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.