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Ad Spending to Follow Broadband Growth

Internet video spot buying is set to more than double by 2007, spurred by increasing numbers of homes with broadband Internet connections and an improved selection of programming from big-name media companies, according to an eMarketer report.

eMarketer estimates the online video ad market in 2005 will generate $225 million. It expects spending will rise to $640 million in 2007 and $1.5 billion in 2009. Broadband penetration is driving the market, the report said, with 42 million U.S. homes going online via high-speed connections, a 23 percent increase from last year. In 2007, eMarketer forecasts 60.4 million households will have broadband.

While half of Web-connected U.S. homes now have broadband connections, eMarketer expects half of all households will have it by 2008.

AOL, Yahoo, Viacom and other media companies have increased the amount of video content available online this year. This expanded choice in programming, combined with high-speed connections that make viewing it possible, has resulted in increased viewership, according to ComScore Networks. It tracked streaming video penetration rising from 55 percent of Internet users in March to more than 60 percent in August.

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