Online advertising declined between Q4 and Q1. Now Yahoo director of video strategy Rebecca Paoletti says she’s seeing uninspiring trends continuing in online ad budgets, which are looking pretty anemic.
“We’re looking at a lot of flat budgets,” she told the BMO Emerging Media Conference, according to PaidContent.
Video ad rates have also been flat, says Paoletti, who said she expects video ad rates to drop in 2009.
That’s not quite as bad as it sounds. Or to be more accurate — not necessarily as bad as it sounds. Because online audiences who watch ad-friendly content are relatively small, but highly sought after, the cost to reach 1,000 viewers often exceeds that of TV. But as more people watch more video, those rates will come down. The metric to pay attention to, for the time being, is overall spending.
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