Online video ads growing, but big challenges remain, says eMarketer

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New York—U.S. online video advertising spending will grow 74% to $1.4 billion this year, compared with 2007, according to eMarketer. By 2011, that number will grow to a projected $4.3 billion, representing 10% of total advertising spending.

EMarketer CEO Geoff Ramsey presented the information Tuesday at the company’s Online Video Ads: The Facts, the Strategies and Trends breakfast event.

“Seventy-nine percent of adult Internet users are not willing to pay [for video content online], Ramsey said. “The trend is definitely toward ad supported video.”

Ramsey said roadblocks remain that temper the growth of online video. Those challenges include the quality of content; the lack of measurement standards; lack of scale versus television; and the lack of ability to search.

“Most people are discovering video in a random way,” Ramsey said. “Search is way behind.”

—Carol Krol

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