Monday, February 2, 2009

Online Video Ad Spending Cools, Still Popular

FEBRUARY 2, 2009

Decreased growth is still growth.

Although online video ad spending will still grow by a healthy 22.5% in 2009, the growth rate will actually fall from 2008’s level of 36%, according to projections released in January 2009 by AccuStream iMedia Research. The company said growth would rise again in 2010 to 28.2%.

AccuStream said spending reached $2.1 billion in 2008. It also reported that CPMs on premium preroll videos averaged $35 in 2008.

AccuStream’s spending numbers are far higher than most other estimates. For example, eMarketer put online video ad spending at $587 million in 2008. However, AccuStream is highly inclusive and counts all online-video-related infrastructure in its estimates.

eMarketer also forecast online video ad spending growth would dip in 2009, to 44.9%, down from 81% growth in 2008, before rising again in 2010.

Despite the slowing growth predicted for 2009, online video ads are still rising in popularity at a pace that would be welcomed by most other ad media.

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