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Ad Spending on Web Videos to Reach $33 Billion by 2012
Experts predict spending to grow nearly 60 percent in 2008 alone.
from AICPA Custom Media Solutions

If you think you’ve been seeing a lot more videos on the Web these days, it’s not your imagination. Experts say 43 percent of the U.S population now watches online video — and you guessed it, the advertising community is clamoring for ways to reach Web video viewers.

Close to 130 million Americans will watch online videos this year and ad spending on online videos will reach $505 million this year. That’s a 56 percent increase over last year, according eMarketer, a widely followed New York-based market research firm. By 2012, online video ad spending will reach $3.4 billion, up 78.9 percent over 2011 spending.

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“Even as video becomes the great growth area for Internet advertising, there’s a major disconnect between the amount of time people spend with short-form video and the ad dollars that accompany such video content,” said eMarketer senior analyst David Hallerman in a news release last week. “However, as media companies change their business model, putting more and more professionally created video content online, the audience — and related ad dollars — will increase dramatically.”

CPA Marketing Insider prediction: As with most emerging media, the immutable laws of marketing physics will kick and it’s only a matter of time before the ad dollars follow the eyeballs .