Michael Learmonth has reported about the current estimates regarding investments in the online video business and the returns that are expected to fall by a staggering 65% of the initial estimates.
The eMarketer comes trotting in with the new estimates that touch a pretty high target of $505 million though they fall from the early dreamy target of $1.4 billion (a 65% fall). There are quite a lot of reasons but the one highlighted as the major is ‘changes in methodology based on historical data from the Interactive Advertising Bureau’.
That isn’t too hopeless as the revised estimate shadows the previous earnings of the year 2007. Senior analyst David Hallerman commented:
Even as video becomes the great growth area for Internet advertising, there’s a major disconnect between the amount of time people spend with short-form video, especially user-generated, and the ad dollars that accompany such video content. However, as media companies change their business model, putting more and more professionally created video content online, the audience, and related ad dollars will increase dramatically.
Very right, the trend hasn’t got much fire as majority of the population still disregards the idea of watching short skits over the web but the current trend is set to change as media firms take it to the field the idea of boosting the online video and ad business. There has been a lot of topsy turvy within eMarketer itself with cut offs in its ad estimates, let’s hope to have more news at this and see how true the estimates turn out to be.