Internet video advertising may soon be one of the fastest growing areas of net advertising, according to a report from research firm Off The Record. According to the report, advertisers are finally taking Internet video seriously.

Highlights:

• Video ads are growing faster than ad execs expected.
• Video ads account for only a tiny percentage of overall web ads, but are expected to be the fastest growing category for the foreseeable future.
• Auto and entertainment categories are strongest, with good growth in consumer products, technology, and fast food.

Other Report Results:

• Video CPMs are declining.¬† Advertisers reported average decline of 8%-13% y/y
• Video spending is coming from budget growth and offline budgets.
• Advertisers are wary of pre-rolls and post-rolls, which they regard as the next “pop-up ads”

via SVI