Video advertising still growing, but at slower pace

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New York—Spending on online video advertising is forecast to grow 32% this year, fueled by increasing availability of broadband Internet connections and more premium video content, according to a unit of Interpublic Group of Cos.

Magna, a unit of Interpublic’s Mediabrands division, forecast that video ad spending this year will hit $699 million, up from the $531 million spent in 2008. However, this is a less robust prediction than Magna’s earlier forecast; last summer, it said online video budgets would jump 45% in 2009, to $805 million.

Magna said the current video ad growth would be monopolized by such outlets as Walt Disney Co.’s ESPN, Time Warner’s CNN, and Hulu, a joint project of NBC Universal and News Corp. that specialize in premium content rather than the user-generated videos that dominate Google’s YouTube.

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