Dive Brief:
- Zenith’s third annual Online Video Forecasts 2017 report predicts online video views will increase based on mobile performance over the next couple of years, per a news post from the ROI agency.
- Overall online video viewing will increase 20% this year to a global average of 47.4 minutes daily. Broken down by device, mobile views will increase 35% while fixed devices — including desktops, laptops and smart TVs — will only increase 2%. The report also predicts 2017 will be the peak year for fixed device views while mobile is expected to increase 25% next year and 29% in 2019. The increases in mobile views are attributed to the spread in adoption of mobile devices, better displays and faster data connections. By 2019, mobile will account for 72% of all online video views compared to 61% this year.
- Online video ad spending is expected to rise 23% this year, and will become mobile-first next year as spending moves from fixed devices to mobile. This year fixed devices are expected to account for $15.2 billion in online video ad spend while mobile will bring in $12 billion. Next year, fixed devices will remain largely the same at $15 billion, but the mobile market is predicted to grow to $18 billion.
Dive Insight:
Marketers have already begun to understand the power and value in video content on mobile devices and Zenith’s report is the latest development to validate the potential of online video on mobile. The main takeaway from the report for marketers is any video production and advertising strategy should prioritize the mobile experience given its growing importance in video marketing.
The challenge for marketers is uncovering the best ways to engage mobile users through video, an area where best practices are still evolving. Digital platforms including YouTube and Facebook are encouraging marketers’ creativity with expanded video formats like 360-degree video and live video while video ads that include interactive elements turning an otherwise passive experience into something more engaging for the viewer. The jury is still out the potential for short video content under 10 seconds, with Google, P&G and others insisting this approach works great on mobile even as agency creatives balk at the idea of compressing stories so drastically.
The Zenith news post pointed out that online video and more traditional linear TV work together and complement each other’s strong suit. More specifically, TV ads are effective for brand building while online video engages with an audience as individuals rather than demographics in a high-engagement environment, said Vittorio Bonori, Zenith’s global brand president.
