Online video adspend will rise to $61bn by 2021
Zenith’s Online Video Forecasts 2019 report has indicated that advertising expenditure on online video will rise from US$45bn this year to US$61bn by 2021. The increase will occur at an average rate of 18% a year, compared to 10% a year for internet advertising as a whole.
The report which was recently released also indicated that television adspend would shrink from US$183bn to US$180bn over the same period, as ratings continue to drop in key markets, while online video will rise to the equivalent of a third of the entire TV market in 2021, up from a quarter this year.
According to the report, “Online video has boosted the amount of time that consumers spend watching audio visual content and is amplifying advertisers’ ability to reach consumers with high-impact brand-building ads,” said Matt James, Global Brand President at Zenith. “The growth in serving ads to consumers via connected television sets will be a huge contributor to the growth of this format in the coming years, and it will help to bring attribution back to TV advertising.”
This increase is being driven by a rise in consumers’ appetite for online videos. The report said the average person will spend 100 minutes each day watching online video in 2021, up from 84 minutes this year. That’s the equivalent of watching 25 continuous days of video in 2021.
The amount of time people spend viewing online video has grown rapidly across the world, at an average rate of 32% a year between 2013 and 2018, boosted by improvements in display sizes and quality of mobile devices, faster mobile data connections, and the spread of connected TV sets.
China and Sweden have the keenest online video viewers, with the average person in each country expected to spend 103 minutes a day watching online video this year. These are the only countries where online video viewing exceeds 100 minutes a day, but by 2021, Zenith expects Canada, India, Mexico, the UK and the USA to join the list.
“The consumption of online video is growing rapidly, and the average person will spend half as much time viewing online video as they spend viewing conventional television this year,” said Jonathan Barnard, Head of Forecasting at Zenith. “This fast-expanding supply of audiences is fuelling rapid growth in demand from advertisers, making online video the fastest-growing digital channel by advertising expenditure.”
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