Good news for YouTube: Bullish video ad forecast

The online video ad market will grow to $4.6 billion in 2013, research firm eMarketer forecasts. TV ads, though, don't fare so well.

Stephen Shankland Former Principal Writer
Stephen Shankland worked at CNET from 1998 to 2024 and wrote about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
Expertise Processors | Semiconductors | Web browsers | Quantum computing | Supercomputers | AI | 3D printing | Drones | Computer science | Physics | Programming | Materials science | USB | UWB | Android | Digital photography | Science Credentials
  • Shankland covered the tech industry for more than 25 years and was a science writer for five years before that. He has deep expertise in microprocessors, digital photography, computer hardware and software, internet standards, web technology, and more.
Stephen Shankland
2 min read

Online advertising may be dragging, but one analyst firm expects the market for video ads to grow 45 percent to $850 million in 2009.

An eMarketer study released Tuesday forecast more growth in years to come: $1.25 billion in 2010, $1.85 billion in 2011, $3.0 billion in 2012, and $4.6 billion in 2013. That's good news for sites such as YouTube that are trying to build an online ad market around video, though the size of the market is still dwarfed by other types of ads.

The company also had a relatively rosy forecast for search ad spending, which pays Google's bills and which provided much of the impetus for Microsoft's attempt to acquire Yahoo.


"While search marketing is not recession-proof, it is recession-resistant, with spending growth in 2009 at 14.9 percent, to $12.3 billion," eMarketer said. "Because search is highly measurable, that will help retain many budgets and increase some others, as advertisers look for secure and effective marketing methods to combat the fear inherent in an economic meltdown."

eMarketer forecast search-ad spending would increase to $13.9 billion in 2010, $15.6 billion in 2011, $17.7 billion in 2012, and $19.5 billion in 2013.


TV ads, meanwhile, will shrink from $69.8 billion in 2008 to $66.9 billion in 2009, then down to $67.2 billion in 2010.

The company also predicted a new revenue model in 2009 for social networks, sites that so far have struggled to make a big business out of advertising. "E-commerce will be a growing revenue stream for social network sites. Expect both MySpace and Facebook to enhance their self-serve advertising systems to allow consumers and businesses to buy and sell real-world goods and services," eMarketer said.

E-commerce overall is expected to grow 4.1 percent from $136.8 billion in 2008 to $142.4 billion in 2009. By 2012, it should reach $183.9 billion.