Video Ad Spend: Building to Steep Growth

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.