European Online Video Ad Spend Up 21%

A new report from RTL Group ad network Ad Connect estimates that spending on online video advertising is growing rapidly, but is still a small part of total video advertising.

Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation

September 26, 2017

2 Min Read
European Online Video Ad Spend Up 21%

Online video advertising in Europe grew 21% in 2016, according to a new report released by RTL/Ad Connect, the media network owned by European broadcaster RTL . As reported in Broadband TV News, the study determined that total European ad spend on video increased by just 2% -- far below the growth rate for online video.

But it also found that ad spend on traditional TV remains far ahead of online, even if online is growing rapidly. The report estimated total video ad spend was was €37 billion ($43.6 billion) in 2016, with online video accounting for less than 10%, at just €3 billion ($3.5 billion).

The study did highlight the growth of online video consumption as well as the fact that it was mostly due to increased mobile video consumption. Total time spent viewing online video was one hour, four minutes per day -- up 51 minutes from 2012. Of that time, the vast majority (45 minutes) was via mobile devices -- up 41 minutes since 2012.

This compares to an average of three hours and 52 minutes per day spent viewing television in Europe, according to another report from RTL Ad Connect.

Want to know more about video and TV market trends? Check out our dedicated video services content channel here on Light Reading.

While not offering any earth-shattering conclusions, the research identifies three important issues for content owners and distributors.

Firstly, that consumption of traditional TV may be in decline but is far from dead. Both in terms of viewership and attracting advertising, TV continues to dominate -- and should not be ignored.

Second, online video is a valuable advertising opportunity, with advertiser interest growing steadily.

And lastly, mobile is the key to the next generation of video services, with short-form, mobile-first videos likely to be the fastest-growing format in coming years.

RTL Ad Connect's TV Key Facts tracks and measures television and advertising across 39 countries (35 European countries plus India, China, the US and Japan). To produce the report, RTL Ad Connect collaborates with a range of European audience and advertising data collection organizations sourcing data on programming, audience and advertising trends and includes a country-by-country database detailing each local television market.

— Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation

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About the Author(s)

Aditya Kishore

Practice Leader, Video Transformation, Telco Transformation

Aditya Kishore is the Principal Analyst at Diametric Analysis, a consultancy focused on analysing the disruptive impact of Internet distribution on the video and telecom sectors, and developing the necessary strategies and technology solutions required to drive profitability. He can be reached at [email protected]

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