The TV industry has been combating disruption. Meanwhile, digital video is rapidly growing across areas that typically overlap with TV.
We hear it time and time again, the TV industry is fighting through a disruptive media industry. Often, when we’re living through disrupted industries, it is hard to recognize just how monumental the changes really are.
Our case: media and entertainment.
The changes are happening rapidly and the magnitude will continue to be enormous. However, in some aspects, it is difficult for some people in the industry to really grasp the revolution that is happening in their living room.
Today, you can watch your favorite shows, wherever and whenever you want; thanks to streaming. There are thousands of different content options right at your finger tips. Due to, the entertainment industry doing everything in their power to be the next big ‘binge-worthy’ show.
There has been a lot of buzz about streaming as well as programmatic video, but what is really telling is the numbers.
For example, the number of digital video viewers in the US will reach 235.1 million in 2019. That number represents 71.2% of the country’s population.
eMarketer forecasts that digital video will grow and reach $36.01 billion this year, an increase of 20.8% from 2018.
This year, video will account for almost half of programmatic spend. To be exact, US marketers will spend $29.24 billion on programmatic video this year. That accounts for 49.2% of all US programmatic digital display ad spending.
Looking to the future, we expect the amount of programmatic spend that goes to video to remain steady.
As 2019 comes to a close there are 3 key trends to keep in mind for 2020.
- The number of payTV subscriber households will decline. eMarketer forecasts that the number of payTV subscriber households will decline from 86.5 million in 2019 to 72.7 million in 2023.
- Connected TV will continue to grow.
- Netflix users are becoming more price-sensitive
- The video streaming landscape will look much different, in a year, than it does today
With eMarketer’s trends in mind, programmatic video is expected to take over the digital market in the years to come.
Be sure you’re advertising efforts are staying relevant with video!