Video ads may have a small share of the online advertising market, but they command premium prices for publishers moving content online. Those two facts may change in the near future, however, according to a new study by eMarketer.
Online video advertising currently constitutes about two percent of the online ad spend.
The "Video Advertising Online: Spending and Pricing" report found that by 2013, U.S. spending on online video ads will constitute almost 10 percent of the total spent on online advertising. They also found that video ad spend, which is at about $505 million this year, should reach about $5.8 billion by 2013.
Despite its currently limited reach, online video advertising garnishes top dollar for publishers. The average video CPM among seven Web publishers surveyed was about three time higher than the average display ad at $43, compared to $15 for other formats.
The number of consumers who streamed online video doubled this year, jumping from 32 percent a year ago to 63 percent today. But while more web users are watching videos online video, they are not watching commercials at the same rate as their television viewing counterparts.




