How Online Video Advertising Will Flourish in the Next 3 Years

Wed Aug 9, 2017

Rachel Cagle

Online video advertising is becoming increasingly popular with each new device consumers can use to view it. In 2016, advertisers spent $22.2 billion on online video ads alone and that number is expected to increase 23% to $27.2 billion in 2017, 21% in 2018, and then 17% to $38.7 billion by 2019, according to Zenith’s Online Video Forecasts 2017. Not only that, Zenith predicts that by 2019, online video will encompass 31% of all digital display advertising spend.

Why all this confidence in online video? Last year, the average amount of time consumers spent viewing this advertising medium was 39.6 minutes a day, and that is expected to increase to 47.4 minutes a day in 2017.

For the rest of this year, the division of online video ad dollars is anticipated to be divided as such:

  • Fixed Video: $15.2 billion
  • Mobile Video: $12 billion

The reason for this division is that, while a significant portion of the population does have the means to view online videos via mobile devices, they tend to watch the mobile videos in distracting environments. Fixed devices on the other hand, typically being on larger screens, are usually placed in areas where they are the center of attention. However, Zenith doesn’t expect this spending trend to last. By 2018, Zenith anticipates mobile spend amounting to $18 billion, while fixed will remain fairly stagnant at $15 billion.

Even in 2017, mobile dominates fixed in terms of viewing time, with its daily average viewings totaling 29 minutes compared to fixed’s 19 minutes. As mobile technology becomes more advanced, Zenith predicts mobile’s viewing times will only increase, first by 25% in 2018 and then by 29% in 2019, while fixed devices’ viewing will drop 1% and 2% in 2018 and 2019, respectively. Additionally, mobile is on track to rise from encompassing 61% of total online video views to 72% in 2019. Advertisers can’t ignore those numbers in favor of the fewer distractions fixed is associated with for long.

Work with your clients to be sure their ads attract some of the 47.4 minutes a day consumers spend on online video this year. And remember to point out that mobile viewings make up approximately 60% of that time!

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About Rachel Cagle

Rachel is a Brand Research Specialist at SalesFuel. She holds a Bachelors in English from The Ohio State University. She specializes in major accounts research for AdMall.

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