[PROMO Xtra] Marketers looking for a new way to tout their products are turning more to online video ads. The tactic, one of the fastest growing online ad segments, is projected to reach $410 million, a new report shows.

While spending on online video ads is on the rise, video ad spending will represent just 4.2% of entire online ad spending in the U.S., EMarketer said. Despite the small percentage, the tactic is growing legs. By 2010, online video ad spending will become a nearly $3 billion business, the company said.

“At some time early in 2010, one in $10 devoted to Internet advertising will go for video placements,” David Hallerman, senior analyst for EMarketer’s, said in a statement.

EMarketer released its findings at the Ad:Tech New York conference, which runs through Wednesday at the New York.

Marketers looking for a new way to tout their products are turning more to online video ads. The tactic, one of the fastest growing online ad segments, is projected to reach $410 million, a new report shows.

The love of video, made popular by sites like Google and YouTube, will help fuel the growth, with video ad spending projected to soar 89% to $775 million in 2007, according to an eMarketer report, Internet Video: Advertising Experiments & Exploding Content.

While spending on online video ads is on the rise, video ad spending will represent just 4.2% of entire online ad spending in the U.S., eMarketer said. Despite the small percentage, the tactic is growing legs. By 2010, online video ad spending will become a nearly $3 billion business, the company said.

“At some time early in 2010, one in $10 devoted to Internet advertising will go for video placements,” David Hallerman, senior analyst for eMarketer’s, said in a statement. Hallerman authored eMarketer’s report.

EMarketer released its findings at the Ad:Tech New York conference, which runs through Wednesday at the New York.

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