US Online Video Advertising Spend $1bn 2010

Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) released the US IAB Internet Advertising Revenue Report for the first half of 2009 on 5th October. U.S. Internet advertising revenues were at $10.9 billion in that six month period.

The important metric is the report that digital video continues to experience robust growth with a 38% increase from the first half of 2008. This is a dramatic rise given the recessionary pressures on traditional media spend to some extent parts of the online advertising sector.

The report reveals an audited video spend of US$477m in the first six months of 2010. With economic conditions easing, the Christmas reatail period ahead, and further embracement of video by advertisers compounded by more online options we can see online video advertising spend hitting $1bn in the USA for 2010.

Here in New Zealand our local IAB is considering breaking out further detail of spend so we can also see which formats are rising faster.  In 2Qr the NZ IAB / PWC reported one of the highest ever spends – $52.49m. The Moving Annual Total is now at an all time high of $199.8m. In New Zealand online advertising spend is ahead of outdoor and cinema and is likely this year to overtake magazine advertising spend.

Locally we are seeing a signifcant rise in online video marketing with numerous adverisers and publishers embracing online video advertising, video content and many our using services such as Silverlinemedia.tv to power small business video and classified video content.