Global ad spending on video will increase by 23% this year to $27.2 billion, predicts Zenith in its latest forecast. The forecast calls for video viewing on fixed devices to reach its peak this year.
This year, fixed devices (smart TVs, desktops and laptops) will capture roughly 56% of global video ad spending, or $15.2 billion of the projected $27.2 billion.
But that figure is expected to drop slightly to $15 billion next year, with all the growth going to mobile video ad spending, which will surge from $12 billion to $18 billion. As such, mobile video will occupy close to 55% of global video ad spend next year.
Recent data from Ooyala demonstrates that for the first time in Q1, long-form content accounted for a majority of time spent watching video on both smartphones and tablets.
Video’s Role in Display Spending Continues to Rise
While growth in video ad spending peaked in 2014, Zenith still predicts double-digit increases ins pending next year (21%) and in 2019 (17%).
By 2019, online video will account for almost one-third (31%) of global spending on digital display advertising, up from 28% this year and 21% in 2012.
In the US, a recent forecast from PwC called for video to take majority share of “wired” display ad spending. Mobile video will almost be on par with other mobile digital display formats at that point, too.
Video Viewing on Fixed Devices to Peak
Mobile devices already account for the majority of global online video viewing, per Zenith’s estimates. This year, people will watch an average of 28.8 minutes of video per day on their smartphones and tablets, compared to 18.6 minutes per day on desktop PCs, laptops and smart TVs. That’s around two-thirds (68.4%) of viewing taking place on mobile devices, a figure predicted to grow to 72% by 2019.
That growth is due further increases in mobile viewing coupled with a decline in fixed video viewing, which will peak this year. Although people are spending more time watching online video on smart TVs, that won’t be enough to offset the decreases in viewing on desktops and laptops, says Zenith.
More Than 1 in 5 in the US Mainly Watching TV via Online Video Services
In separate research, Ampere Analysis reveals that more than 1 in 5 internet users in the US strongly agree that “online video services are the main way I watch TV and film.” That represents a sizable uptick from roughly 17% who strongly agreed with that statement 6 months earlier.
During Q1 2017, Ampere estimates – on the basis of its survey of 21,000 internet users in 10 markets – that almost one-third (30%) of US internet users watch video on their smartphone on a daily basis.
About the Data: Zenith’s forecasts are based on an analysis of 63 key markets around the word. Online video means all video content viewed over an internet connection, and includes social media sites, broadcaster-owned platforms such as Hulu, and subscription services including Netflix.