Online videos are the next big thing. And video ADVs have consequently been growing, too. This is no surprise at all: as I explained in the post entitled “2017 is all about video advertising”, video advertising has become a real must for marketers wishing to achieve their business targets.
Several new data have been collected to support such theory and they are worth analyzing carefully. According to Cisco, by 2021 videos will account for 82% of the global internet traffic. This seems to be a reasonable forecast, especially considering the fact that last year it already reached 73%. Read it in Italian.
Moreover, live videos are an interesting phenomenon on their own. High definition live videos, broadcast by Facebook Live, Twitter or YouTube, have become more and more popular. Demand is growing as well as connectivity consumption. Which translates in about 25 exabyte – the equivalent of 25 billion gigabytes – to be used up within five years, i.e. 13% of the whole bandwidth consumption. We are talking about a huge increase compared, for instance, to 2016 1,6 exabyte, i.e. 3% of the global consumption. Here some data on the explosion of online video.
To get a complete picture of the investments in digital ADVs, we also need to add updated data concerning mobile videos. According to the Media Consumption Forecasts 2017 issued by Zenith, the on the go use of interned has reached a +44% per year from 2010 to 2016, and in 2019, i.e. in one year and a half time, it will account for 26% of the overall media consumption..
Meanwhile a survey issued by PwC – Global Entertainment & Media Outlook 2017-2021 has claimed that in 2016 online ADVs have finally exceeded the revenues from TV advertising with an amazing turnover of 190 billion dollars against 169 billion dollars of the traditional medium. In 2017 revenues from internet videos are expected to exceed those generated by Home Videos and by 2021 the global E&M market will be worth over $ 2.237 billion (+4,2% over last year).
The equation is obvious: more online videos mean more video advs. And these latter, embedded among live or recorded images, have turned into one of the main tools to be used by marketers, especially with reference to special contents to be created ad hoc for smartphones and tablets.
However, Italy is not keeping up with the rest of the world. According to data concerning Internet Media presented by the Osservatori Digital Innovation of the Politecnico di Milano, despite the fact that in 2016 users have devoted over 60% of the time spent using their smartphones surfing the net, mobile adv accounts for only 30% of the global online advertising. Tablets are not better: apps account for only 5% of online advertising, even though they have grown by 36% over 2015.
Consequently, we can say that 65% of Italian digital advertising is still desktop based.
It is worth pointing out that computers are getting less and less relevant with reference to the advertising market to the benefit of smartphones: last year, mobile adv has recorded a turnover of 706 million Euros, i.e. 54% more than in 2015.
It is about time that national marketers start taking this trend in serious consideration unless they want to be left behind.
What do you think about mobile adv? Tweet @agostinellialdo.
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