• by Joe Mandese  @mp_joemandese, June 12, 2006

For all the hype surrounding the emergence of online video, nearly two thirds of ad executives say it has had no effect on their ad spending plans during the 2006-07 upfront TV advertising negotiations. That's one of the conclusions from a survey of top ad executives fielded by the American Advertising Federation. The findings, part of a survey of the digital media plans of 140 ad execs, were released Sunday during the opening day of the AAF's national conference in San Francisco.

While the majority of executives said online video has had no impact on their TV advertising plans, 23 percent said they planned to spend more on TV networks because of it, while 15 percent said they would actually spend less.

The new video form, however, appears destined to have a more significant impact on online ad spending. 93 percent of the respondents said video and other rich media formats would provide more creative opportunities for advertising online, a development that is likely to help fuel online ad spending.

On average, the ad executives said they expected to spend 20 percent of their total media budget on online media, up form about 15 percent in 2005. By 2010, they expected online's share to grow to 32 percent of all media spending.

Curiously, newer online platforms are projected to get a relatively small percentage of online budgets next year, though so-called "social media" and video would get the top percentage of spending: 7 percent and 5 percent, respectively. Podcasts are projected to get only a 4 percent share of online ad budgets, while blogs and mobile advertising are projected to get a 2 percent share each. Advertising in online video games will command only a 1 percent share.

While search remains hot, it is projected to continue trailing online display advertising next year, but will actually overtake it by 2010. Search is projected to have an 11 percent share of online ad budgets in 2006, but will grow to 23 percent by 2010, while display advertising will grow from 13 percent in 2006 to 18 percent in 2010.

Respondents also said that they are willing to pay a 14 percent premium for behavioral and demographic targeting services for online ads.