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Online Video Ad Spending Growth

Get ready for a stream of ad dollars.

eMarketer predicts online video ad spending in the US will reach $505 million this year and keep climbing through at least 2013. Over the next five years, growth will peak in 2012 at 78.9% above the 2011 spending level—reaching $3.4 billion.

The rapid growth means that advertisers will spend more than 10 times as much on online video in 2013 as they will this year.

If the saying "advertisers follow eyeballs" is still true for one medium, it is online video. More than one-half of the US population now watches online video, and eMarketer predicts there will be 190 million online video viewers in the US in 2012. At that point nearly nine out of 10 Internet users will be watching online video.

"However, even if online video advertisers are following eyeballs, they are far more tentative than the audience itself," said David Hallerman, senior analyst at eMarketer. "Figuring out the best types of video content to attach their ads to is one of the big questions. Is it short-form video or longer pieces? Is it professionally created video, or can user-generated video ever become a safe harbor for large numbers of brand marketers?"

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