1 Comment

Summary:

While representing only 1.6 percent of total online and television advertising spending, and 4.3 percent of the online ad spend total, the market for video ads over the Internet is growing and is not necessarily taking money away from other media channels, according to a report […]

While representing only 1.6 percent of total online and television advertising spending, and 4.3 percent of the online ad spend total, the market for video ads over the Internet is growing and is not necessarily taking money away from other media channels, according to a report released yesterday by eMarketer.

105459

In the midst of a worldwide recession and an advertising decline — the broadcast upfront was down 20 percent this year — it may sound like great news. But for every dollar spent on TV, search and banner ads, less than 2 cents goes to online video ads.

The good news is that the market grew by 125 percent last year, but it will have to sustain 40 percent growth year over year to achieve the report’s projections of tripling its total share and doubling its online share by 2013, and then still be a bit player in the larger market.

The other bright spot is that for every hour of video viewed, online outlets outpaced television outlets with 17 cents in ad revenue compared with 13 cents. However, the cost of serving all the video that isn’t supported by ads significantly dilutes that 17 cents an hour. And both were down significantly from last year, a trend eMarketer predicts will continue.

Related research

Subscriber Content

Subscriber content comes from Gigaom Research, bridging the gap between breaking news and long-tail research. Visit any of our reports to learn more and subscribe.

You're subscribed! If you like, you can update your settings

Related stories

  1. Who are the ad wizards who came up with this one?

    I would like to know what television dayparts they are including in this comparison, because if you are comparing prime time shows like Lost (even with time shifted viewership) against Lost on ABC.com or Hulu, revenue per viewer hour online is a fraction of linear.

    Share

Comments have been disabled for this post