Global investments directed at advertising in linear TV have generally decreased in the recent five years but linear TV still remains the key ad medium taking into consideration other video formats. Its share is 75%.
Out of this sum, online video applying an ad-supported model (AVOD), such as YouTube, accounts for about a quarter of global advertising spend. Online video results also include advertising investments intended for broadcaster video platforms (BVOD). This is shown by WARC data.
WARC researchers note that investments in linear TV were negatively impacted by the pandemic namely last year, before that they had declined on a five-year average from 2% to 6% depending on a global region.
Development of global advertising spend in linear TV and online video (USD billions), source: WARC
WARC also refers to the prediction of Digital TV Research, according to which the income of video online platforms (AVOD) will double to USD 53.5 billion by 2025. The key driver in this group is considered to be YouTube. However, an important role in watching YouTube is played by the TV screen. A quarter of all YouTube time spent is attributable to connected TV. The market size of paid video content (SVOD, such as Netflix) is expected to grow by about 60% by 2025.
Estimated development of advertising revenue of AVOD and SVOD by 2025 (USD billions), source: Digital TV Research
The outbreak of the pandemic last year supported the growth of viewing content from streaming video services. The video time spent was growing in all global regions last year. In terms of devices, streaming content is watched predominantly on a “large screen”. In fact, the TV screen (connected TV, smart TV) accounts for 75% of all streaming video content.
Source: mediaguru.cz
