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.
U.S. Online Video Advertising Spending | |
Year | Dollars in Millions |
2006 | $410 |
2008 | 1,300 |
2010 | 2,900 |
Source: eMarketer, October 2006 |
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:
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.
U.S. Video Ad Spending Online(% of Total Internet, Rich Media and TV ad spending) | |||
Year | Total Internet | Rich Media | Television |
2006 | 2.6% | 28.7 | 0.6 |
2008 | 6.0 | 44.8 | 1.6 |
2010 | 11.5 | 63.9 | 3.3 |
Source: eMarketer, October 2006; Veronis Suhler Stevenson, September 2006 |
For more information, please go here for notification of the final report release.