NEW YORK, NY (July 25, 2007)–Online video advertising holds great promise. The high engagement factor of video, combined with the Internet's tracking and targeting capabilities, offers a valuable revenue stream for Web publishers and a highly accountable method for brand advertisers to sway the hearts and minds of target audiences.
But several factors are preventing the ad spend from rivaling the audience size, according to eMarketer's report, "Video Advertising Online: Spending and Audience."
Next year represents a mass-market benchmark, as more than 50% of the US population - 155.2 million people - will watch video online. How this audience reacts to online video advertising will ultimately shape the format.
2007 will show the greatest year-over-year growth for online video ad spending, rising 89% to $775 million. But more significantly, the growth rate will remain near or above 40% through 2011, when video ad spending will reach $4.3 billion.
Even by 2011, the amount of time spent watching video online will be more significant than the ad dollars chasing those eyeballs.
"As marketers and Web publishers look for ways to expand video's place in the online advertising universe, two key concerns will keep growth below expectations," says David Hallerman, senior analyst and author of the report. "One is the uncertainty about what the audience will accept, with questions about where in the content the ad will run and how long it will run for. The other is the difficulty gathering together enough video ad inventory, with questions about ad placement and how to monetize the billions of user-generated video streams."
In the report:
- What factors are holding online video back?
- What factors will boost online video advertising spending?
- What elements attract the fussy online audience?
- What types of content do people watch the most?
- How long an ad will viewers tolerate?
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