Web and TV to Converge in 2011

A new study from eMarketer finds TV and web video may converge in 2011, reports Business Week.

Video ad sales are expected to climb from $775 million this year to $3.1 billion in 2010 and then a jump to $4.3 billion in 2011. However, this still only accounts for $1 of every $10 spent on Internet advertising.

Ultimately, eMarketer believes over the next few years video advertising will enter a grand experimental phase. It is after 2011 that TV and web advertising will really start to converge. Among the current experiements:

Major media companies like Sony are already starting to blur lines. Recently launched Crackle touts high-quality video and has the goal of finding high-quality talent to fill the netwaves.

Yahoo is testing animated window-shade ads that users can pull down over a video and graphical ads that appear during a video in the same way TV networks show ads at the bottom during programming.

Startup VideoEgg is experimenting with overlaid graphic ads that appear within content. A good move, considering 77 percent find current video advertising, such as pre-roll, too intrusive.

Cost is also a major reason why video is growing. Startup TurnHere produces internet videos for as little as $500, pulling from a network of 2,000 independent filmmakers who can shoot for local businesses.