U.S. Online Video Ad Spend to Reach $3.1 Billion in 2012

By Nick Edwards on Jan 25 2012 at 8:00 AM

Tradition had dictated that if an agency wanted to air an ad, buy a spot on TV. It was industry norm, easy to do and a guarantee to reach X number of people.

But with the advent of time-shifted content (e.g. DVR), that reach has become more limited as people record content to watch at a later time, fast forwarding through ads that don’t interest them. Enter online video ads: With analytics, it's easy to track exactly who's watching and how effective these ads are. eMarketer predicts U.S. online video ad spend will leap 40 percent this year to reach $3.1 billion, after a 52 percent increase in 2011.

The large increase can be attributed to pre-roll ads, with 63 percent of advertisers planning to buy these types of advertisement in 2012, roughly the same number as the year prior. The other big space is mobile: 55 percent of marketers said they plan to buy mobile ads, a jump from 39 percent in 2011. Meanwhile, 53 percent of marketers said they would buy in-banner video ads, while 47 percent are eyeing banner ads.

eMarketer says 71 percent of U.S. Internet users, about 169 million people, will watch online video each month in 2012.

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