As a result of the economic downturn, online video won’t grow as fast as previously forecast, according to a recent report from Magna, a unit of Interpublic Group of Companies Inc.’s Mediabrands division.
However, online video is still forecast to grow a healthy 32% from $531 million in 2008 to $699 million in 2009, according to Magna.
Last summer, Magna forecast online video to grow 45% this year to $805 million this year.
The organization said in its most recent report that it expects traditional television content and suppliers to account for the bulk of online-video growth for the next several years.
For one thing, as marketing budgets get slashed, advertisers are looking for ways to reach consumers in a more targeted, cost effect manner, Magna’s report said.
Also, the increased penetration of broadband at home led to a 50% rise in time spent with professionally produced online video in 2007 and a 24% increase in 2008, according to the report.
Magna forecasts online video to generate slightly more than $1 billion in net ad revenue by 2011.
Network
