a startup like Taboola this is an interesting indication that the market has matured. Video is finally, after 4 years, working. It means that there is finally a real and meaningful demand from premium advertisers to buy video advertising online, and there is little supply for premium publishers to answer that demand. This is a good problem to have, and it’s also a new one.

Video wasn’t “working” 2 years ago and not even last year. But it is working now, with $30-$50 CPMs, and publishers want a whole lot of it. And that’s why it became a good time to convert users to watch videos using personalization techniques as well as spend marketing budget to acquire engaged users from other sites to come watch videos on your site. A space Taboola is also leading, showing paid videos to 120M people month now (vs. 80M 6 months) according to Quantcast.

Taboola is #1 on Google for Video Recommendations, true, but really what it means is that video is working, and it’s time to double down on creating viewership and engaged users. Good luck !