Mobile video ad spend is set to account for 75% of all digital video ad expenditure by 2023 according to new research by Frost & Sullivan, the market research analysts.
According to the latest data, video ads will account for over 20% of all digital ad spending.
“Mobile video ad spending, in particular, will account for 75 percent of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop,” added Aravindh Vanchesan, Digital Transformation Industry Analyst at Frost & Sullivan.
In part, rise in video is driven by rapid consumption of mobile video by smartphone owners worldwide.
In addition, the experts expect online video ad solutions to become a $30 billion market, reaching $120 billion by 2023.
“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,” added Vanchesan. “Besides, as the competition continues to intensify, there will be a need to prioritize market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities.”
The findings align with those by the Interactive Advertising Bureau (IAB) which predicts that half of advertisers will increase their mobile and digital video spend in the near future. In 2018 alone, advertisers were expected to spend over $10 million on average on mobile and digital video adverts, representing a 50% increase from 2016.