Local advertisers are spending more on Internet video commercials, with eMarketer reporting that both The Kelsey Group and Borrell Associates predict local online video ad spending to increase over the next few years.
The Kelsey Group reports in its “US Local Video Forecast (2007-2012)” study that local online video spending will increase from $11 million in 2007 to $1.5 billion by 2012. Meanwhile, in figures released in April 2008, Borrell Associates expects local online video ad spending to reach $1.2 billion this year.
David Hallerman, a senior analyst with eMarketer believes that local advertisers are attracted to online video because of the relatively low cost of creating online video commercials and because there are more and more avenues to place such commercials on relevant media.
Local newspapers and television stations are increasingly serving up online video content on their websites, which in turn provides opportunities for local advertisers to display their video ads.
Meanwhile, eMarketer notes that the growth in online video ad spending also reflects the rise in the audience for online videos. eMarketer predicts that the number of people who watch online video content will grow from 137.5 million in 2007 to 154.2 million in 2008, and will reach 190 million in 2012.
If these figures are to be believed, Internet marketers focusing on helping local businesses market online may find a ready market in helping such businesses produce and run online video commercials.
Source: eMarketer, “Local Online Video Ads, Dollars”, eMarketer, July 7, 2008
