Video online advertising is a small segment of total online advertising but has one of the rosiest futures. $378 million for 2006 which will rise to $1.3 billion in 2011. I will bet the ranch I don't have (not much of a bet, is it?) that this $1.3 billion will look like a laughably small estimate by 2011. Another market to watch is the local online ad market, which grew a remarkable 32% in 2006 to total 7.7 billion. It is supposed to double by 2021.
'In five years, local online video advertising will surpass $5 billion, representing more than one-third of all local online advertising. Where will most of that money go? Not to the purveyors of traditional "word from our sponsor" commercials, but to those who can offer long-form video information that their Web site visitors actually choose to see."
Borrell Associates, Local Online Video forecast
"However, eMarketer last month forecast that online ad growth will slow this year to 19 percent, reaching $19.5 billion."
I reckon the ad spending is going to exponentially rise once some tiny startup figures out how to effectively advertise to the cellular market. Exciting times!
True but it's better to development a actual business model than rely solely on Ad revenue.