Online video ad spending will still grow this year, though just at a slower pace than previously predicted. According to a new report from Interpublic Group’s Magna, advertisers are expected to spend $699 million on online video ads in the U.S. in 2009, up 32 percent over the $531 million spent on the format last year.
At first glance, that seems like pretty awesome growth…until you realize those numbers were revised downward from last summer’s projections that the online video ad spend would grow 45 percent to hit $805 million in 2009. The good news though: Magna forecasts that online video ad spending will pass $1 billion by 2011.
Online video ad spend is pegged to grow faster than other “emerging media,” and will continue to attract marketers because of its ability to target audiences better than traditional media, said Brian Wieser, Magna’s SVP, global director of forecasting. The increase in premium content alongside greater broadband penetration “led to a 24% increase in time with professionally produced online video during 2008,” according to Weiser’s report.
There may be more monetizable video content online now, but in terms of sheer volume, oldteevee still dominates. Using Nielsen data, Wieser said that in the U.S., people spent 490 billion person-hours with oldteevee, 244 times the consumption of all premium video content online last year. Even if consumption of premium video content continued to grow at that same clip through 2012, TV consumption would still be 98 times greater than that of professional video content.