Global consumers will spend an average of 67 minutes a day watching online video* this year, up from 56 minutes last year, according to Zenith’s Online Video Forecasts 2018, published this week.
“By 2020 we expect the average person to spend 84 minutes a day watching videos online,” says Jonathan Barnard, head of forecasting and director of global intelligence at Zenith. “Global online video consumption grew by 11 minutes a day in 2017, and we expect it to grow by an average of 9 minutes a day each year to 2020.”
“It accounts for almost all the growth in total internet use, and is growing faster than media consumption overall, so it is taking consumption time from traditional media.”
Although some of this extra viewing is going to non-commercial platforms such as Amazon Prime and Netflix, plenty of it is going to commercial platforms, so the supply of commercial audiences is rising rapidly, the forecast notes.
The rapid rise in video viewing makes online video the world fastest-growing advertising format, creating new strategic and creative opportunities.
According to the report, by 2020, China will have the keenest viewers, with the average person spending 105 minutes a day watching online video, followed by Russia (102 minutes) and the UK (101 minutes). This rapid rise in consumption is leading to a shift in the way brands plan campaigns across both television and online video.
Online video advertising is still only a fraction of the size of television advertising, but because television is stuck at 0% to 2% annual growth, this fraction is rising rapidly, the report observes. The online video ad market was 10% of the size of the television ad market in 2015, and 14% in 2017. By 2020 Zenith expects online video ad spend to be 23% of the size of television ad spend.
“Online video is driving growth in global media consumption, as smartphones with high-speed data connections make high-quality video available to people on the move, and smart TV sets give viewers unparalleled choice in the living room,” said Jonathan.
“The rapid rise in video viewing makes online video the world fastest-growing advertising format, creating new strategic and creative opportunities. Brands that do not currently have a strategy for online video need to think about getting one.”
For publishers, Zenith’s report provides further proof, as if any was needed, that brand advertisers will be increasingly looking at online video opportunities as well as static display formats.
This is the fourth edition of Zenith’s annual Online Video Forecasts report. It contains historical data and forecasts of online video consumption and advertising, together with commentaries on the development of individual markets by local experts. This year’s edition covers 59 key markets.
* Online video refers to all video content viewed over an internet connection, including broadcaster-owned platforms such as Hulu, ‘over-the-top’ subscription services like Netflix, video-sharing sites, e.g. YouTube, and videos viewed on social media.