IAB: $345M in Online Video Revenue in First Half of 2008

Advertising market research is already being infiltrated by terms like “dramatically lowered expectations,” and even online video — where growth rates are huge because it’s so new — hasn’t been immune to downgrades. Indeed, eMarketer recently chopped its estimate for 2008 U.S. video ad revenue by more than half, to $505 million from $1.3 billion.

But looking back at the recent past isn’t quite as painful. The Interactive Advertising Bureau said today that U.S. online advertising revenues in the first half of 2008 were up 15.2 percent over the same period in 2007 (PDF). Of $11.5 billion in total online revenue, 3 percent came from digital video advertising. That’s $345 million in video revenue in the first half of 2008, with $173 million in the first quarter and $172 million in the second. Looking back a year, to the first half of 2007, video revenue was only $100 million, or 1 percent of total online revenue for the period.

For the purposes of its reporting, the IAB defines “digital video commercials” as follows:

TV-like advertisements that may appear as in-page video commercials or before, during,
and/or after a variety of content in a player environment including but not limited to, streaming video, animation, gaming, and music video content. This definition includes digital video commercials that appear in live, archived, and downloadable streaming content.

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