The average amount of time people will spend consuming online video each day will increase by 23.3% in 2015 and by a further 19.8% in 2016, according to the Online Video Forecasts. The rapid rise of smartphone and tablet penetration across the globe will influence on the growth of Video consumption on mobile devices by 43.9% in 2015 and 34.8% in 2016. Meanwhile, video consumption on non-mobile devices will continue to grow, though at more moderate rates, increasing by 9.5% in 2015 and 6.5% in 2016.
the amount of time people spend watching linear TV has been in slow decline for several years. Linear TV viewing figures will peak this year, and will start to decline for the first time in 2016. Meanwhile, the quantity and quality of content available online, both from short-form platforms like YouTube and long-form platforms like Netflix will keep increasing.
It means that global online video ad-spend is also rising “rapidly”. The market had an 8.8 per cent share of the total internet adspend in 2012. Last year this rose to 10.2 per cent and it is predicted to increase by 12.8 per cent.
Online video is also the fastest growing sector in internet advertising. The report forecast it to grow by 28.9 per cent to $16.1 billion (£10.3 billion) globally in 2015, 22.5 per cent in 2016 and 19.7 per cent in 2017 to $23.7 billion.
Mark Waugh, the global managing director at Newcast, the branded content arm at ZenithOptimedia, said: “Consumers all around the world are rapidly embracing online video, because it offers them a near limitless array of engrossing content. Some of the keenest users are the young, affluent viewers who are hardest to reach on television.”
“Brands are finding online video a particularly effective way to reach these valuable audiences, not just with advertising, but also with branded content; content that can inform or entertain consumers in a deeper and richer way than is possible with short, interruptive ads.”