Marketing expenditure on video ads will reach $3.6 billion in the US and €1.2 billion in Europe by the end of 2013, according to two new Forrester reports on the state of online video advertising. New data in the reports based on a survey of more than 33,000 US and 15,000 European online adults shows consumers are watching more video online and using more devices to access content than ever before. In fact, 68% of online adults in the US have watched some form of online video in the past month, while in Europe video is the most popular form of entertainment, with 71% having viewed at least one video in the past month. As such, Forrester believes marketers can no longer afford to treat the video ad platform as an afterthought and must seek improvement in the role of online video as a standalone component of the media mix.
“Over the past few years, we’ve seen online video advertising grow into a multibillion-dollar industry, with marketers and publishers increasingly stressing the parallel between TV and online video ads,” writes Researcher James McDavid in the new research. “Forrester believes that the next step in the evolution of online video is to break out of this mold and build on the fundamental strength it possesses by being a digital interactive environment for brands to operate in.”
Highlights from the US report include:
- Watching online video on desktop computers remains a popular way to access video content, with 33% of US online adults who use a PC streaming video at least weekly. 35% and 21% use a tablet and smartphone respectively to do so.
- Among the most popular types of video content online are full-length TV shows and movies, with 26% and 22%, respectively accessing this content monthly. Each week, 23% of US online adults view clips or trailers from movies, while 12% view clips from current TV shows.
Highlights from the EU report include:
- The most popular form of video is short clips, music videos, and trailers. However, videos posted on social platforms, especially on Facebook and YouTube, attract the largest share of views: more than a third (39%) of European consumers have viewed these types of videos in the past month.
- PCs and tablets are the devices most frequently used for watching video online, with 33% and 30% watching on these respective devices at least weekly. But mobile still lags behind, with only 12% watching video on this device at least weekly.
To learn more about this research, visit the Marketing Leadership blog here.