Total mobile video revenue will rise to $25 billion, with advertising revenue accounting for 2/3 of the total value by 2021, as viewer numbers and usage continues to expand and rise around the world, according to new market research from Strategy Analytics.
Businesses will spend more to advertise on mobile device video delivery platforms in a bid to reach wider audiences. Strategy Analytics predicts that the number of mobile video viewers worldwide will more than double to 2 billion by year-end 2022, a 36 percent market penetration, the market research company highlights.
Catching up with fast growing mobile video consumption
Strategy Analytics divides the mobile video market based on business models in its ¨Global Mobile Video Forecast: 2010-2021¨ report those centered on generating revenues from sell-through, rental, subscription and advertising.
Wei Shi, Analyst, Wireless Media Strategies noted, “The strongest growth in mobile video revenue will come from advertising-funded content as advertisers look to catch up with the increasing quantity of video consumption. Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years.”
“The strongest growth in mobile video revenue will come from advertising-funded content as advertisers look to catch up with the increasing quantity of video consumption. Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years,” Wireless Media Strategies analyst Wei Shi was quoted.
Mobile device advertising rates have yet to keep pace with growth in user numbers and usage. Leading social media platform providers are increasingly making use of mobile video, but as a means to increase subscriber engagement as opposed to generating ad revenues, at least at present, Strategy Analytics notes.
“Despite growing video consumption on mobile devices, advertiser expenditure on mobile video has yet to catch-up with this growth,¨ Strategy Analytics Director Nitesh Patel elaborated.
¨Furthermore, new modes of mobile video services such as live streaming platforms like Periscope and Facebook Live are focused on building audience before revenue. Currently, social networks have launched live video streaming as a tool to increase user engagement and to extend the time spent by users while inside of social networks, but we expect direct monetization to follow.”
Image courtesy of flickr user Kirill Kniazev.
