Online Advertising - News

Spending on online video advertising will reach $410 million this year, 82% more than was spent in 2005. By 2011, Internet video ads will be a $3 billion business, according to latest projections.

Reports note that two factors, in addition to the Google purchase of YouTube, appear evident in driving the 64% annual growth in spending on Internet video advertising:

• The great desire among companies and their agencies for targeted ad messages in a familiar    creative format

• The obvious parallels with television, the long-favored mass medium, and the need to    replicate that medium's advantages on the Internet

In addition, the high percentage growth is certainly a result of the small base from which online video advertising has started.

It is important, concludes the report, to keep this trend in perspective. Even with all the excitement, online video advertising will account for only 2.6% of this year's $15.9 billion; 11.5% of all online ad spending in 2010, though still represent only 3.3% of TV ad spending in that year, according to projections.