• by Jack Loechner , Staff Writer @mp_research, October 8, 2008

According to eMarketer's recent prognosis for online video advertising, the market will take until 2010 to surpass the $1-billion mark, while beyond 2010 huge additional sums will go to online video advertising each succeeding year.

The report concludes that more trusted video content to sustain advertising, and more large advertisers seeing enough scale to enter this market in a big way, will support that growth.

While only 2% of total Internet ad spending will go to video in 2008, that share will be nearly five times higher by the end of 2013.

Further, says the report, as total Internet ad spending approaches total television ad levels in 2013, it will become commonplace for media buyers looking to both

online and TV for most campaigns, even in the upfront market.

US Online Video Advertising Spending
Year	Online Ad Spending (million $)
2007	$324
2008	505
2009	750
2010	1,150
2011	1,900
2012	3,400
2013	5,800
Source: eMarketer, August 2008

 

US Online Video Advertising Spending ( Percent of TV and Total Online Advertising Spending)
Year	% of TV Spend	% of Internet Spend
2007	0.5%	1.5%
2008	0.7	2.0
2009	1.1	2.6
2010	1.6	3.4
2011	2.6	4.7
2012	4.5	6.8
2013	7.6	9.8
Source: Brenstein Research, May 2008; eMarketer, August 2008

EMarketer estimates that by 2012 four out of five Internet users will view video ads, projected to 183.3 million viewers in 2013.

US Online Video Ad Viewer Penetration (% Total Internet Users)
Year	% Internet Users
2007	59.2%
2008	66.8
2009	72.0
2010	75.1
2011	77.7
2012	80.6
Source: eMarketer, August 2008

NB: Online video advertising viewer is defined as an individual who sees any form or video advertising (in-stream, in-banner, in-text) at least once a month.

For more information from eMarketer about the study, please visit here.