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BizReport : Advertising archives : February 20, 2007

Video ads all hype and no action

The rise of internet video and associated advertising opportunities has been promoted as the next big thing for online advertisers, but it’s yet to make its mark.

by Helen Leggatt

Online video advertising accounts for just 5 percent of the $20 billion ad market, yet the amount of column inches it’s been given lately would appear to paint a different picture. However, take up is slow and revenues have yet to make headlines.

"A lot of learning is starting to take place, and a lot of trials are taking place," said Terry Semel, CEO of Yahoo. "I see it ultimately as something that becomes very significant, and it'll get there, but not quite yet."

Lack of relevant material is quoted is one stumbling block, along with audience fragmentation and the lack of ad models and measurement, reports Advertising Age.

It is estimated that by 2010 only 10 percent of TV budgets will be spent on streaming video. Until audiences grow and marketers can justify their expenditure with solid measurement tools this low level of budget allocation may continue.

Tags: budgets, online video advertising

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