Mobile devices are now the preferred platform for viewing online videos at an average 19.7 minutes a day, compared to 16 minutes on fixed devices such as desktop computers and smart TVs. That’s according to a new report from ZenithOptimedia which noted a 39% jump for mobile since 2015 when just 14.2 minutes were spent viewing mobile video.
Mobile the dominant platform for online video
The Online Video Forecasts 2016 is based on historical data and forecasts for online video consumption and advertising.
The report says that much of mobile video’s growth is being driven by the popularity of mobile devices. Lower income households in particular favour such low-cost devices and given the growth in display size that has happened over the last two years as well as improvements to networks, mobile seems unstoppable.
ZenithOptimedia forecasts mobile video consumption will reach 33% by 2017 and grow another 27% in 2018. Mobile devices will account for 64% of all online video consumption in 2018.
Naturally, that means advertisers stand to benefit. Online video ad spend is forecast to grow 19.8% a year to reach $30bn by 2018. The success of the online video advertising format means it continues to snap up market share from traditional banners and formats that are proving less effective now.
However, whilst video consumption is dominated by mobile devices, ad expenditure isn’t. In fact and perhaps rather surprisingly given these trends, ad spend will be greater for fixed video adverts accounting for 68% of all online video ads in 2016. The report expects fixed devices to outscore mobile until 2018 for ad spending.
Jonathan Barnard, Head of Forecasting at ZenithOptimedia, explains:
“The spread of mobile devices and high-speed connections means consumers will have online video content at their fingertips throughout the day. This creates new opportunities for advertisers to communicate with consumers, using online video ads to combine the brand-building power of audiovisual advertising with pin-point targeting and personalization.”
Markets are becoming more aware of the opportunity that online video presents. Not only are mobile videos popular with younger audiences, but they also add significant reach beyond TV campaigns.
However, within smaller markets advertisers have been reusing their TV ads for online video ads which usually doesn’t work as well. Shorter is better on mobile.