Offline agencies are beginning to realise that online video advertising could have a similar reach to television, according to JupiterResearch, and as a result this market in the United States is expected to grow from $77 million in 2003 to $657 million by 2009.
Speaking at the Jupiter/ClickZ Advertising Forum Conference yesterday, analyst Nate Elliott said that the propel in spending is attributed to a number of factors including; increased video viewership, which is predicted to grow from 24% in 2004 to 42% by 2009, as well as advertisers’ desire for cross-media integration.
As reported by ClickZ News, the primary propellant will be the offline agencies, said Elliott. He added: “One of the trends that we see driving this industry forward is offline agencies starting to exert more control. This is something we’re seeing from Starcom right now that we really like. Have one group developing the creative and doing the planning and the buying.
| Online Video Advertising Spending |
| |
|
| 2003 |
$77 million |
| 2004 |
$121 million |
| 2005 |
$198 million |
| 2006 |
$282 million |
| 2007 |
$372 million |
| 2008 |
$509 million |
| 2009 |
$657 million |
| Source: JupiterResearch |
Speaking of the expected online video spend surge, Elliott said: “This is really something that’s just starting to get a lot of use and is just starting to get really popular, and we see it as something that’s going to be very valuable for advertisers.”
An important factor in building this market is online and offline units working together said Elliott. Budgets needs to be opened up to include online and cross media planning will make advertisements more effective.
The online video advertising spending forecast is just a small slice of the overall rich and streaming media spend projections which were announced at the conference. JupiterResearch said that it expects the market to nearly quadruple from $1 billion in spending in 2004 to $3.8 billion in 2009.
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