Digital video advertising spend is seeing record growth
A study conducted by eMarketer.com projects that ad spending on digital video will see substantial growth over the next few years while ad spending on TV will decrease for the first time since 2008. While the earlier decrease in TV ad spend was likely linked to the 2008 financial crisis, the current trend seems to indicate a true shift toward digital video as an advertising channel.
VIEWER TIME SPENT ON VIDEO PLATFORMS IS ALSO ON THE UPSWING WHILE TIME SPENT ON TV IS DECREASING
This story mirrors the ad spending trends cited earlier. The number of TV viewers in the US is also expected to fall under 90% of the population for the first time in a decade. That 90% is also spending less time watching TV with a prediction of just 3 hours and 42 minutes spent per day on average by the end of 2019 (down 28 minutes from 2015).
IT’S TIME FOR ADVERTISERS TO SHIFT THEIR TV ADVERTISING BUDGET TO DIGITAL VIDEO
With a decrease in overall TV viewers and time spent watching live television, there’s never been a better time for brands and retailers to think about transferring some of their TV advertising budget to digital video.
Unsurprisingly, Generation Z and Millenials spend more time watching digital video than live TV, and even Gen X splits their time almost evenly between the two. Depending on your target market, this could make the shift to digital video even more vital. Without utilizing digital video, it will become more difficult to reach younger generations as consumers continue to cut the cable or grow up without live TV as a staple in their household.
YOUTUBE IS PROVIDING A MASSIVE OPPORTUNITY FOR ADVERTISERS
One channel, in particular, YouTube, is reaping the benefits of this migration from live TV to digital video. Just recently, YouTube reported a staggering 1.8 billion logged-in viewers each month, up from 1.5 billion logged-in viewers in mid-2017.