IAB: Online video advertising is a powerful tool

Online video advertising is a "powerful tool" for small businesses, according to the Internet Advertising Bureau (IAB).

Jack Wallington, IAB programmes manager, claims that online video advertising allows small businesses to target and engage with consumers like "no other format".

"It is a powerful branding and messaging tool because people that choose to watch video clips online are receptive to adverts that are short and relevant to the content they want to watch," he explains.

Mr Wallington says the cost of online video marketing can vary depending on the publisher and the quality of the content.

According to a 2007 study by the research company Forrester, 52 per cent of people spend more time online than watching television.

A study by Hitwise also found that internet traffic to video websites has increased by 178 per cent in the last 12 months.