Online video advertising is poised to experience noticeable growth this year but spending will still account for only a small proportion of interactive adspend.
Jupiter Research reports that 65% of marketers plan to try online video advertising this year, up from just 38% in 2002. However, investment will remain low with just 25% intending to spend more than $50,000, compared to 10% last year.
There appear to be two main reasons why advertisers are reluctant to embrace streaming advertising. Jupiter found 38% of those surveyed believe the online video audience is too small while another 27% cited high costs.
It is estimated that video advertising will be worth $180 million this year, equivalent to 3% of all online adspend. Progress will be gradual and by 2005, it will account for 6% of all revenues in the sector.
