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NBC's Zucker sees online video ads slide

December 16, 2008 — 10:38am ET | By Pete Wylie

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Jeff Zucker, CEO of NBC Universal, had some dismaying news for online video advertising at a recent investors' conference. NBC Universal, which is a major backer of online video platform Hulu, reported that online video advertising slowed significantly recently.

"The most surprising thing to us is how fast the digital marketplace has come to a standstill in the fourth quarter," Zucker said during the conference, according to the Wall Street Journal.

Most online video advertisers have remained optimistic about the uptake of their product, considering online video is a growth market and most projections for ad spends still indicate strong increases in ad spends in 2009. Jason Glickman, CEO of online video ad network Tremor Media, said cycles are lengthening somewhat, but that uptake appears to still be strong heading into 2009.

"I think online video is showing such strong ROI that it and other digital advertising units are the last places people are going to cut back," Glickman said.

Still, complaints about the format include overpriced CPMs, non-standard ad units, and small consumer bases, which continue to make some advertisers hesitant about jumping into the online video market.

Given the highly uncertain economic climate, online video advertising faces an uphill battle to win spends from tried-and-true media like TV. But many online video advertisers explained that their products offer more targeted audiences and measurable results, and so they continue to anticipate increased spending on it, as it demonstrates more and more ROI for advertisers and brands.

For more:
- see the Wall Street Journal article here