Media buying agency ZenithOptimedia is predicting big increases in online video consumption and the beginning of a decline in linear TV viewers.
Ad spending on opline video is also growing, the agency says. In the U.S., ad spending on online video will hit $8.5 billion in 2015.
Zenith expects the amount of time people spending with online video to increase 23.35 in 2015 and 19.8% in 2016.
The growth follows the fast adoption ad penetration of smart phones and tablets worldwide, according to the agency’s new Online Video Forecasts report.
Video consumption on mobile devices is expected to grown 43.9% in 2015 and 34.8% in 2016. Mobile devices will become the primary platforms for video consumptions by 2106 and hit 58.1% of consumption by 2017.
Meanwhile, ZenithOptimedia predicts that the number of people watching traditional television will peak this year. The first decline in the number of people watching linear TV will take place in 2016 with a 1.9% drop.
The drop in the number of people watching linear TV follows a decline in the amount of time people spend watching linear TV, which has been falling for several years, the agency says.
Ad spending on online video will account for an eighth of total spending on the Internet, ZenithOptimedia says. Online video ad spending will grow 28.9% to $16.1 billion worldwide in 2015 and 22.5% in 2016. It will grow another 19.7% in 2017 to $23.7 billion.
Mark Waugh, Global Managing Director, of ZenithOptimedia’s branded content unit Newcast, said, “Consumers all around the world arerapidly embracing online video, because it offers them a near limitless array of engrossing content. Some of the keenest users are the young, affluent viewers who are hardest to reach on television. Brands are finding online video a particularly effective way to reach these valuable audiences, not just with advertising, but also with branded content; content that can inform or entertain consumers in a deeper and richer way than is possible with short, interruptive ads.”