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Online Video Ad Spend to Surge 89 Percent in 2007

Spending on online video advertising is expected to increase 89 percent in 2007 compared with 2006, according to a new eMarketer report, "Internet Video: Advertising Experiments & Exploding Content."

Video ad spend in the U.S. will reach $775 million in 2007, growing 89 percent from $410 million in 2006, eMarketer predicts. Still, online video ad spend will constitute just 4.2 percent of total online ad spending in the U.S. However, that proportion is expected to reach 11.5 percent in 2010, becoming a $2.9 billion business.

"At some time early in 2010, one in 10 dollars devoted to internet advertising will go for video placements," said David Hallerman, eMarketer's senior analyst and author of the report.

The high year-over-year growth rates of online video ad spend are expected to continue over the next several years: 67.7 percent in 2008, 53.8 percent in 2009 and 45.0 percent in 2010.

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