Video may have killed the radio star, but it’s working wonders for the online ad business. According to eMarketer, video is showing the highest spending growth numbers of any category.
Last year video went up 42.1% and it’s expected to keep in the double-digits for the next few years.
More spending, means claiming a larger share of the online ad pie. For video, it’s currently at 7.9%, just barely sneaking past Classifieds and Directories. The share is expected to rise to 15% by 2016, keeping it solidly in third place.
Add in search and banners and these three ads account for 80% of all ads sold. Search, accounting for almost half of all online ads by themselves.
The rise in video ad spending is certainly being spurred on by the rise in video consumption. Recent numbers from comScore show that 182 million U.S. Internet users watched an average of 23.2 hours of video content per viewer in December.
Video is the new TV but it’s cheaper and easier to put ads on a hit YouTube series than on a hit TV show.
If you need more proof that online video ads are on the rise, answer this. When was the last time you watched a video that didn’t have either a banner or a pre-roll ad? I can’t think of one.