If eMarketer’s original estimate of $1.3 billion for video ad spending in 2008 appears to have been off the mark, the question is more a change of methodology than of perspective. That is, the basis has changed, but eMarketer’s prognosis for online video advertising has not.
It now appears that the market will take until 2010 to surpass the $1-billion mark. Beyond 2010, huge additional sums will go to online video advertising each succeeding year. Two essential factors will support that growth: more trusted video content to sustain advertising and more large advertisers (brand marketers, mainly) seeing enough scale to enter this market in a big way.
While only 2% of total Internet ad spending will go to video in 2008, that share will be nearly five times higher by the end of 2013.
Further, as total Internet ad spending approaches total television ad levels in 2013, it will become commonplace for TV network ad sales to be a two-way play, with media buyers looking to both online and TV for most campaigns, even in the upfront market.