Video Ads to Grow 27 Percent

Revenue from streaming ads online will grow well, but not spectacularly during the next few years, according to a new forecast from JupiterResearch (per MediaLife). Video online advertising will grow 27 percent between now and 2011, well ahead of the overall Internet ad growth of 11 percent per year.

Ad growth rate will not track on par with the explosion of video content because unlike text content which supports multiple banner ads or text ads per page, consumers will probably only sit through one advertisement per multiple videos streamed. While publishers will charge much higher CPMs, there is less of a base to draw from.

Perhaps video ads will incorporate a hybrid CPA approach, where publishers get additional revenue when consumers interact with the ads. This could increase the revenue pool while limiting the number of ads streamed, which suck up bandwidth.