Video index and advertising firm blinkx is rapidly expanding, though failed to meet analysts’ projections, according to their report. blinkx, based in San Francisco and London, reported a 12-month revenue of $114 million, less than the $121.5 million analysts had predicted. Still, this is a 72% increase from a year ago.

blinkx CEO Suranga Chandratillake states, ”Whilst it is disappointing to deliver revenues a little below expectations it is worth noting that in a challenging economic climate, blinkx outperformed the aggressive growth of the online video advertising industry by over 80 percent.”

With online video benefitting from more professional content, as well as making the jump form the desktop to the living room entertainment center, blinkx appears to be in a good position – the platform carries over 35 million hours of searchable video coming from 720 media partners, and the site exceeded 100 million unique users in January. The company expects an operating profit of $10.3 million, but $1.3 million in actual profit.

According to eMarketer, digitial video advertising sales will grow over twice as fast as that of the overall online market through the end of the year. Video is expected to bring in $3.12 billion in 2012 and $9.3 billion by 2016.

The latest reports on the state of online advertising are on par with a study from April of last year, concerning more marketing budgets turning to online video.