• by Jack Loechner , Staff Writer, September 16, 2004

Video Advertising to Quadruple Online in Five Years

EMarketer reported that at the recent Jupiter/ClickZ Advertising Forum Conference, Jupiter Research noted that overall rich and streaming media spending, including video, would nearly quadruple from $1 billion this year to $3.8 billion in 2009. After reaching $77 million last year, online video advertising is projected to hit $657 million in 2009.

eMarketer's upcoming report, Ad Spending in the US, corraborates rich advertising spending.

US Online Ad Spending by Format (million $)

	2000	2002	2004	2006
Paid search	$109	927	3,595	5,670
Rich media	161	301	956	2,160
Classified	601	902	1,456	2,025
Display	3,783	1,764	1,456	1,553
Sponsorships	2,294	1,093	865	1,283
Email	220	240	273	270
Interstitials	302	240	182	203
Slotting fees	268	481	228	203
Referrals	347	60	91	135
Total (billion $)	8.1	6.0	9.1	13.5

Source: eMarketer, July 2004

Jupiter Research attributed the growth in online video spending to advertisers' desire for cross-media integration. The cohesion between the online and offline units is an important factor in building the market.

Online Video Ad Spending in US (million $)

2003	$77
2004	121
2005	198
2006	282
2007	372
2008	509
2009	657

Source: JupiterResearch, 2004; ClickZ, July 2004

As broadband narrows the gap between the Internet and television, cross-media integration will not only become increasingly important to advertisers, it will be easier than ever to achieve, says the report.