Zenith Media just released its latest ad spending forecast, revising previous estimates of worldwide advertiser expenditures on various ad formats for 2017. One highlight from the new report is Zenith’s prediction of an 18% jump in US spending on video. The estimate is similar to the video ad forecast figures included in the IAB’s recently released Guide to Digital Video Advertising. What’s contributing to the continued strong investment in video ads among US marketers? Here are three key factors.
Consumer engagement and time spent with video continues to climb
As revealed in Extreme Reach’s proprietary Q2 2017 video benchmark data, the amount of time US consumers spend watching video ads is on the rise. The average time spent with video ads in Q2 2017 grew by 19% over the same period in 2016 and the completion rate of video ads also increased by 20% in that period. This growing engagement with video ads is a good sign for advertisers, who seem to be boosting their spending on video ads as the ROI keeps climbing.
Mobile video is creating more inventory and new opportunities
The ubiquity of mobile devices and especially the upward trend of consumer time spent with mobile video, is another factor helping boost the fortunes for video advertising more broadly. We took a look at the growth of mobile advertising back in June, noting that more than half of all digital ad dollars last year were allocated to the format. New opportunities like vertical video are a draw for marketers, as are interactive features that respond to gestures like swiping and zooming.
Social platforms are boosting their video offerings
Everywhere you look, the world’s biggest social platforms like Facebook, Twitter, and Snap are doubling down on creation of their own video content and new video advertising opportunities. So far, advertising analysts and marketers seem to like what they see. “Online video and social media advertising are growing the fastest because that’s where consumer attention is moving to, and where advertisers can reach otherwise hard-to-find audiences with great results,” said Jonathan Barnard, Zenith’s head of forecasting and director of global intelligence in an interview related to the company’s new forecast. “If that’s where your target audience is, you need to be there, too.”
It’s been an incredible year thus far for video advertising. Thanks to an expanding collection of video ad inventory, innovative new video ad formats, and increasing consumer engagement, advertiser investment continues to grow. For those marketers still uncertain about whether to invest in video, the answer increasingly seems to be a resounding “yes.”