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Online Video Ad Spending Taking Off

Posted on 11.05.2006

According to a recent eMarketer release, online video advertising spending will reach $410 million this year - 82% more than in 2005. Also, according to eMarketer's projections, online video ad spending will balloon to a $3 billion business by 2010.

This should come as no surprise, considering the much-publicized Google purchase of YouTube. The growth is no doubt also fueled by the increasing trend of consumers turning to the Internet for their television viewing. What will be very interesting to watch is how ads are integrated into Internet video, wildly popular in part to its lack of advertising.

EMarketer warns, however, to keep this spending in perspective. Online video advertising accounts for only 2.6% of total online ad spending this year, and will make up just 3.3% of TV advertising by 2010.

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