Online video ad spending doesn’t reflect audience size, eMarketer reports
Advertising spending in online video is poised to take off, says a new report from research company eMarketer. But at the same time, eMarketer reports, ad spending is not reflecting the amount of time consumers spend viewing online videos.
Ad spending in online video will reach $775 million this year, eMarketer projects, nearly double in 2008 to $1.35 billion and total $4.3 billion in 2011.
But while ad spending will increase by five and a half times in 2011, nearly two-thirds of the entire U.S. population, and 87% of the Internet population, will be regular viewers of online video by then, eMarketer projects. It defines a regular viewer as someone who downloads or streams a video at least once a month. By comparison, 47% of the entire population and 72% of the Internet population are regular viewers this year, eMarketer says.
“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 eMarketer’s new report “Video Advertising Online: Spending and Audience.” “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.”
Back...
