Where’s the Money?

Are you old enough to remember Where’s the Beef? Now say it again but replace Beef with Money:

In 2007, U.S. advertisers will spend $5 million on online video ads. By 2011, the amount spent is expected to grow 160 percent to $1.3 billion. While spending on text ads will continue to represent a greater part of the total online advertising market, the segment is expected to grow at a slower rate—45 percent—over the same period, according to the Jupiter forecast.

Let’s ignore for the fact that their math is wrong (magazine writers aren’t exactly noted for their arithmetic). With all the buzz around online video lately you’d think that there was piles of cash just sitting around for the taking. $5 million? That’s it? There are a lot of new companies that are going to be out of business soon. The entire market in five years will be less than the entire amount Google spent on YouTube.

Posted by Ori on 10/27 at 01:29 PM

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  1. I guarantee you that it’s a typo on their part, and they intended to say $500m. Then, the math works.

    Posted by the daniel  on  10/27  at  02:52 PM

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