Worldwide revenue from mobile video will reach $25 billion by 2021, according to the latest research by Strategy Analytics. The growth in mobile video revenue will be driven by advertisers seeking to reach an increasing audience of users that are relentlessly consuming video on their smartphones and tablets. The report, Global Mobile Video Forecast: 2010-2021, also predicts users of mobile video to more than double to 2 billion users by the end of 2022—equal to 36 percent penetration among global mobile users.
The report sizes the worldwide market for mobile video users and revenue on phones and tablets across major regions, from 2010-2021. Mobile video revenue is broken out by business model, including sell-through, rental, subscription and advertising funded.
“The strongest growth in mobile video revenue will come from advertising-funded content as advertisers look to catch up with the increasing quantity of video consumption,” said Wei Shi, wireless media strategies analyst, in a news release. “Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years.”
Social platforms with audience scale, like Facebook, Twitter, WeChat and others are increasingly looking to video to increase user engagement rates while reducing churn, but will offer potential for monetization in future.
“Despite growing video consumption on mobile devices, advertiser expenditure on mobile video has yet to catch-up with this growth,” added Nitesh Patel, director at Strategy Analytics, in the release. “Furthermore, new modes of mobile video services such as live streaming platforms like Periscope and Facebook Live are focused on building audience before revenue. Currently, social networks have launched live video streaming as a tool to increase user engagement and to extend the time spent by users while inside of social networks, but we expect direct monetization to follow.”
Source: PR Newswire; edited by Richard Carufel