Yet Another Small, Pointless, Video Ad Market Estimate

eMarketer deflated some hopes a few weeks ago when it cut its estimate for online video advertising by nearly two-thirds from $1.4 billion to $505 million in 2008. That was due to a change in methodology at the Interactive Advertising Bureau, on which eMarketer’s video estimate was based.

But, as TV Week’s Daisy Whitney pointed out, it’s a pretty meaningless stat because it only counts traditional pre-, mid-, or post-roll ads, not product-placements or sponsorships where online video producers make most of their money.

Now eMarketer is citing another estimate from video ad company LiveRail that’s in the same ballpark: $619 million in 2008, growing to $1.4 billion in 2010. But LiveRail’s estimate has essentially the same blindspot in that it defines an ad like the IAB does: TV-like advertisements before, during or after the video. As prolific vlogger Kevin Nalts notes on his blog, by that definition, “I make zero income on online-video advertising.”

See Also:
Web Video Market Estimates Basically Meaningless
Sorry Investors: The Online Video Pie Just Shrank By 65%
Video Ad Companies: People Love Watching Our Video Ads!
Online Channel-Flippers Barely Stop For Video

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