Marketing spend on video ads set to top $3.6 billion in the US and €1.2 billion in Europe before the year is out
Marketing spend on video ads is set to reach $3.6 billion in the US and €1.2 billion in Europe by the end of 2013, according to new reports on the state of online video advertising from Forrester.
Based on a survey of more than 33,000 US and 15,000 European online adults, the new data shows that consumers are now watching more video online and using more devices than ever before to access content.
More than two thirds (68 per cent) of online adults in the US have watched some form of online video in the last month, and in Europe video is the most popular form of entertainment for online adults with 71 per cent watching at least one video in the past month.
Writing in his blog about the new research, Forrester analyst James McDavid, said: “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. Forrester believes that the next step in the evolution of online video is to break out of this mould and build on the fundamental strength it possesses by being a digital interactive environment for brands to operate in.”
In Europe short clips, music videos and trailers were found to be the most popular form of online video, with videos posted on social media platforms such as Facebook and YouTube gaining the largest share of views, with more than a third (39 per cent) of consumers watching video in this format in the last month.
PC and tablet are the most frequently used devices for watching online video in Europe, with 33 per cent and 30 per cent watching via these devices respectively at least weekly. Surprisingly only 12 per cent said they watched video on their mobile device at least once a week.
In the US desktop also remained a popular means of accessing online video, with one third (33 per cent) of US online adults streaming video via PC at least once a week. 35 per cent and 21 per cent of US online adults said they used a tablet or smartphone device respectively to do so.
Full length TV shows and movies were amongst the most popular online video content watched by adults in the US, accessed by 26 per cent and 22 per cent of respondents respectively. Almost a quarter (23 per cent) watched clips or trailers from movies once a week, with 12 per cent watching clips from current TV shows.