Ad revenue for online video will reach $321 million this year, up 75 percent from 2004, according to a forecast by AccuStream iMedia Research, reports iMedia, citing a report issued last week: "Streaming Advertising and Subscription Media: 2003-2006." Accustream expects gross ad billings for both streaming video and radio to reach $504 million, a 47 percent rise. Gross ad billings for streaming radio in 2005 are forecast at $22 million, an 82 percent year-over-year increase.

Meanwhile, ClickZ reports that digital agencies are hunting for video talent as advertisers seek to enhance their online ads and websites with video. The trick for agencies is to find people with both offline video and online media production experience who also have the skills to tell a story.

Mike Griffin, VP of business development at EyeWonder says nearly 80 percent of video ads that the firm sees are made by repurposing television ads. Another 15 percent use existing video content, edited to fit online. Only 5 percent of online video ads are created entirely for the Web. The trend is shifting, as more advertisers begin to realize the power of video ads, he said.

Online video is growing quickly, in line with broadband penetration, and more advertisers are attempting to reach that broader audience by adding video to their online efforts.

Jupiter Research forecasts that online video advertising will hit $657 million in 2009. Rich media tech firm PointRoll recently reported that it has served eight times more video ads in the first half of this year than during all of 2004.