Online Video Growth Continues - eMarketer
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Online Video Growth Continues

Is all of it monetizable?

January 15, 2009

As more data about 2008 Internet usage in the US is released, online video increasingly looks like one of the year’s big winners. US Internet users viewed 12.7 billion online videos during November 2008 alone, up more than one-third over November 2007, according to data released in January 2009 by comScore Video Metrix.

comScore said more than 146 million US Internet users watched an average of 87 videos per viewer in November 2008—that’s 77% of the total US Internet audience.

eMarketer also puts online video viewers at more than three-quarters of US Internet users, and estimates that percentage will rise to 88% by 2012.

US Online Video Viewers* and Online Video Advertising Viewers**, 2007-2012 (millions and % of Internet users)

For marketers, this growth raises the question of how much online video can be monetized.

“Although many consumers are loath to sit through ads when watching online video, they seem even less willing to pay directly for content,” said David Hallerman, senior analyst at eMarketer.

“As a result, content owners and publishers are focusing on ad-funded models. Except for movies, some premium TV fare and select sports content—which remain attached to transactional models—most TV-oriented programming has migrated to advertising-based formats,” Mr. Hallerman continued.

eMarketer estimates online video ad spending will reach $4.6 billion in 2013, up from $587 million in 2008.

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