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BizReport : Research archives : August 19, 2009

Forecast: Online video spend to reach $4 billion by 2013

New research from eMarketer could have more marketers thinking video in the future. According to the new report online video ad spending will quadruple over the next four years, growing from $1 billion in 2009 to just over $4 billion by 2013. Impossible in the current economy? Not so, according to the report.

by Kristina Knight

Although marketers are still holding tight to the purse strings, no matter what the ad format, those purse strings are loosening, especially when it comes to measureable ads. The online space is much more measureable than television, so more marketers are considering the medium. Still, television is the king of video and likely will be for a long time to come.

Marketers are spending about 65% more on television advertising than online video at this point, but when it comes to content viewed, online advertisers are spending more. How? Television advertisers are spending about $0.13 per hour viewed while online video advertisers spend about $0.17 per hour viewed. Why? Because television viewers are 'leaned back' and watching the content while online viewers are 'leaned forward' and ready to click something else as the mood takes them.

For online video to change, viewers must change how they watch online content, not a simple thing to do.

"Since the time people spend watching video or TV content produces potential engagement points--moments to reach them with the marketer's message--this is a suitable method for gauging the strength of these two parallel ad spending formats," said David Hallerman, author of the report, "Digital Video Advertising: Where's the Money?".

Tags: eMarketer, online video, television advertising, video advertising

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