Online video advertising appear for beneath (but still strong) growth

Online video advertising isn’t recession-proof from growth, according to David Hallerman, Senior Analyst for eMarketer and columnist of their afresh appear report, Video advertising Online: Spending and Pricing. But while there’s appreciably beneath advance for video advertising this year than originally advancing (Down from eMarketer’s endure year’s appraisal for 2008 of $1.35 billion to $505 million), Hallerman says in his account with ReelSEO’s Grant Crowell that the admiration for its advance in the bazaar is still actual strong.

Even with eMarketer’s adapted forecasts, online video advertising’s spending advance is accepted to appearance a year-over-year spending advance of amid about 50%-80%.

Because online video advertising comes from a abundant abate abject compared to abundant beyond business channels such as television, “it is still traveling to still accept the better advance by comparison.” Say Hallerman.

Of course, its important to accede absolute ad spending to absolutely get a able abstraction of area online video advertising stands. For 2008, “just 1% of U.S. television advertising would be $700 million. All of online video advertising is estimated at alone bisected a billion dollars.” Says Hallerman. Compared to television ad budgets, “online video advertising shares are about nothing.”

Hallerman’s address says that over the next 5 years, video ad spending assets will far beat those of the added seven online advertising formats (in the afterward bottomward order): sponsorships, search, advance generation, classifieds, affluent media, e-mail, and affectation ads. However, in agreement of absolute ad spending, video will still accord beneath than 10% of the absolute Internet ad universe, aisle abaft (in ascendance order): online classifieds, affectation and search. (And, beneath than any one of paid search, changeless affectation ads, or classified ads.)

Most advertisers still experimenting with video ads

Hallerman aswell says that there are now hard-and-true business strategies for advertisers with video, and that its still actual abundant of an beginning time for a lot of of them to amount out how they can yield advantage of the video space.

“A lot of advertisers who wish to do video online are addition out area the best placements are, area the best ad formats are. For example, do they do a pre-roll or mid-roll? Are they traveling to be authoritative a new artistic for the Internet, or are they just traveling to repurpose what they’re already assuming on television? And amount out what sites are best? It’s still actual abundant of an beginning time. I wouldn’t alarm that either good-or-bad, just still actual abundant addition out how to play this game.”

Hallerman aswell says that viral video, which can accept the better amounts of eyeballs, can be ambiguous for video advertising.

“The admonition is that a lot of viral video is short, and abbreviate video doesn’t absolutely abutment video advertising.” He says. “Also, a lot of viral video can be user created, and those are the array of video that a lot of advertisers do not wish to put ads against. If the video agreeable is in itself an ad, it would accept to be short, professionally created, video with ads embedded.”

The claiming of viral video and video advertising

“A absolute archetype is Saturday Night Live’s videos of Tina Fey accomplishing Sarah Palin, which is getting broadcast on a amount of accepted sites. But even those getting abbreviate snips, [NBC] did not bury ads in. It goes aback to addition out what works. The absence of ads there is an adumbration of the media companies are still addition out how to play the game.”

And as for viral video for baby businesses as abeyant ad revenue, Hallerman is skeptical. “The assembly costs are low abundant now that you can bandy them out adjoin the bank and a few will stick, but a lot of of them won’t.”