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Fueling Growth in Online Video Advertising


What's the meaningful business impact of online video adoption on digital marketing investments in 2009? Apparently the growth trend has caught the attention of mainstream marketers.

Marketers in the U.S. will take a closer look at online video in 2009, according to a survey conducted in December 2008 by PermissionTV. More than two-thirds of respondents said they would focus their budgets on online video this year.

More than one-half of respondents also expected to be implementing or extending an online video project in Q2 2009. However, less than one-third said they were doing so currently.

eMarketer estimates that spending on online video advertising will grow to $4.6 billion in 2013 -- representing a more than sevenfold increase from the $587 million spent on the format in 2008.

More than four out of five Internet users will watch online video advertising in 2012, eMarketer projects, up from the two-thirds who did so in 2008.

Online video ads are expected to change the nature of online video inventory as well. As ad-supported video grows, the balance of the inventory will tilt toward longer-form content, according to a Diffusion Group study.

This supports the view that more full-length TV content will be viewed online with ad support. The study projected that in 2013, long-form video will represent 69.4 percent of ad revenues, up from 41.6 percent in 2008. In the same timeframe, the share of short-form video will decline to 28.7 percent from the current 54.8 percent.

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