eMarketer Confirms Web Video Advertising Will Be Hot...In Case You Hadn't Heard
Yesterday web research firm eMarketer released its forecast for online video advertising and - surprise - the numbers get big fast. eMarketer is projecting a 40% annual growth rate, from roughly $700M in 2007 to more than $4B in 2011.
Combine this forecast with another data set released on Wednesday, from the Pew Internet & American Life Project, which says that more than 70% of consumers who have broadband connections watch and download video online.
Just as in the "traditional" video world (television, movie theatres, etc.), some portion of video consumed via IP connections will be paid for - and it will likely be the same kinds of things that are paid for today (live sporting events, premium movies, etc.). However, the majority of "financing" for consumer's habits will come from advertising. Online video advertising is in its infancy, but the early returns are good - much higher click through rates than for traditional online advertising.
Net/net - a) people are watching a lot of video online + b) ads are going to be the primary source of funding for video consumption = c) online video advertising is expected to spike. There - I saved you from having to read the whole report.
