Eyeballing the Future of Web Video

As viewership of Online video content increases, ads are coming along for the ride.

According to eMarketer’s “Online Video Advertising: Promises and Challenges” report, U.S. online video ad spending will reach $640 million by 2007 and $1 billion by 2008, up from $225 million in 2005. By the end of the decade, advertisers — which currently include Burger King, Volkswagen, Jeep, and Unilever — will be allotting upward of $1.5 billion to online video ads. “Critical mass of video content offerings is rapidly approaching, and that’s what’s fueling the growth,” says David Hallerman, eMarketer senior analyst. Expanding home broadband use is also a major contributing factor.


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