• eMarketer, Wednesday, November 8, 2006 11:30 AM

In a recent poll, the American Association of Advertising Agencies said overwhelmingly that online video would show the greatest growth among new media in 2006. Some 50% of the group's ad agency reps said online video would show the most growth--followed by podcasting, with 30%, and blogs, the remaining 20%.

Stats from eMarketer back those claims: According to the research aggregator, spending on online video will reach $410 million this year--an 82% gain over last year's $225 million. In two years, eMarketer says spending should top $1 billion--and by 2010, as bandwidth becomes cheaper and content delivery speeds are even faster, Internet video advertising will be a nearly $3 billion business.

In a new eMarketer report, analyst David Hallerman points out that this still represents a small percentage of overall online spending. This year's $410 million contributes just 2.6 percent to the $16 billion total. Although the vast majority of dollars go to the biggest players, YouTube and other viral providers should increase their share of online spending 10%.

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