According to the latest research from Strategy Analytics, worldwide revenue from mobile video will reach $25 billion by 2021.
The growth in mobile video revenue will be driven by advertisers seeking to reach an increasing audience of users that are consuming video on their smartphones and tablets. The report, Global Mobile Video Forecast: 2010-2021, also expects users of mobile video to more than double to 2 billion by the end of 2022, equal to 36 percent penetration among the global mobile users.
Wei Shi, analyst for wireless media strategies, said: “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. Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years.”
Nitesh Patel, director of Strategy Analytics, added: “Despite growing video consumption on mobile devices, advertiser expenditure on mobile video has yet to catch up with this growth. 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.”
The report states that, More than 2 Billion people will be watching video on mobile devices by 2021, driving the total value of global mobile video market to $30 Billion, doubling the value of 2016. This is largely driven by the fast growth of ad-funded video market as well as the steady growth of subscription based streaming services.
Although the number of mobile video users on connected tablets is only a quarter of the number on mobile handsets, the average value created by a tablet user is 2.5 times that of a user on mobile phones.