Advertisers are investing "heavily" in online video advertising because of the great returns available, it has been claimed.

Jamie Estrin, managing director of Web TV Enterprise, said that for businesses looking to drive revenue, the medium offers great potential.

He claimed that its ability to target niche audiences is allowing the making to rival television.

"It has advantages to TV in the fact that advertisements can be so targeted around specific audiences and content strands. They get great value for money with the targeting opportunities that online video offers," he stated.

Mr Estrin's comments came after a survey from Deloitte found that only three per cent of respondents named online video advertising as having the most appeal compared to television. This took the majority of the vote with 56 per cent.

However, he claimed that the survey is "completely flawed" and does not reflect the emerging trend.

Mr Estrin said that the online video advertising market is "exploding" at the moment, and interest is high among business advertisers

"They've been testing the market for the past 12 to 18 months and now they're investing heavily because they have seen great returns. I genuinely believe that that survey is completely flawed," he added.

Posted by Jenny Arthur