Internet video traffic will grow fourfold from 2016 to 2021

Global IP video traffic will grow threefold from 2016 to 2021, a CAGR (Compound Annual Growth Rate) of 26 percent. Internet video traffic will grow fourfold from 2016 to 2021, a CAGR of 31 percent.

Globally, there will be 4.6 billion total Internet users in 2021, up from 3.3 billion in 2016

42% of the world’s population, however, will still be without Internet access, suggesting this rate of growth could continue linearly as we enter the mid 2020s.

27.1 billion networked devices and connections by 2021

The number of devices connected to IP networks will be more than three
times the global population by 2021. There will be 3.5 networked devices
per capita by 2021, up from 2.3 networked devices per capita in 2016.

Broadband speeds will nearly double by 2021

By 2021, global fixed broadband speeds will reach 53 Mbps, up from 27.5 Mbps in 2016. Accompanying infrastructure will underlie the increased popularity of video as the preferred content format.

Internet users will be watching 3 trillion minutes of video per month by 2021

It would take an individual more than 5 million years to watch the amount of video that will cross global IP networks each month in 2021. Every second, a million minutes of video content will cross the network by 2021.

An explosion of online video could triple bandwidth consumption by 2021

By 2021, short-form video like YouTube is expected to represent 26% of all video traffic on the internet. Long-form video, like Netflix, is forecast to represent a whopping 57% of video traffic. Although YouTube is becoming increasingly long-form itself.

By 2020 the average person will be spending 84 minutes a day watching videos online.

China will be clocking up the most minutes-per-day, spending 105 minutes watching online video. Russia come second with 102 minutes per day. And the UK come in third with 101 minutes.

Online video adspend will reach US$43bn in 2020

Online video adspend grew 20% in 2017, to reach US$27bn. Zenith forecast 19% growth in 2018 ($32bn), and an average of 17% annual growth to 2020, when online video adspend will reach US$43bn.

Video’s share of online display advertising will account for 30% in 2020.

Video’s share of online display advertising is rising steadily: it accounted for 27% of display adspend in 2017. Zenith has forecast for it to account for 30% in 2020.

Out-stream video is rapidly becoming the dominant form of online video advertising.

Online video advertising began by emulating television advertising, with most ads appearing within other video content that the viewers were really interested in as interruptive ‘in-stream’ ads. In the UK, however, it overtook in-stream advertising to account for 56% of online video adspend in 2017.

"Online video is driving growth in global media consumption."

Jonathan Barnard, Zenith’s Head of Forecasting and Director of Global Intelligence, also said, “Online video is driving growth in global media consumption, as smartphones with high-speed data connections make high-quality video available to people on the move, and smart TV sets give viewers unparalleled choice in the living room.”

By 2020 we expect online video adspend to be 23% of the size of television adspend.

The online video ad market was 10% of the size of the television ad market in 2015, and 14% in 2017. By 2020, Zenith expects online video adspend to be 23% of the size of television adspend.

Advertisers are expected to spend $60 billion more on internet than TV advertising in 2019.

Online advertisers are expected to outspend TV advertisers by $40 billion this year. That means 40 percent of the world’s ad spending is expected to take place online in 2018.

Internet usage will not eclipse TV viewing in the US until 2020

The global transition from TV to internet as the main entertainment medium happened faster than expected. Last year, Zenith predicted that TV would still be more popular in 2019 but has since revised its estimates.


A Mobile-First World For Video

Traffic from wireless and mobile devices will account for more than 63 percent of total IP traffic by 2021

By 2021, wired devices will account for 37 percent of IP traffic, while Wi-Fi and mobile devices will account for 63 percent of IP traffic. In 2016, wired devices accounted for the majority of IP traffic at 51 percent.

Mobile shoppers are three times as likely to view a video as desktop shoppers

Among the videos most likely to have a positive impact on ROI are how-to instructional videos, product demonstrations, explainer videos and interviews with experts that cement authority in your space.

Shoppers who view video are 1.81 times more likely to purchase than non-viewers

Mobile shoppers who view video are 1.81 times more likely to purchase than non-viewers, and retailers report a 40% uplift in purchases as a result of video.

People are much more likely to view instructional videos on their smartphone

If you’re a brand that sells DIY supplies, homeware or hardware, you can cater to this audience by producing how-to videos – as Home Depot has done to great success, racking up more 1 million monthly views on their YouTube channel.

Mobile video consumption has risen from around 14 minutes in 2015 to an estimated 35 minutes in 2018

Video consumption on mobile has been on the rise since 2012, but really started to shoot upwards in 2015, with the global number of minutes viewed per day rising from around 14 minutes in 2015 to an estimated 35 minutes in 2018.

Mobile video ad revenues are set to rise from $3.5 billion in 2015 to $13.5 billion in 2020

Econsultancy’s Trend Briefing report, Putting Video in Context for 2018, found that mobile video ad revenues are set to rise from $3.5 billion in 2015 to $13.5 billion in 2020.

There are more opportunities to target users with mobile video advertising than ever before

There are more opportunities to target users with mobile video advertising than ever before, with social networks like Facebook, Instagram, Twitter and Snapchat all offering video ad placements.

Mobile video ad spend is set to overtake fixed (desktop) ad spend in 2018

“Even the strongholds of TV, such as live sports and news, are starting to move online, and people are consuming them on the go through mobile devices,” said Martín Utreras, vice president of forecasting at eMarketer.

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