So, whom do you know who doesn’t, at least occasionally, watch online video? After you call them in from the cave and introduce them to, oh, maybe Hulu and ABC.com, take a look at the findings from two reports for some insight into what it appears Madison Avenue finally is figuring out: online video is hot, and online video advertising is poised for major growth.
On Monday, ZenithOptimedia released it latest Global Advertising Forecast, saying it expected overall ad expenditures to experience somewhat mild growth of 3.9 percent in 2013, 5 percent in 2014 and 5.6 percent in 2015. For 2013, that’s about $518 billion in revenue globally. Of that, the Internet, ZenithOptimedia said, will remain the biggest contributor of new ad dollars to the global market, about 59 percent through 2015.
What’s more interesting is that the firm’s forecasts the share of ad spend for TV to likely peak in 2013 at 40.4 percent. By 2015, they’ll slip to 40.2 percent, with Internet advertising reaching 23.4 percent and newspaper advertising shrinking to 15.8 percent. 2015 will be the first time Internet ad revenues topped newspaper ad revenues. In 2012, the Internet share was 18 percent with newspapers at 18.9 percent. The bulk of the Internet’s gain has, and is expected to continue to, come at the expense of newspapers over the past several years.
ZenithOptimedia said U.S. ad spend overall was $161.2 billion in 2012, the highest in the world, and said its forecast $182.4 billion in 2015 would be more than three times that of runner up Japan, with $53.3 billion.
BrightRoll, meanwhile, this morning released its 2013 US Video Ad Report, which contends that video is leading a change in the digital ecosystem. The report, based on survey responses from 150 ad execs, showed that the number of video ads served in 2013 increased 64 percent over the past year, a trend it said would likely continue.
ComScore this month said 85 percent of the U.S. Internet audience viewed online video in March, with video ads accounting for 25 percent of all videos viewed.
Much of the growth of online video advertising, BrightRoll said, could be attributed to technologies that make it easier to plan and target campaigns. But a more important contributor to growth may be improvements in technology that allow more accurate measurement of audience views, helping advertisers to more accurately assess the impact of campaigns. BrightRoll said its survey suggested that running a schedule of ads on TV and online video was a potent combination, with 29 percent of viewers who were exposed to both being able to recall the message, compared to 19 percent that viewed the TV ads alone, a 53 percent increase in message performance.
Download a full copy of BrightRoll’s 2013 US Video Advertising Report.
