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Driving Forward > Digital Marketing Blog

Advertisers Hesitant to Sponser User-Generated Videos

Given the popularity of online video services such as YouTube and Google Videos, one could make the assumption that these services also produce the greatest advertising revenue. The graph below counters this point, revealing that in reality broadcaster networks possess the largest revenue share.

By 2013, US ad-supported online TV revenues are predicted to jump from $448 million in 2008 to $1.45 billion, a total increase of about 224%.

The overall spending in online video advertising is also projected to grow significantly, and by 2013 reach as high as $4.09 billion.

The amount of revenue that TV companies receive in ad revenue is still small in comparison to the funds they pull in through traditional advertising. However, some analysts predict this gap to close in the next few years.

Source: eMarketer, August 5, 2009

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