Growth in Online Video Ads will Accelerate TV Change

This from B2B Magazine…”Research firm eMarketer said Monday that it has revised its forecast for U.S. Internet ad spending upward to 10.8% growth this year compared with 2009″.

“EMarketer said it anticipates that search spending will increase 15.7% this year, while banner ad spending will jump 8.2% and video spending will increase 48.1%.”

This last fact is the most interesting. The huge growth in advertising video on the web is finally upon us, driven almost certainly by two factors:

1/ Video is now regularly consumed on web devices, driven by the You Tube generation and the fact that bandwidths and delivery now allow us to see decent quality content in a satisfactory manner (less of the “buffering” syndrome). Advertisers are more confident their ads will be seen as intended.

2/ Targeting and accountablity is offered at a much higher degree through online media than traditional TV where video based ad content has traditionally been delivered.

What impact will this have? Firstly more advertisers can now consider TV ads without having to have a TV budget. It’s become much more affordable as a media option and will indeed grow as a result. Already this year we have many more instances of clients creating video content for their sites with versions created for running as video ads.

Secondly the shift will drive change within the TV industry. They will have to respond by offering more metrics and targeting capabilities. They have the potential to out perform the web. Cable companies know a lot about their subscribers – what they watch, who they are, where they live, etc and can combine this powerful information to offer individualized targeting every bit as robust as the web. They will soon be able to offer much greater penetration of intereactive services too, allowing the audience to engage directly and most importantly measurably with different ad campaigns. This shift in budget will only accelerate that developmental process.

Expect to see big changes in TV land within the next 12-24 months.

Dick Reed
Just Media, Inc.

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