Online video advertising expenditure is on the rise driven by mobile consumption according to a new report by WARC.
Digital video ad spend including pre-roll, mid-roll, post-roll, social and broadcasting VoD is predicted to increase 27.5% to $29.8 billion in 2018. Much of that ad spend is going toward social media platforms as 60% of daily video views occur on mobile via social media networks such as YouTube and Facebook.
Meanwhile, linear TV advertising will rise just 1.1% in 2018 whilst online video takes a larger chunk of the video ad market at 17.5% in 2018.
Ad market shares vary by country. In the UK, online video is predicted to account for 38.2% of all video ad spend, whilst it accounts for 24.7% in China and 19.3% in the US.
Interestingly, 81.2% of the £1.6 billion expenditure going to online video in 2017 went to social platforms (up 55.4% from 2014).
“The vast and continuing increase in video consumption via mobile devices has directed ad dollars to social platforms, despite the well-documented and persistent risks around negative adjacency and ad fraud,” said James McDonald, Data Editor, WARC.
A large number of video views are also coming from influencers which has led marketers to turn to them in order to help promote their brands.
However, one in ten online video ads may pose risks of negative adjacency to brands, whilst 78% of video ad spend is also susceptible to fraud according to Guardian US and Google research.