It’s up and to the right for Web video and video advertising according to The Pew Research Center’s State of the News Media 2013 report, released last week.
Advertisers spent $2.9 billion on video advertising in 2012, a 47 percent increase over the previous year. This was “by far the highest growth rate of all digital ad segments” according to the report.
That 46 percent increase in online video advertising is the biggest jump of any ad category. The second closest, with a 39 percent increase, is sponsorship.
From Pew Research Center’s State of the Media 2013 report.
“Video is now the second-largest ad segment within display, and it is expected to close the gap with banner ads over the next few years,” the report said.
The report references eMarketer in saying video advertising will comprise 15 percent of digital ad spend by 2016. Currently it comprises 8 percent of the digital ad market.
Within video advertising, spend on mobile devices went from about $83 million in 2011 to $1.19 billion last year, a huge increase of 1,388 percent. Total mobile advertising, which includes everything from video to display ads, went up 80 percent to $2.6 billion in 2012.
It’s no wonder mobile video advertising is exploding, with 38% of respondents to a recent Pew study saying they watch video on a mobile device. Twelve percent of that 38 percent said they watched mobile video daily.
And as tablet use grows, it’s likely so will mobile video viewing, and not just because more people will own tablets. Pew found that over half of tablet owners also watch videos on their smartphones, “compared to just 20% of smartphone owners who said the same.”
Again citing eMarketer, Pew’s report says mobile advertising will reach 10 percent of the mobile market by 2016, constituting $1.2 billion in ad spend.
The growth in video advertising is causing news organizations, the focus of Pew’s report, to ramp up their video offerings. Many of these offerings, from companies like ABC News and The Washington Post, sell pre-roll ads (ads you see at the beginning of a video), and are launched in partnership with tech companies like YouTube or Yahoo.
All in all Pew’s State of the News Media 2013 report highlighted the phenomenal growth of video advertising, and hinted toward an ad world in which video will be increasingly mobile.
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