US Video Ad Spending, 2013-2018 [CHART]

eMarketer’s outlook for both AOL and Yahoo is predicated on increases in digital display revenues due to ads placed against premium video content, which includes full-length shows, digital shorts and other professionally produced programming. AOL will see its US display ad revenues grow nearly 20% in 2014, eMarketer estimates, due in no small part to the success of its Adap.tv ad platform. Meanwhile, Yahoo’s US display business is currently in decline—expected to drop 3.6% this year—but aided by its intensified push into premium video content this year, we estimate that Yahoo’s display ad revenue growth will turn positive again in 2015.

Overall, US digital video ad spending continues to increase significantly, up 56.0% this year to reach $5.96 billion, according to eMarketer. Growth will taper off rapidly, however, slowing to 13.9% by 2018, when digital video spending will reach $12.82 billion, according to our forecast. Though video advertisers are following the broader trend of shifting dollars to mobile devices, mobile video ads actually suppress the overall market in part, since many smartphone video ads are short ads accompanying short clips and often cost less than desktop video ads. Read the rest at eMarketer.