Online Video Advertising
This post first originally appeared in Videonuze.
Most media companies earn money from over-the-top video in one of two ways: through subscriptions or through ads. SVOD dollars are on the rise as services continue to sign up new users, and some analysts predict SVOD services will be able to raise their subscription rates as premium content becomes the norm.
U.S. programmatic TV ad spending is forecast to grow more than 14X between 2015 and 2018, reaching $4.43 billion compared to $310 million in 2015.
The forecast, from eMarketer, shows programmatic ad spend increasing from 0.5% of TV ad spending to 6% over the next three years. Programmatic is expected to total just over $710 million this year and $2.16 billion in 2017.
Global digital advertising spend across mobile, wearable and online devices will exceed $285 billion by 2020, an increase of 78% from an estimated $160 billion in 2016.
U.S. Internet ad revenues topped $15.9 billion in Q1 2016, a record, and more than a 20% increase over last year’s Q1 record-setting $13.2 billion. The increase is the sharpest Q1 spike in ad spending on the Internet in four years, according to a report from the Interactive Advertising Bureau’s (IAB) Internet Advertising Revenue Report conducted independently by PwC U.S.
Despite campaign spending during this election year and brand spending during Rio’s Summer Olympic Games, U.S. spending on paid media is expected to climb just 5%, with most of the gain coming through digital channels.
Online video revenue across Europe increased to €375 million ($422.8 million) in 2015 from €22 million ($24.8 million) in 2012, a jump of more than 1,600%. Much of that growth has been in the programmatic ad tech space, as an increasing number of advertisers turn to programmatic to help them expand their reach to more targeted audiences.
TV’s reign as the top destination for brand’s ad dollars is set to end in 2017, a new report says, as digital spending continues to soar.
And, according to eMarketer’s latest as spending forecast, the slide will continue through 2020 with digital taking an ever-increasing share.
TV ad spending in 2017 will total $72.01 billion, or 35.8% of total media ad spending in the U.S., with total digital ad spending expected to be $77.37 billion, or 38.4%.