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Could television-style video persuade more mainstream brands to embrace Internet advertising?

EMarketer estimates that by 2011 online video ads will generate $4.3 billion, or about 10 percent, of overall Internet ad revenue in the United States, up from $410 million, or 2.4 percent, last year.

Web sites have been “draining the life out of newspapers and radio for years,” according to one of the founders of an Internet video site, and now they are going after the advertising revenue stream of television as well.

“The Internet is at an interesting stage — it’s getting both more and less interactive,” said John Barrett, research director at Parks Associates.  “At one end of the spectrum, you’ve got things like social networking. At the other end, there’s more video that people just click, download and watch.”

Suranga Chandratillake, chief executive of Blinkx, said that about 5 percent of viewers typically clicked on a video overlay ad; with banners, advertisers are lucky to get 1 percent of viewers to click through.

Web Sites Go Fishing in TV’s Advertising Revenue Stream - New York Times

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