Video Ads = Fastest Growing Online Ad Format

According to Strategy Analytics' latest research, global expenditure on online advertising rose by nearly a third to $47.5 billion in 2007 and is set to pass the $100 billion mark by 2012. The report, "Online Advertising: Global Market Forecast,” notes that while web video commercials are a relatively recent innovation, they already generated revenues $1 billion last year, and are expected to be the fasting growing online ad format, reaching $7 billion by 2012 at an average annual growth rate of 48%.

"Increased broadband speeds and rampant growth of all forms of online video in 2007 have created a foundation for web video commercials,” comments Martin Olausson, Director of Digital Media Research at Strategy Analytics. "However, while this emerging genre has great growth potential, it will continue to be dwarfed by the power of search and banner formats for the next five years.”

Wider adoption of broadband internet services will help drive online advertising revenues towards $101.3bn by 2012 at an average annual growth rate of 16.3%. The report provides a five-year outlook for global and regional online advertising expenditure across N. America, W. Europe, CE. Europe, APAC and CALA, and segments revenues by Classifieds, Search, Display Ads, Rich Media Ads and Web Video Commercials.

Analyst Blog: www.strategyanalytics.com/blogs/dmercer

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