Online Video Ad Market Predicted to Quadruple by 2013

More people are watching online video which means that the online video ad market is set to grow. eMarketer analysts predict the current market value for this sector will quadruple to $4 billion by 2013.  But disparities remain between the  rates marketers will pay for online video versus television ads. 999218_gamers_room

According to eMarketer, the ad spending per hour of TV viewed was $.14 in 2008 while the ad spending per hour of online video viewed was $0.21. Analysts expect these figures to approach parity in 2010 when spending per hour of TV will cost about $0.12 in 2010 and online video will cost about $0.13.

Analysts point out that online video viewing currently takes the ‘lean-​forward’ form where the viewer has a finger hovering over the mouse and is ready to jump to another viewer or application quickly. By contrast, the “lean-​back”  TV viewing mode – think couch potato – ensures a more relaxed and ad-​receptive audience. As video viewing behavior on the part of consumers converge, the ad dollars that are currently trickling into the online video market will become a steady stream.

[Source: The Future of Internet Video, emarketer​.com, 8.12.09 release] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.