US online video spending set to increase

US online video spending is predicted to account for 4.3% of total online ad spending and 1.6% of television ad spending this year, according to eMarketer.

By 2013, eMarketer estimates online video spending will account for 11% of online ad spending and 5.5% of the TV ad spend.

It expects to see growth over 40% for four years, dipping to slightly over 30% in 2013.

David Hallerman, eMarketer senior analyst, said: “As the main vehicle for brand marketer ad spending, TV is not losing its place to online video advertising anytime soon.

“In 2009, for example, for every $100 advertisers spend on television, they will spend only $1.60 for video ads. Even by 2013, that number will only reach $5.50.”

Recent figures from the The Pew Research Center’s Internet & American Life project revealed that 62% of US adult internet users have watched online video on a video-sharing website.

Magna has forecast that the US market for online video will grow by 32% this year rising from $531 million in 2008 to $699 million in 2009.