Mobile video ad spending will account for 75% of all digital video ad investments by 2023, while the targetability, personalisation capabilities, and interactivity offered by online video advertising solutions is expected to drive the $30bn market to $120bn by 2023.
The explosion of over-the-top (OTT) and user-generated digital video content in the current multi-screen environment is creating strong demand for monetisation technologies among both content owners and advertisers, according to Frost & Sullivans recent analysis in its Global Online Video Advertising Market, Forecast to 2023. The targetability, personalisation capabilities, and interactivity offered by online video advertising solutions is expected to drive the $30 billion market toward $120 billion by 2023.
Speaking about the findings, Aravindh Vanchesan, Digital Transformation Industry Analyst at Frost & Sullivan said: “By the end of the forecast period, video ads are forecast to account for more than 20% of all digital ad spending. Mobile video ad spending, in particular, will account for 75% of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop.”
The analysis presents the market trends, drivers and restraints, and regional analyses of North America and Latin America (NALA); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC) markets. It also studies the competitive landscape and provides the market share analysis of leading market participants for 2017.
The rapidly expanding viewer pool of live/linear and video-on-demand (VOD) content such as sports and special events has spawned a large market for seamless ad delivery Dynamic Ad Insertion (DAI) that is consistent across devices and platforms. Cloud-powered server-side ad insertion (SSAI) will emerge the dominant technology as it meets stringent monetisation and user experience demands.
“While ad insertion technologies are finding high uptake among advertisers, ad blockers also are becoming common on both desktop and mobile platforms. This is resulting in lower completion rates and lost revenue opportunities,” noted Vanchesan.
Besides, as the competition continues to intensify, there will be a need to prioritise market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities,” he concludes.