Mobile will by far be the biggest driver of digital-video ad spend over the next few years. Mobile video ad revenue will grow more than 3x faster than desktop through 2020.
Why is digital video growing so quickly? Consider:
- Conventional display advertising is shifting to video.
- Media time is migrating to mobile
- Video is a familiar and effective format for brand advertising
According to reports and estimations, the rise of digital video and find that overall US digital-video advertising revenue will top nearly $5 billion this year, and grow at a five-year compound annual growth rate (CAGR) of 21.9%. Total revenue will reach $13.3 billion by year-end 2020.
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Some Key Insights:
- Video is quickly replacing static display advertising on desktop.Video will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year.
- Video ads perform better than standard display ad units. In-stream video ads, including ads that play at the start, during, and after video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google’s Rich Media Gallery.
- Video’s premium status within digital is reflected in the format’s high prices. Video ads tend to cost significantly more (e.g., 2x or 3x) than non-video ad units on premium publishers like Vice and Instagram.
- Facebook, Instagram, and Twitter have all introduced new digital-video ad products. Social video offers several major advantages from an advertiser perspective, including huge built-in mobile audiences, advanced targeting, and native-style ad units.
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