Can Online Video Advertising Really Reach $4.3B by 2011?

Monday, July 16th, 2007 by Andy Beal

Can Online Video Advertising Really Reach $4.3B by 2011?

eMarketer is predicting a huge surge in online video advertising spending over the next four years, with this year’s $775 million growing to $4.3 billion by 2011. While the number sounds impressive, it will account for just 10% of all internet advertising and will be a fraction of the $46.3 billion spent on TV advertising by 2011.

Business Week explains why online video ads will grow so easily.

It’s after 2011 that the floodgates will really open, says eMarketer senior analyst David Hallerman. By then, the distinction between television and Web video will be so blurred that advertisers will begin directing more of their marketing budgets to the online version. “All you have to do is take a few percentages off of a TV advertiser’s typical budget and that is going to be a large amount of money,” says Hallerman.

Sounds simple enough, doesn’t it? Online video ads are cheaper to make, more accountable and so why not just take some money from the traditional TV advertising budget? It may not be that easy. After all, search engine marketing is cheaper to implement, much more accountable, and yet still only accounts for a small fraction of most companies’ total advertising budget.

The key to this huge growth is acknowledged by Hallerman. The lines need to blur between online and offline video quality. We need to get online video watching (and content) in line with TV, otherwise it’s going to be tough to convince marketers to spend four billion dollars for ads that run alongside video of Mentos dropping into a bottle of Coke.

Social Media Monitoring in Just 60-Seconds. Guaranteed!

Similar Stories in: Research, Video | Forward: Email This Post

Share this post

3 comments on “Can Online Video Advertising Really Reach $4.3B by 2011?”

Online Videos: A $4 Billion Dollar Industry? | FathomSEO Search Engine Marketing Blog Says:

July 16th, 2007 at 4:18 pm

[...] Did you enjoy reading this search engine marketing blog article? If so, you may want to subscribe to the FathomSEO RSS feed. Thanks for visiting!Online video advertising to be a $4.3 BILLION dollar business by 2001? That’s what the reports are saying. eMarketer is predicting a huge surge in online video advertising spending over the next four years, with this year’s $775 million growing to $4.3 billion by 2011. While the number sounds impressive, it will account for just 10% of all internet advertising and will be a fraction of the $46.3 billion spent on TV advertising by 2011. [...]
The Lonely Marketer - a discussion for the small business marketing manager » Should I Be Doing Online Video Ads? Says:

July 26th, 2007 at 9:55 pm

[...] I did a quick search to see what other bloggers had to say about this and I found some interesting opinions. Howard Owens questions what “professionally produced” means in a study he reference while Andy Beal questions if online video advertising can really have this type of growth when mediums such as search marketing are easier to implement and are more accountable. In another article, Michael Pick has a great outline of a new online video advertising service from LiveRail. [...]
ödev sitesi Says:

August 12th, 2007 at 9:49 am

I’m not totally sold on the idea of video banner ads. In a sense, they’re like TV commercials, but more intrusive and harder to ignore. That intrusiveness can be seen as either an advantage or a disadvantage, depending on who your target market is, and what sites you’re placing the ads on.

I know that, personally, if I land on a site and a video ad starts playing, the very first thing I do is to turn the ad off (or at least mute it, if there is no “stop” option). If you’re marketing to tech/net savvy people, their reaction will likely be the same.

If you’re advertising to people who aren’t as internet savvy, they might not realize that they can turn off the ad, and will be more likely to pay attention to it (or they might just navigate away from the page).

Marketing Pilgrim