In-stream advertising targets the readers or followers of content publishers within their stream of updates. Over time, it has evolved from an in-video stream online into a real-time feed within social networks; this report examines the ecosystem surrounding the latter.

For this research, we provide an overview of the in-stream advertising ecosystem and its players: content publishers; advertisers; stream providers such as Facebook, MySpace and Twitter; analytics providers; and consumers themselves. Ad networks, meanwhile, will continue to build demographics and tools to differentiate their offerings; this is illustrated by the sheer number of new players and startups, such as Ad.ly and RiotWise, now entering the space.

Three factors will impact future changes in this area of advertising: direct publisher interest, consumer and industry reactions as stream providers and ad networks test products, and, finally, the shifting nature of the format itself.

As with any new market, this one is not without its challenges and complications as standards constantly evolve and companies grapple with ways of monetizing their offerings. Last, advertisers will continue striving to better understand their audiences throughout the months ahead.