Advertisers will spend $505 million on online video advertising in 2008, according to a downward-revised projection by eMarketer, which said the significant drop was “due to changes in methodology, based on historical data from the Interactive Advertising Bureau (IAB), eMarketer’s benchmark source.”

Though the online-video ad spend projection is a severe decrease from the one eMarketer issued in February - which forecast a spend of $1.4 billion - the lowered estimate still signifies an increase of 55.9% over 2007 spending levels, it said.