Aug 2007 Online Video Advertising: Spending and Audience

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Online Video Advertising: Spending and Audience, August 2007

The Google-DoubleClick, Yahoo!-Right Media, WPP Group-24/7 Real Media and Microsoft-aQuantive deals are all attempts to own the best technology and data-analysis tools for online ad targeting. By serving ads to people based on their online activities, behavioral targeting promises to reach a more engaged audience with fewer ad impressions.

Online video advertising holds great promise. The high engagement factor of video, combined with the Internet's tracking and targeting capabilities, offers a valuable revenue stream for Web publishers and a highly accountable method for brand advertisers to sway the hearts and minds of target audiences.

Next year represents a mass-market benchmark, as more than 50% of the US population 155.2 million people will watch video online. How this audience reacts to online video advertising will ultimately shape the future of the format.

When Piper Jaffray specifically asked US adult Internet users if they were willing to watch advertising before a free online video, the response split nearly equally into three groups: the 30% who were not willing, the 31% who said it depended on the content and the 39% who were willing depending on the length of the ad.

Early research indicates that Internet video ads tend to induce some kind of action among viewers. The most-cited behavior is checking out a company Web site. That was true for 31% of the respondents in a recent study from the Online Publishers Association.

In 2007, US marketers will spend $775 million to reach the online video audience. While that figure will rise to $4.3 billion by 2011, the amount of time spent watching video online at that point will still be more significant than the ad dollars chasing those eyeballs.

To find out more about eMarketer’s Online Video Advertising: Spending and Audience Report, click here.

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