Despite these projections, both traditional and interactive advertising agencies are struggling to determine how to strategically fit online video into the marketing mix for their customers. Online video provides a new medium and a major opportunity, and both types of agencies need to prove they can deliver.

Traditional agencies
While many traditional ad agencies know how to create powerful, emotionally moving video that can sell a product, the complexity of targeting and interacting with end users on the web is still elusive. Conversely, interactive agencies have the web dynamics down to a science, but have yet to master the art of creating engaging video. Regardless, both need to master the art and science of reaching, engaging and persuading consumers through online video.

Major traditional advertising agencies have never particularly liked the internet as a medium and were happy to leave it to the interactive agencies. Television was their major game, and until recently, the web didn't do television.

But with traditional television advertising facing new challenges, the rise of DVRs, audience fragmentation and over commercialization, now is the ideal time for the rise of a big internet television business that includes commercials -- and traditional advertising agencies are starting to pay attention.

Interactive agencies
On the other hand, interactive agencies have always had to be satisfied with vehicles like banners and websites, and they've done a really good job of producing results with those less-sexy forms of advertising.

According to Forrester's latest research of the 15 largest interactive marketing agencies in North America, "The Emerging Technologies That Matter Most to Interactive Agencies," 10 out of 15 noted online video as the No. 1 web technology and a critical component of their continued success.

Many firms have even established in-house video production units or created strategic partnerships with filmmakers and video providers. It's clear that interactive agencies now see the promised land of online video advertising and are embracing it.

While traditional and interactive agencies have unique histories and challenges, they also share major infrastructure issues that have to be solved as television advertising moves onto the internet.

Neither the traditional TV buying systems nor the current internet ad placement process is good enough to support what will be required to effectively run web video advertising programs.

Most importantly, regardless of their past, both types of agencies need to figure out online video quickly to ensure future success.