Forrester report: Video ad spending expected to hit $103B in 2023
Marketers shouldn't abandon TV, but they should add other distribution channels to the mix.
Advertisers will spend a staggering $102.8 billion dollars a year on video ads by 2023, according to a recent Forrester report. That number is up from $90.7 billion this year.
Forrester Analytics: Video Advertising Forecast, 2018 To 2023 (US) (subscription required) analyzed data collected from various sources, including its ForecastView service. Online video includes both free and paid streaming from web-based services, TV networks and social media.
There are a number of important lessons marketers can learn from this data.
Online video is on the rise, but don’t count TV out yet
Online video’s share of ad spending is expected to grow from 21.2 percent to 34.3 in 2032, edging out TV’s share. And the number of online video viewers in 2018 (200 million) is fast approaching the size of the TV audience (258 million).
Interestingly, 81 million will only watch video from a TV network’s website or app in 2018, but advertisers aren’t there. Only 10 percent of marketers are expected to increase their ad spending more than 6 percent next year. This leaves an opportunity on network sites and apps.