• by Jack Loechner , Staff Writer @mp_research, November 16, 2006

According to an eMarketer summary of an upcoming study release, spending on online video advertising will reach $410 million this year, 82% more than was spent in 2005. By 2010, Internet video advertising will be a $3 billion business, according to eMarketer's latest projections.

The eMarketer Report notes that two factors, in addition to the Google purchase of YouTube, appear evident in driving the 64% annual growth in spending on Internet video advertising:

• The great desire among companies and their agencies for targeted ad messages in a familiar creative format
• The obvious parallels with television, the long-favored mass medium, and the need to replicate that medium's advantages on the Internet

In addition, the high percentage growth is certainly a result of the small base from which online video advertising has started.

It is important, concludes the report, to keep this trend in perspective. Even with all the excitement, online video advertising will account for only 2.6% of this year's $15.9 billion; 11.5% of all online ad spending in 2010, though still represent only 3.3% of TV ad spending in that year, according to eMarketer's projections.

For more information, please go here for notification of the final report release.