Rise of mobile drives advertisers to invest $30bn in online video despite ongoing risks
- Written by ACN Newswire
These and other key findings are included in the latest monthly Global Ad Trends report focusing on online video advertising compiled by WARC, the international authority on advertising and media effectiveness.
Online to account for 17.5% of global video spend this year, at $30bn - most will go to social platforms
Online video advertising expenditure - inclusive of pre/mid/post roll, social and broadcaster VoD - is expected to rise 27.5% to reach $29.8bn this year. This compares to an anticipated rise of 1.1% for linear TV, which equates to $140.2bn - on a par with the level recorded in 2010. Consequently, online video is set to account for 17.5% of the total $170bn spent on video advertising worldwide this year, up from a share of just 1.3% in 2010.
Rates vary between markets. Online's share in the US, the largest video market by far, is expected to rise to 19.3% this year, at $15.3bn. China's online share is projected to rise to 24.7% ($6.5bn) this year, while in the UK online video is expected to account for 38.2% ($2.6bn) of all video adspend.
Most of this money is going to social platforms such as YouTube and Facebook. UK data from the AA/WARC Expenditure Report show that of the GBP1.6bn spent on online video advertising last year, 81.2% (GBP1.3bn) was paid to social platforms (up from a share of 55.4% in 2014).
Online video is set to account for almost half of daily internet consumption, with mobile driving growth
Online video consumption - the majority of which is via mobile devices - is rising steadily worldwide. Projections show consumption will rise to 84.1 minutes per day in 2020, up 26.6% from a projected 66.5 minutes this year. Of this, 62.3% of the time will be spent watching via mobile devices (compared to 60.7% currently).
Comparing these figures to wider media consumption data shows that online video's share of daily consumption is rising across the board. It is expected to reach almost half (46.7%) of all internet usage and 17.1% of total daily media consumption by 2020.
One in ten video ads poses a risk to brands, and video is a prime target for fraud
Data for the second half of 2017 show that at least one in ten online video ads poses a risk of negative adjacency to brands.
For mobile, the content types that pose the most frequent brand risk are violence, and offensive language & controversial news regardless of whether the ad is bought programmatically or publisher direct.
Fraud also poses a risk to online video advertising, especially if the ad is not optimised against such activity. A recent study by Guardian US and Google found that as much as 78% of video spend is susceptible to fraud if the publisher does not employ the ads.txt script within their website.
Summing up, James McDonald, Data Editor, WARC, says: "The vast and continuing increase in video consumption via mobile devices has directed ad dollars to social platforms, despite the well documented and persistent risks around negative adjacency and ad fraud.
"Facebook hopes to regain the initiative with its Watch platform, which is being positioned as a safe brand environment offering advanced audience segmentation."
Global media analysis: A round-up of online video17.1% online video's share of all daily media consumption by 202017.5% online's share of global video advertising spend this year46.7% online's share of total daily video consumption by 202058.0% marketers in EMEA intending to use mobile video in their campaigns this year81.2% online video spend directed towards social platforms in the UK last year84.0% influencers' share of YouTube views in Q1 2018Other new key media intelligence on WARC DataAT&T aims to get personal after $1.6bn AppNexus acquisitionBranded content set to become core to mobile marketingPrint display ad revenue rises for the first time in seven yearsGlobal Ad Trends is part of WARC Data, a dedicated online service featuring current advertising benchmarks, data points, ad trends and user-generated expanded databases.
Aimed at media and brand owners, market analysts, media, advertising and research agencies as well as academics, WARC Data provides current advertising and media information, hard facts and figures - essential market intelligence for ad industry related business, strategy and planning required in any decision making process.
WARC Data is available by subscription only. For more information visit www.warc.com/data[1].
About WARC
- Your global authority on advertising and media effectiveness
warc.com is an online service offering advertising best practice, evidence, insights and data from the world's leading brands. WARC helps clients grow their businesses by using proven approaches to maximise advertising effectiveness. WARC's clients include the world's largest advertising and media agencies, research companies, advertisers, market analysts and academics.
WARC runs two global and two regional case study competitions: WARC Awards, WARC Media Awards, WARC Prize for Asian Strategy and WARC Prize for MENA Strategy.
WARC publishes three global rankings of advertising excellence: Gunn 100 (creativity), WARC 100 (effectiveness), Gunn Media 100 (media innovation) and publishes leading journals including Admap, Market Leader, the Journal of Advertising Research and the International Journal of the Market Research Society. In addition to its own content, WARC features advertising case studies and best practices from more than 50 respected industry sources, including ARF, Effies, Cannes Lions, ESOMAR and IPA.
Founded in 1985, WARC has offices in the UK, U.S. and Singapore. In June 2018 WARC was acquired by Ascential plc, the global specialist information company.
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Amanda Benfell PR Manager +44 20 7467 8125 [email protected][2] Source: WARC[3] Topic: Press release summarySectors: Media, Advertising[4][5] http://www.acnnewswire.com From the Asia Corporate News Network
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References
- ^ www.warc.com/data (www.warc.com)
- ^ [email protected] (www.acnnewswire.com)
- ^ WARC (www.warc.com)
- ^ Media (www.acnnewswire.com)
- ^ Advertising (www.acnnewswire.com)
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