Video is no longer just another media format, it has become the internet itself: from streaming and social sharing, to video platforms and advertising, all the trends are booming, as the latest research confirms
Digital video is changing the way we consume and perceive information, as it unfolds before us in real time, allowing us to actively participate, share and even modify this experience.
The latest findings from Cisco’s Visual Networking Index undoubtedly confirm video’s omnipresence: by 2020, IP video traffic will comprise 82% of all consumer internet traffic (compared to 70% in 2015). Try to picture this: it would take more than 5 million years for a consumer to view the amount of video that will cross global IP networks each month in 2020!
When it comes to digital platforms YouTube maintains its dominance in most countries, with some exceptions, such as China, according to the eMarketers Global Video Platforms Report. The device choice depends on the content type, smaller screens dominate for short-form videos, though smartphones are also being used for longer-form video viewing, particularly in parts of the Asia-Pacific region.
One of the fastest growing segments within the digital video market is subscription video-on-demand, strongly influence by expansion of Netflix. The future of broadcast media in a mobile age will be one of the most important topics at Mobile World Congress, to be held next week in Barcelona, where Netflix CEO will be one of the keynote speakers.
Social streaming is also booming with stories on Instagram and Facebook, Snapchat, Periscope and Facebook’s Live, contributing to the fact that viewers today are spending more time watching digital video than ever before. Time spent watching traditional TV has been decreasing steadily since 2012, which isn’t surprising, given that more and more viewers are watching their favorite shows through connected TV devices or streaming. One curious fact: the silent auto play videos are also hitting big volume – 85% of Facebook videos are now watched entirely without sound.
Indeed, the video took off and it took over the market by storm – it takes just a quick look at the digital advertising market to get the grasp of it. According to 2016 IAB Video Ad Spend Study:
- Ad spending on original digital video programming increased 114% since 2014
- Marketers and Advertisers are spending on average more than $10 million annually on Digital Video, representing an 85% increase from 2 years ago
- Video represents an increasing share of Digital/Mobile Ad Spending, with growth driven by a substantial increase in Mobile Video allocations
- Programmatic Video buying seeing broad adoption and steady growth – accounting for 41% of all Digital Video dollars spent, representing 58% growth from over the last 2 years
As the number of digital video viewers arrives to 2,15 billion in 2017 we have to admit that the video is the digital medium of the future. Some of the challenges will be surely related to the innovation, multiplatform, and the content quality, and it will be very interesting to see the future developments in a this competitive global landscape with over 1000 different over-the-top services.