U.S. Online Video Advertising Market to Hit $27.2 Billion
1st Aug 2017
It has been predicted that the increases in the online video advertising market in the U.S. alone this year could reach $27.2 billion, according to Zenith. In addition, estimated growth could reach $38.7 billion by 2019.
Currently, desktop and TV is still experiencing higher ad participation than mobile, with an average estimated U.S. spend this year of $15.2 billion, compared to $12 billion on mobile. Interestingly, more video streaming is happening on mobile devices, but it is the bigger screens of non-mobile that is attracting the advertising dollars. Predictions remain firm, however, that the mobile online video advertising market will increase, and a shift will occur in ad spending by the end of next year.
How will the shift to mobile online video advertising occur?
According to the research by Zenith, which also examined how viewers are using devices, mobile will increase by another 11% by 2019, and will make up 72% of all online video views.
Also, to increase, will be the average viewing time per session. This year, the global average will rise from just under 40 minutes (estimated for 2016) to 47.4 minutes, and almost all that increase will be on mobile devices, it is thought.
Mobile technology driving the shift in advertiser revenue
With the rise in the development of mobile devices, the introduction of bigger and better screens and speed increases will deliver greater capacity for users to view online video.
Of course, with the increased use of mobile to view online video, advertisers will be led to spend more in this area, not necessarily moving away from non-mobile, but spending in the online video advertising market should certainly fuel the shift in predicted revenue to mobile over the next two years.
It is clear to see why the industry suspects that this shift will be a significant one, when we see mobile use on the increase in every sector of the industry. Non-mobile online video advertising is still expected to increase, but only slightly with predictions of just a 2% increase this year, a drop of 1% in 2018 and a further drop of 2% in 2019.