Global advertising revenue from online video doubled to $11.2 billion between 2011 and 2014, and will jump to $13.8 billion in 2015, according to findings released by international market research and tech consultancy IHS Technology and Irish-based video analytics specialists Vidiro.
The IHS and Vidiro white paper found linear TV viewing declined by seven minutes per person in 2013. Conversely, online video services have grown significantly in the past two years, with YouTube showing a 50% growth in hours watched, year over year, and the advertising dollars are following.
Researchers forecast that by 2017, online video advertising revenues will reach $19 billion, with TV advertising budgets beginning to experience cannibalization by digital in some markets. TV will make up only 28% of total advertising in Western Europe at that time, the report predicts.
YouTube leads the pack in the online video space with $4.2 billion in advertising revenue in 2014, up double digits from 2013. But, according to the report, Facebook has established one of the strongest video strategies, both in terms of content and monetization, by working closely with premium publishers to distribute content and is expanding its video ad solutions to provide strong format and targeting capabilities. Facebook launched a new video strategy last year, surpassing YouTube as the leader in online video impressions.