Online Video Ad Spending Still Growing … Slower

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According to the expectations of AccuStream iMedia Research, online video ad spending will grow 22.5 percent in 2009.

While this figure is still growth, it reflects a slowdown from the 36.0 percent growth in 2008. AccuStream expects growth to rise in 2010 to 28.2 percent.

The company noted that online video ad spending was $2.1 billion in 2008, and that CPMs on premium pre-roll videos averaged $35.

In contrast, eMarketer figured that just $587 million was spent on online video ads in 2008, attributing the vast difference to the fact that “AccuStream is highly inclusive and counts all online-video-related infrastructure in its estimates.”

eMarketer expects online video ad spending to grow 44 percent to $850 million in 2009.

Regardless of this slowdown, online video remains an attractive and relatively fresh medium for advertisers. There is much room for growth, not just in terms of ad spending but also with regards to the way ads are run with videos.

Sources:

http://www.emarketer.com/Article.aspx?id=1006896

http://www.newsfactor.com/news/Online-Video-Ads–A-Bag-of-Tricks/story.xhtml?story_id=0020004SQGO4

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