A New York research firm has upped its estimate of the amount that will be spent on streaming ads over the internet in 2007. According to eMarketer, that figure will now hit $650 million, up from an earlier 2007 forecast of $640 million published last November.
By 2009, the research firm says, $1.7 billion will be spent annually on Web video advertising, a $200 million increase from its earlier estimate.
And by 2010, video ads will make up 8% of all Internet ad spending, compared to 2.3% today, according to eMarketer forecasts.
The company said the “media frenzy” over Web video and the growth in traffic of video-sharing site YouTube led it to revise its estimates upward. That attention to video and a growing focus on Internet marketing by entertainment companies will lead to innovative Web ad opportunities, eMarketer said in a release.
“As more TV networks make their content available on the Web, deep-pocketed traditional marketers will better see online video as a necessary piece of their campaigns,” eMarketer senior analyst David Hallerman said in a statement.
Last month, YouTube launched a program to sell video ads on its homepage and on pages specially generated for advertising customers. The ads, which have already been sold to Warner Bros. Records and Fox Broadcasting, will be sold on the basis of page impressions rather than clickthroughs.
YouTube has also announced plans to roll out participatory video ads, which users can choose to play and to which they can add ratings and comments and link their own web pages.
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