Online Video Advertising to Peak in 2012 Predicts eMarketer Report

According to a new report from eMarketer entitled, “Video Advertising Online: Spending and Pricing,” online video advertising will peak at 78.9% in 2012 — when “both traditional and alternative media companies will be distributing far more professional-quality video content online, and when the national elections and the summer Olympics will contribute far more to video ad spending than they will in 2008.”

That doesn’t mean that growth has been anemic this year. According to eMarketer, this year’s 55.9% increase in online video ad spending is a key indication that the channel is at least gaining speed — accompanied by parallel growth in the kind of trusted video content, such as sports, to support it.

David Hallerman, senior analyst at eMarketer and author of the new report, says, “Next year, there will be slightly slower growth, due to the still-struggling economy and the fact that advertisers are working out the best ways to do online video ads.”

He adds, “Marketers want video advertising for its far-greater branding power than other online formats.” Meanwhile, “Publishers want video advertising for its far-greater revenues — or at least higher CPMs—than other online ad formats.”

Stay tuned to see what happens next.

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