Web Video on the Rise

NEW YORK In a reflection of the increased demand for Web video ads, eMarketer has revised its forecast for the segment.

The New York research firm now expects $650 million worth of streaming ads in 2007, up from the $640 million forecast last November. The researcher believes $1.7 billion will be spent on Web video placements by 2009, $200 million more than it originally projected.

EMarketer said the “media frenzy” over Web video, highlighted by the runaway success of YouTube, would lead to increased opportunities for streaming video ads. Most Web video ads on high-traffic portals AOL, MSN and Yahoo are pre-roll units, viewed prior to clips. However, others are experimenting with new forms. YouTube earlier this month introduced a new ad model that lets users choose what ads to watch, a tactic that Google is also using in its AdSense network.

EMarketer forecasts video placements will make up 8 percent of all Internet ad spending in 2010, up from 2.3 percent today.

“As more TV networks make their content available on the Web, deep-pocketed traditional marketers will better see online video as a necessary piece of their campaigns,” David Hallerman, an eMarketer analyst, said in a statement.