• October 6, 2008

Despite continued growth, online video ad spending will remain in the shadows of the $70 billion TV video ad market. Research firm eMarketer estimates that online video will bring in $505 million this year, rising to $3 billion by 2012, and $5.8 billion by 2013.

EMarketer Senior Analyst David Hallerman says new models for online video advertising through widgets, or product placement and sponsorships, will increase the use of ads streaming in videos. The greatest uptick for U.S. video ad spending will come from large brand marketers placing TV-like commercials--mostly ads that run in the beginning or middle of the video, alongside professional content from large media companies.

The estimated 154.2 million online video viewers this year should reach 190 million in 2012, which represents about 93% of broadband users. Hallerman says a small number of the population will not have an interest in online video.--Laurie Sullivan