Online Video Ad Market to Reach $27.2 Billion U.S. this Year

Online video viewing is on the rise, and that’s leading to an increase in online video advertising. Media buying agency Zenith forecasts the global online video ad market will reach $27.2 billion U.S. this year, an increase from 2016’s $22.2 billion U.S. It should grow by 21 percent in 2018 and 17 percent in 2019, reaching $38.7 billion U.S.

In 2012, online video made up 21 percent of total digital display advertising. That will increase to 28 percent in 2017 and 31 percent in 2019.

Currently, most video streaming is done on mobile devices, but more online video advertising is on non-mobile devices (including computers, laptops, and TVs). Zenith estimates mobile video advertising will reach $12.0 billion U.S. this year, while non-mobile ad spending will reach $15.2 billion. Advertisers prefer non-mobile devices since they offer bigger screens and are typically used in less distracting environments. The industry is due for a shift, however, and Zenith predicts mobile video ad spending will overtake non-mobile by next year.

In 2019, mobile devices will make up 72 percent of all online video viewing, Zenith says, up from 61 percent in 2017.

Looking at viewing numbers, Zenith says global viewers will average 47.4 minutes of online video viewing in 2017, up from 39.6 minutes in 2016. Nearly all of that increase will come from mobile devices, where online video viewing will grow 35 percent to 28.8 minutes per day. Looking ahead, mobile viewing should grow another 25 percent in 2018 and 29 percent in 2019 thanks to an increased use of mobile devices, better screens, and faster connectivity.

Viewing time on non-mobile devices will grow only 2 percent in 2017 to 18.6 minutes per day. Within that area, Zenith sees connected TV streaming time rising, while desktop and laptop viewing times are decreasing. Viewing times on non-mobile devices will actually shrink by 1 percent in 2018 and 2 percent in 2019.

This data comes from Zenith’s Online Video Forecasts 2017, and includes all online video sources such as video sharing sites and subscription services.


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