Speaking about the future of online video at the Interactive Advertising Bureau’s recent MIXX conference, eMarketer CEO Geoff Ramsey said that in the short- to- mid-term, television and online video models will merge, both in terms of content and ads.

Mr Ramsay believes that while television will become more measurable – and accountable – the quality of online video content will improve to rival TV. Meanwhile, Ramsay sees the on-demand video model to be particularly promising. He also sees the format – where viewers can watch whatever they want at any time – will continue to be largely ad-supported.

While the online video medium will remain small in terms of total ad dollars — especially compared with the $70 billion U.S. television market — eMarketer expects it to grow to exceed $3 billion by 2012 in the U.S.

Source: eMarketer, “Where Is Online Video Headed?”, eMarketer, October 3, 2008

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