Video still engages like few other formats. According to a Brightcove study, video viewing influences consumer purchasing behavior among 76% of adults in the US. And 2/3 of millennials engaged with a brand after watching a video on social media.
But advertising dollars tend to follow the eyeballs they seek and a number of studies show that audiences continue to shift more of their time AWAY from traditional linear TV and towards other digital and streaming platforms.
– According to VidMob, TV viewing among A18-34 dropped 12% in one year and over 50% in a five-year lookback window.
– Millennials and Gen Zers spend 54% of their video time each day on social apps with YouTube making up almost half of that.
While it continues to garner great reach, linear TV ad spend is considered to have reached its peak. It has dropped below 30% of total ad spending and is projected to fall below 25% of total ad spending by 2022. TV still has great mass reach but eMarketer projects pay-TV households to drop from 86.5M in 2019 to 79.4M in 2021. Over 21.9M households are projected to cut their cords by 2021.
Spend is shifting dramatically to social video and ad-supported streaming services. Ad spending is forecast to reach $14.9B in social video ads by 2021 still heavily dominated by Facebook/IG and YouTube. More linear TV content will make its way to ad-supported digital services. eMarketer projects social video ad spending to surge 62% by 2023.
YouTube is the most popular digital video platform. 90% of US viewers over age 15 say they watch videos on YouTube. By comparison, 60% say Facebook and 35% IG.
Expect continued seismic shifts in the video landscape.
Working Media Group is a strategic, data-driven media agency that helps demanding clients successfully build knowledge and drive business results.