Mobile video growth driven by desire to reach new ad audiences
Mobile video revenue is set to hit $25bn by 2021. That’s according to new research from market intelligence firm Strategy Analytics.
Much of this growth is being driven by advertisers who try to reach new audiences that are consuming more video on mobile devices. The Global Mobile Video Forecast: 2010-2021 report also finds that mobile video users will more than double to 2bn users by 2022. That’s a 36% penetration among global mobile users.
Global Mobile Video Penetration of Mobile Users by Region: 2010-2021
Wei Shi, Analyst, Wireless Media Strategies, explains:
“The strongest growth in mobile video revenue will come from advertising-funded content as advertisers look to catch up with the increasing quantity of video consumption. Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years.”
Advertising spending on mobile has been increasing rapidly. In 2010, advertising made up just 2% of mobile video revenue. Since then, it’s shot up to 40% in 2016 and is poised to reach 66% by 2021.
Social platforms are encouraging the push towards video with Facebook, Twitter and WeChat all having turned to the medium to grow their user engagement rates and reduce churn. The potential for monetisation is huge.
Nitesh Patel, Director, Strategy Analytics, adds:
“Despite growing video consumption on mobile devices, advertiser expenditure on mobile video has yet to catch-up with this growth. Furthermore, new modes of mobile video services such as live streaming platforms like Periscope and Facebook Live are focused on building audience before revenue. Currently, social networks have launched live video streaming as a tool to increase user engagement and to extend the time spent by users while inside of social networks, but we expect direct monetization to follow.”