According to a recent report, by the end of 2015, Internet users will be spending about an hour a day watching online video, and more than 50% of that will be spent on mobile devices, which are expected to become the dominant source of online video within the next year. According to forecasts, television will peak in 2015, before starting to fall for the first time.
Apparently, the change of trend will be due to the proliferation of smartphones and the improvement in data connections. The industry experts also say that it is also a matter of supply, because today broadcasters know that Internet business is very promising, with young people spending time on mobile devices. This is why advertisers are seeking to concentrate on them.
For example, in the United Kingdom many people watch video online, but this segment still accounts for relatively little of the UK’s online advertising spend due to the strength of iPlayer, which is walled off from advertising. According to the recent report, which covered 40 countries, the average amount of time per day spent on watching online videos will increase by 23% this year and by a further 20% next year. The report also predicted increase in video consumption on mobile devices by 43.9% this year and 35% next year, from less than 40 minutes a day last year.
As for the audience of traditional, linear television, it is forecasted to rise 3% this year, but then shrink by 2% in 2016 and by 1% in 2017. In the meantime, the US will be the largest advertising market for online video, accounting for an $8.5bn spend this year – more than half of the global total. However, its share is expected to fall to less than 50% by 2017.
According to statistics provided by Google, 50% of all video requests on YouTube are now from mobile devices. Today, Facebook is also pushing hard into video, which influences user behavior, as Facebook’s users convert to mobile. While broadcast television viewing is falling, it still accounts for the vast majority of overall viewing. Indeed, many viewers, particularly the older population, prefer to watch programs on their living-room TV. However, the industry should not forget that people are spending more and more time watching online video, where mobile devices become increasingly dominant.