Digital ad spending is continuing its strong growth into the next decade. According to a recent eMarketer report, worldwide digital ad spending in 2019 will rise by 17.6% to US$333.25 billion. This puts the digital users at roughly half of the global ad market.
However, like every industry in the world, there are factors currently influencing the growth of the industry. These have evolved over time and are now providing a new set of growth factors for video. These include:
Omnichannel is a growth driver
As more brands continue to embrace the omnichannel approach, the case for the use of video continues to grow stronger.
From TVs to lock screens on your smartphones, we are seeing the the integration of video in your digital screen space. Though there has been some push back, it is likely the industry will continue to innovate and find ways to seamlessly provide a video experience for consumers through all their devices.
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The eventual upgrade to 5G
The movement towards 5G is happening, so we can expect there to be repercussions to the whole world – just like how 4G changed the world as well.
According to this McKinsey report, we are likely to see aggressive growth of 5G as the infrastructure starts to catch up with the demand. This will allow video advertisements to load faster and no longer be a barrier for certain market segments.
Changing data rules will disrupt video
With the introduction of new data regulations such as the GDPR, and a growing trend towards stronger data privacy regulations being adopted across the world, the use of video and adtech in general is changing.
It is likely that an increasing number of users will start to actively manage their personal data. Publishers and advertisers will need to adapt to this new reality in order to either survive or leverage upon it.
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Experience matters as video continues to grow
The demand for experiential ads has been around for a while and a segment of adtech is moving towards making this happen. Consumer demand has driven the industry in this direction and UX matters when it comes to advertisements, so we can expect the video adtech industry to continue to innovate in this area.
From Netflix’s Black Mirror: Bandersnatch to YouTube video’s being interactive, we are seeing the movement in real time when it comes to experiential video.