Consumers: Less TV, More Internet Video

According to eMarketer estimates, U.S. Internet video ad spending this year will reach $775 million, an 89% gain from last year's $410 million figure. Why marketers see such strong gains for online video advertising is a classic case of money following eyeballs, advertising chasing the audience; however, it is currently a slow-motion chase. Nevertheless, 32% of respondents in a September 2006 Associated Press and AOL poll conducted by Ipsos said they watch more online video now than a year ago. Similarly, a recent survey from Piper Jaffray, the Minneapolis-based investment bank, found one-third or more of every age group watching less TV now than they did two years ago.

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