Thursday, November 09, 2006

Online Video to Take TV Money

Video advertisements are now being seen as a suitable alternative to TV and are expected to continue their exponential growth during the coming years.

Online video adverts will haul $410 million this year, up 82 percent from 2005, according to eMarketer. In 2008 revenues will exceed $1 billion, or 6 percent of the total online spend.

The growth is due to advertisers becoming more comfortable with online video in general and as a replacement for TV. According to one estimate, TV ad revenue will drop by 6 percent in 2007.

David Hallerman, eMarketer senior analyst, says agencies like working with a familiar creative format and "have long favored television as their marketing medium, and extending that preference to the Internet is a logical leap."

For example, Dodge is running spots for its Nitro SUV on TV and unique and repurposed shorter spots on MSNBC and its website. The company planned for the web spots up front and shot additional material instead of just reusing TV content.

I also heard from comScore that they also expect a boom in online video and are working on ways to better track performance.

So Google's $1.6 gambit on YouTube may not have been so crazy after all.

Posted By John Gartner at 12:17 PM
Permanent Link: Online Video to Take TV Money | Comments (2)

(2) Comments on Online Video to Take TV Money

No surprise here. The question will be when Youtube starts the video advertising on their videos.

Comments by Paul : Thursday, November 09, 2006 at 03:09 PM

Online video was going to happen eventually, it was just a matter of bandwidth, it will have it's turn, how much, i don't know.

Comments by Graham : Thursday, November 09, 2006 at 05:52 PM

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