Surging advertising creates further gains in online video
| 15 May 2014
Research from TechNavio has found that the online video market has generated a virtuous circle whereby the advertising industry's growing requirements are further driving consumption. Indeed the analyst calculates that advertising will be a major factor contributing to a CAGR of 13.16% from 2013-2018 making the market worth $630.82 million at the end of this period.
Looking at what were the growth drivers, TechNavio highlighted several factors including a major push from ad firms to move their content online. The TechNavio report also pinpointed a general increase in demand for online videos, rise in use of smartphones and tablets, and growth of the online audience as other factors promoting market growth.
"Digital media and marketing professionals have increased their expenditure on online video advertisements to attract more consumers, with some companies even reporting an increase of as much as 65% on their spending in this sphere," explained TechNavio vice president Faisal Ghaus. "Since consumers in general are spending more time online, they are now more likely to watch online ads than TV commercials. Hence, companies are adopting online video platforms to help with the analysis, uploading, distribution, video content management, and publishing of online video advertisements."
In its Global Online Video Platform Market report, TechNavio also highlighted a number of key players of the online video industry. These include Brightcove, Kaltura and Ooyala.