Advertising on video websites is a “powerful branding and messaging tool”, the Internet Advertising Bureau (IAB) advised marketers.

The firm said that online video advertising allows for “engagement with consumers like no other format” because the adverts are tailored to the content that they were associated with.

The IAB also stressed that online video advertising are effective because people that choose to watch video clips online are receptive to adverts that are short and relevant to the content they want to watch.

Jack Wallington, programmes manager at the IAB, said: “The cost of online video advertising varies depending on the publisher. The better the content and offering, the higher the premium.”

A report by Hitwise, published in March 2006, found that UK internet use of video websites had increased by 178 per cent in the 12 months from February 2007 to 2008.

A separate report by research body Forrester, predicts that pan European online advertising could reach £10.8 billion by 2012 – more than double the figure in 2006.

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