Web video advertising: awaiting the boom

Article Source: http://www.reuters.com

Article Author: By Kenneth Li and Paul Thomasch, (Additional reporting by Kate Holton in London and Nicola Leske in Paris; Editing by Braden Reddall)

Article Link: http://www.reuters.com/article/reutersEdge/idUSN2249916320080522

Thu May 22, 2008 7:44pm EDT

NEW YORK (Reuters) – Any conversation about hot spots in advertising inevitably swings toward online video, with marketers anxious to reach a huge audience watching their favorite TV show or homemade videos on the Web.

Why, then, did U.S. marketers spend just $471 million on online video advertising last year, according to Forrester, representing only 2.6 percent of all interactive marketing?

Executives attending the Reuters Global Technology, Media and Telecoms Summit this week cite inexperienced creative and sales staff and fear of the unknown among the roadblocks for online video advertising.

They widely agreed, however, that it was only a matter of time before it takes off.

“You have some terrible ads which we could be ashamed of and you have some great ads,” Publicis (PUBP.PA: Quote, Profile, Research) Chairman and Chief Executive Maurice Levy said.

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