The growth of online video advertising poses less of a threat to traditional TV advertisers than originally thought, according to a new report by online analyst eMarketer.
According to David Hallerman, senior Analyst at eMarketer and author of the company’s Online Video Advertising report, internet video represents a “common ground for the two media” rather than a “field of battle.”
The analyst estimates that adspend on internet video will nearly triple in 2007, rising to $640 million from the current figure of £225 million, while a total of $1.5 billion will be spent on the medium by the end of the decade.
“Television and the internet will find ways to complement each other,” Hallerman explained. “Winner-take-all is not the name of the game. In real-world terms, what it means is marketing campaigns can extend TV’s reach to the online space, enticing the target audience to spend more time with a particular brand.”
Hallerman explained that internet video can be easily transferred from traditional TV spots, is an excellent way to merge existing media together and can provide detailed tracking data.
“More than any other advertising format,” the analyst explained, “internet video has the potential to blend hot marketing elements together – branded entertainment, paid search, viral marketing, consumer generated media, behavioural targeting, website brand marketing and online gaming.”
eMarketer’s findings underline those of internet specialist, comScore, which last month reported growing demand for true video capabilities from the internet, as over 94 million American consumers, or 56% of the domestic Internet population, claimed to watch streaming video online (see Streaming Video Offers Increased Ad Opportunity).
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