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EMarketer predicts online video ad spending to increase 89% next year

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New York—As interest in online video surges, spurred by deals such as Google’s acquisition of YouTube, video ad spending will increase 89% in 2007 to $775 million, according to an eMarketer report released Monday.

Despite that heady growth, video will represent only 4.2% of all online advertising in the U.S. next year, eMarketer predicted. Video ad spending is forecast to increase 82.2% this year, to $410 million.

EMarketer also predicted video ad spending online will be a $2.9 billion business by 2010.

“At some time early in 2010, one in 10 dollars devoted to Internet advertising will go for video placements,” said David Hallerman, senior analyst at eMarketer and author of the report, in a statement.

—Carol Krol

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