Market analysis firm Research and Markets projects that spending on Internet video advertising will increase from $225 million in 2005 to $640 million in 2007, a nearly threefold increase, with spending ramping up to $1.5 billion by the end of the decade.
However, the upward trend in ad spending for online video isn’t a harbinger for the end of television advertising: far from it. Instead, online video advertising will increasingly feature the same content as traditional television advertising and increasingly push aside forms of advertising developed specifically for the Internet. By 2009, the report projects, online video advertising will represent 42.4 percent of online advertising spending, compared to just 17.9 percent in 2005.
Increases in online video advertising spending may also be enhanced by so-called “pre-roll” advertising as online video download and streaming services ramp up: pre-roll advertisements are video ads placed within another video stream, either as separate segments (like traditional television commercials) or as bugs or crawls appearing alongside the primary content. Static (or “in-page”) Internet video advertisements are typically embedded alongside other forms of online content (such as text, games, and Web pages) as banners or separate objects.
