Online video views are set to grow 20% this year as consumers worldwide spend an average 47.4 minutes each day watching videos online – up from 39.6 minutes in 2016. That’s according to the latest ZenithMedia Online Video Forecasts 2017.
The increase is largely driven by mobile devices with views jumping 35% to 28.8 minutes daily.
As video content continues to amass rapidly, social media platforms have been rapidly adapting to embrace mobile video, adding tools to create and share videos.
According to Zenith, 2017 is likely to represent a peak for fixed-device video, with consumers spending around 19 minutes per day viewing content. Smart TVs are also seeing a rapid increase, but overall content viewing on fixed devices (which includes desktops and laptops) will be down 1% in 2018 and 2% in 2019.
In the meantime, mobile video is set to grow 25% in 2018 and 29% in 2019, driven by improvements to mobile technology and network connections. Indeed, mobile devices are likely to account for 72% of all online video views by 2019 – that’s an increase of 61% from 2017.
What does all this mean for advertisers? Growth.
Indeed, Zenith forecasts global ad spend for online video ads will increase 23% in 2017 to $27.2 billion up from $22.2 billion in 2016. However, growth did already peak back in 2014 at 37% and is currently in a slow decline.
By 2018, video ad expenditure could grow 21% and 17% in 2019.
“Online video gives brands the opportunity to use powerful digital technologies to engage with consumers as individuals, not demographics, in the sort of high-engagement environment that makes television advertising so effective for brand-building,” said Vittorio Bonori, Zenith’s Global Brand President. “Television and online video and television work well together as complements, the former offering reach and shared experiences, and the latter offering targeting and personalisation.”
There is no denying that online video is becoming a more important advertising tool. In 2019, online video will account for 31% of total expenditure in digital display advertising, up from 28% in 2017 and 21% in 2012.
Despite more video views happening on mobile, more ad expenditure will go toward fixed devices at an estimated $15.2 billion in 2017 compared to $12 billion on mobile. Arguably, fixed devices may be less distracting than mobile devices and hence be charged at premium rates.
Jonathan Barnard, Head of Forecasting and Director of Global Intelligence at Zenith, confirms that online video is among the fastest growing formats in advertising. Demand is huge for quality content.
“Video platforms that can capture the attention of the most consumers with the best content will reap the highest rewards.”