European video advertising spending is projected to grow by more than 30 percent year-over-year in 2015 and will increase at a 26.4 percent co.pound annual growth rate (CAGR) over the next five years to represent half of all EU online display advertising spending by 2020, according to a recent report by Forrester Research.
For this report, Forrester assessed 50 high-traffic publisher sites in the UK, France, Germany, Spain, and Italy and data from a survey of 16,000 EU consumers and compared the findings to its historical studies of the same nature. Key findings from the research include:
- While in-stream video ads are the most widespread means of monetizing online video content in Europe, they are also the most unpopular ad format with 53 percent of EU consumers actively avoiding ads before or during online videos. The avoidance rate spikes to 63 percent among French consumers.
- Mobile video viewing adoption in Europe is growing much more slowly than anticipated with just 14 percent of EU consumers regularly watch video on a mobile phone, compared with 32 percent on a PC and 28 percent on a tablet. Mobile video consumption is lowest in the UK at eight percent and France at nine percent.
- Targeting is still primarily based on content not people.
- In the more mature video ad markets of the UK and France, where programmatic buying is more widely adopted, targeting is better aligned to sociodemographic profiles, search, and online behaviors.
- Marketers buying inventory through the likes of AppNexus, DoubleClick, and TubeMogul were consistently more successful at delivering relevant ads. They were still, however, the exception, rather than the rule.
For additional information, contact: Forrester Research, www.forrester.com