Report points to video ad growth

4th September 2008

Spending on online video ads in the US looks set to grow by almost two-thirds this year, according to a new report.

Compiled by LiveRail and made available by social media news site ReadWriteWeb, the publication suggested that expenditure could rise to $619 million (£347.9 million) by the end of 2008.

Furthermore, 2009 could bring expenditure of $962 million, rising to over $1.3 billion in 2010.

However, the industry faces a number of hurdles to overcome - such as a high number of different formats that could be confusing for some - before it can see true success, LiveRail said.

"Additional consolidation of vendors and the emergence of market leaders may help resolve some of these issues," it remarked in the report.

According to comments recently made by eMarketer senior analyst David Hallerman, video could be a significant growth area for the online advertising sector.