Video Entertainment Brands Relying More on Digital Ad Spend As Competition Intensifies

December 3, 2020

Zenith Video Entertainment Brand Ad Spend Nov2020In a year when the COVID-19 pandemic has had a negative impact on global ad spend almost across the board, video entertainment ad spend appears to have weathered the storm better than some, per a new report [download page] from Zenith Media.

Estimates from the report show that video entertainment brand advertising is expected to remain steady, decreasing by just 0.2% this year across the 10 markets analyzed. This compares favorably to the 8.7% loss the total ad market is expected to incur for these same global markets. Zenith attributes video entertainment brands’ ad spend to their ability to remain strong during this time of increased customer demand, a larger supply of content available, and competition among video brands.

An earlier forecast from Zenith found that digital will account for a little more than half of all global ad spend this year. While video entertainment brands already spend more than half their advertising dollars on digital (53% in 2019), advertisers have dedicated an even larger portion (57%) of spend towards digital formats this year after out-of-home and cinema advertising plummeted due to the pandemic.

Looking specifically at the US and UK market, online video brands have increased their advertising budgets significantly. In 2019, US online video brands saw a 142% increase in advertising budget, compared to the 15% increase by pay-TV brands. The difference in spending increases was not quite as dramatic in the UK, but remains notable. Online video platforms increased their ad spend by 79% last year, while traditional TV brands only hiked their ad spend by 34%.

The future is not as bright for video entertainment ad spend, however. Zenith expects to see no growth in the market in 2021 and only minimal (1.3%) growth in 2022, underperforming the wider advertising market. At the same time, by 2022 video entertainment brands’ ad spend is expected to be slightly (1.2%) higher than it was last year, while overall advertising spend is forecast to still be 0.6% lower than it was in 2019.

About the Data: Findings are based on analysis of ad spending in 10 markets: Australia, Canada, Germany, India, Italy, Russia, Spain, Switzerland, the UK and US which collectively account for 57% of global adspend.

45th Parallel Design Ad

Explore More Charts.

Pin It on Pinterest

Share This