Video advertising growth is expected to continue throughout 2010, reaching 40% growth by the end of the year, according to new figures from eMarketer.

According to the latest ad spend figures from the Internet Advertising Bureau and PricewaterhouseCoopers, video advertising saw the highest growth rate of all medium in the fourth quarter of 2009, with spend up 39% to  $US1 billion.

A survey from video advertising network BrightRoll indicated that 94% of agency executives planned to spend more on online video in Q1 2010 than the prior year. That proportion was 7% higher than in Q1 2009.

One reason is their satisfaction with online video’s performance, says eMarketer. More than one-half of respondents considered video more effective than other forms of advertising, and 83% claimed they were getting more value for their video advertising dollars than a year ago.

Furthermore, online video’s biggest liability in 2009, targeting capabilities, is now viewed as its greatest asset with more than six in 10 agencies saying that behavioural targeting had upped their video ad performance.

Tod Sacerdoti, CEO of BrightRoll, said, “Online video underwent a cycle of massive innovation in 2009, and has matured into a highly effective platform for advertisers to connect with their target audiences online.”

Some 5.5 billion videos were viewed online in the UK in February 2010 alone, up 37% versus the previous year, according to comScore.

Driven by the popularity of (which accounted for 99.6% of all videos viewed on the property), Google Sites grew 17% versus a year ago to further solidify its position as the leading online video viewing property in the UK, with 2.5 billion videos viewed in February.

Source: 2010