This is BIG news for publishers who have professionally produced video content online. According to MAGNA Global, a research division of the Interpublic Group, online video ad spending in the US will pass the $1 billion mark in 2011.
MAGNA estimates that the market for online video ads will reach $699 million this year, a 32% increase over the $530 million spent on online video in 2008.
A MAGNA spokesperson said that interest in the online video ad space was being driven not merely by the increase of broadband connectivity, but also by the growth of professionally produced video content.
The movement of viewership is happening from the user-generated content that “accounted for a significant volume of potential advertising inventory in the past,” to professionally produced online video, which grew in terms of time spent by 24% in 2008, after a 50% increase in 2007.
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