Sure, total TV ad budgets far outpace total online video ad budgets, but consider the growth of each area. TV ad spend is growing by 0 to 2 percent annually. Meanwhile, online video ad spend is growing much faster: Total online video ad spending grew by 20 percent in 2017, reports media buying agency Zenith, a part of Publicis Media. That growth will continue, as Zenith forecasts 19 percent growth this year and 17 percent for the next few years. By 2020, total spending on online video advertising will reach $43 billion USD.
While online video ad budgets are going up fast, Zenith says online video viewing is rising even faster. Viewing grew by 91 percent between 2015 and 2017, while video ad spending grew only 52 percent in the same period. With inventory that plentiful it’s a buyers’ market and pricing have been coming down, often by a lot. Zenith predicts prices will start to stabilize next year.
Looking at video consumption, Zenith says the global average for online video viewing has grown to 67 minutes per day. That number includes videos from all sources, including video sharing sites like YouTube, paid services like Netflix and Hulu, and social networking platforms.
By 2020, look for the global average to climb to 84 minutes per day. Zenith sees China streaming the most at 105 minutes per day, with Russia second at 102 minutes and the U.K. third at 101 minutes.
The rise in online video viewing accounts for nearly the full increase in total internet use, Zenith says. The global average rose by 11 minutes per day in 2017, and will increase by an average 9 minutes per day until 2020.
This data comes from Zenith’s Online Video Forecasts 2018 report, which looks at video content and advertising in 59 markets. The report will post to Zenith’s site later this week.