Online video to lead 4.4 per cent growth in global adspend in 2015
The company says adspend will then slow down slightly, growing 4.8 per cent in 2017 and has reduced its forecasts for adspend growth in 2015 and 2016 by 0.5 and 0.3 percentage points respectively, due primarily to the deepening recession in Russia, Ukraine and Belarus, and a slowdown in growth in China. Its forecasts for each year are above the average
annual growth rate for the last 20 years (4.2 per cent), and well ahead of the average for the last 10 years (2.8 per cent).
The fastest‐growing advertising category is online video, thanks to the explosion of mobile video consumption and the spread of internet‐connected devices, such as smart TVs and games consoles.
Smartphones have bigger and better displays, and transmission technologies like 4G are improving connection speeds, making it possible for consumers to watch high‐quality video content wherever and whenever they choose. According to the Ooyala Global Video Index, mobile devices accounted for 34 per cent of all online video plays in Q4 2014, up from 17 per cent a year earlier.
Several other factors are contributing to online video growth: measurement agencies are investing in research to track consumers’ exposure to video ads across desktop computers, tablets and television screens; the main social media platforms are all developing their video products; and more online video is being sold by programmatic buying, providing advertisers with more control and better value. ZenithOptimedia estimates that global online video grew 34 per cent to $10.9bn in 2014, and it forecasts it to grow at an average of 29 per cent per year to reach $23.3bn in 2017.
Read ZenithOptimedia’s Advertising Expenditure Forecasts executive summary.
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