Online Video Ads are Blazin’ Hot

There is no question that online video advertising is generating plenty of excitement, and also a great deal of confusion.

In-stream, in-banner, in-text, linear, non-linear, pre-roll, post-roll, layovers; when it comes to online video ads the jargon piles up faster than e-mail messages. But what exactly does it all mean?

Here, taken from Interactive Advertising Bureau (IAB) guidelines, is a breakdown of the online video ad formats currently in use.

Online Video Ads are Blazin’ Hot

Consumers are of two minds about video ads, too.

“Online video ads spark many of the same reactions that TV ads do,” says Karin von Abrams, eMarketer Senior Analyst and author of the new report, Online Video Advertising: Focus on the UK, France and Germany. “They can be fun, informative, great for engagement and brand-building—and irritating.”

”eMarketer estimates that online video ad spending in the US represents less than 4% of all Internet advertising,” says Ms. von Abrams, “but projects spending on online video ads to more than triple by 2011.”

According to JupiterResearch, the percentage of UK Internet users watching online video leaped from 8% in 2006 to almost 30% in 2007.

Ipsos recently noted that the number of people watching videos online in France has passed 14.2 million—half of the online population.

Research from Isobar found that around 90% of the French online audience ages 15 to 49 had seen at least one video ad in May 2007.

Over half (55.5%) of the respondents to the Isobar survey went on to visit a brand’s Web site, one-third searched online for further product information and over 22% requested further information. What’s more, one in five bought a product as a direct result of seeing a video ad.

Online Video Ads are Blazin’ Hot

According to Nielsen Media Research, spending on online video ads in Germany rose from €1.19 million in the first half of 2007 to €3.92 million by the end of the year—a jump of over 228%. By comparison, spending on traditional online formats grew between 19% and 57% in the same period.A study from the IBM Institute for Business Value, conducted by Zoomerang, found that 71% of German Internet users ages 18-plus had watched online video.

”There is confusion, there are barriers to be overcome,” says Ms. von Abrams, “but in developed countries across the Internet, online video advertising is coming and both marketers and viewers should be prepared for it.”

Interactive Advertising Bureau Via eMarketer