Online Video Ad Spending to Surge 89% in 2007 - eMarketer
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Online Video Ad Spending to Surge 89% in 2007

New eMarketer report projects spend to hit $775 million next year

November 6, 2006

NEW YORK, NY (November 6, 2006)–Spending by marketers, in love with the promise of video online, will be responsible for an 89% higher growth rate in 2007 over 2006, according to a new eMarketer report, Internet Video: Advertising Experiments & Exploding Content.

US Online Video Advertising Spending Growth and Share, 2006-2010 (% increase vs. prior year and % of total online ad spending)

While passion for video is intense and building, thanks to deals like the Google-YouTube acquisition, it's still important to keep the growth in perspective. While video ad spend is predicted to reach $775 million from $410 million in 2006, it will still only represent 4.2% of the entire online ad total in the US. Compared with TV, spending for online video ads will represent only 0.6% of TV ad budgets this year.

Video will remain a small portion of the overall ad spend, but will grow as a percentage of online spend. By 2010 video ad spend online will become an almost $3 billion business. "At some time early in 2010, one in 10 dollars devoted to Internet advertising will go for video placements," said David Hallerman, eMarketer's senior analyst and author of the report.

US Online Video Advertising Spending, 2001-2010 (millions)

To receive a copy of the report, or arrange an interview with Mr. Hallerman, call eMarketer's media contact listed below.

Media Contact:

Kris Oser
Director of Strategic Communications, eMarketer
Tel.: 212-763-6033

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