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Online Video Ad Outlook Still Optimistic

Increased viewership, tolerance for ads. The online video advertising predictions keep coming.

Video ad company LiveRail predicts that online video ad spending will near $1.4 billion in 2010, up from $619 million in 2008.

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The company said that online video still represents only 2.4% of all online ad spending.

eMarketer's own analysis, which considers predictions by multiple firms, puts online ad spending in 2010 at $1.15 billion, up from $505 billion in 2008. Similarly, online video represents only 2% of total online ad spending as of 2008, but will approach 10% in 2013.

Most online video ad spending predictions released in the past year are at least somewhat optimistic, and it is easy to see why. More than one-half of US consumers currently watch online video, and by 2012 nearly nine out of 10 Internet users will do so.

Online households surveyed by The Conference Board and TNS in Q3 2008 said they watched TV online because it was convenient, it allowed them to watch on their own schedule and (of course) it allowed them to skip commercials.

Read more - eMarketer

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