The latest report on UK adspend compiled by the Advertising Association and Warc was released yesterday. The study predicts that advertising revenues in the UK will hit an all time high by 2015, surpassing £20 billion for the first time.
Internet adspend is expected to rise by 12% year on year in 2014 and 2015 and mobile is set to take a very large chunk of this spend, estimated to grow by 73% in 2014 and 45% in 2015.
It is fantastic news for the UK economy and advertising industry as a whole, but the research can be seen as incredibly positive news for the video advertising industry in particular.
Mobile video advertising grew by a staggering 346% in 2013, now estimated to be worth £69.4 million, 16% of the total mobile market. With such strong growth forecast for the mobile sector, we can only be optimistic about the future of mobile video advertising.
A recent survey conducted by the IAB revealed that 75% of brand marketers and advertising agency executives anticipate digital video will become as important as TV advertising within the next three to five years. Nearly 48% have already adjusted their budgets to reflect the change in marketing, with 65% predicting they will spend more on video advertising in 2014 than they did in 2013. 65% also anticipate this additional spend will come at the expense of television advertising budgets.
Taking into consideration the predicted rise of advertising spend, mobile video advertising growth and changing attitudes of marketers towards digital video, video advertising looks to have a strong two years ahead.