Published April 4th, 2017
Global internet advertising expenditure will grow 13% to reach US$205bn in 2017, according to Zenith’s new Advertising Expenditure Forecasts.This will be the first year in which more money will be spent on internet advertising than advertising on traditional television (which will total US$192bn). The sheer scale of internet advertising means its growth rate is slowing. Internet ad spend grew 17% in 2016, down from 20% in 2015, and the report expects growth to slow to 13% in 2017, 12% in 2018 and 10% by 2019 (though it will continue to add US$23bn-US$24bn a year). In this environment, it is vital that platforms and publishers address advertisers’ valid concerns about viewability and brand safety to secure sustainable growth. As the market matures, advertisers need to know for certain that their ads are being actively viewed by real people in appropriate environments. “Internet advertising has contributed all of the growth in global ad spend since the beginning of the decade, and has stimulated much of the innovation we’ve seen in the market,” said Vittorio Bonori, Global Brand President. “Innovation is proceeding as fast as ever, and we believe that this is what will continue to drive brand growth for advertisers.” The global ad market has grown at a steady pace of 4%-5% a year since the beginning of the decade, and Zenith expects it to continue to do so through to 2019. The forecast for 2017 is for 4.4% growth (unchanged since the last forecasts in December), down slightly from 4.6% growth in 2016. There also should be another 4.4% growth in 2018, followed by 4.2% in 2019. These rates are slightly below the growth rates that the IMF forecasts for nominal GDP.
We are pleased to share the latest news from 24i with you, announcing that Brynhild Vinskei is joining the executive board of the leading TV app specialist, 24i. More details in the press release below.
Amsterdam, The Netherlands, February 16th 2017 – 24i Media, a leading provider of multi-screen TV apps, today announced the appointment of former Xstream executive, Brynhild Vinskei, as Chief Markets Officer. In her new role, she will head the global Sales and Marketing activities for the company and play an instrumental role in the strategic development, expansion and growth of the company globally.
"We are delighted to welcome Brynhild as Chief Markets Officer at 24i.” said Martijn Van Horssen, CEO at 24i. “Brynhild brings extraordinary business expertise and marketing leadership, and is recognized in the industry for developing and executing strategies that have accelerated growth and created significant brand value.Her insight and industry knowledge will help us elevate the 24i brand, enable us to respond to the increasing demand for our services globally, and drive revenue growth across our entire product portfolio.” Hans Disch, 24i’s CSO, adds to that: “Brynhild is the personification of the new phase 24i has reached in successfully executing its global growth strategy. Martijn and I look forward to work with Brynhild and our executive management team, as we continue our enterprise, focused on our joint ambition of changing the future of TV – and realize it."
In her most recent position as Chief Marketing Officer at Xstream, she helped establish the company as a leader in OTT solutions. In a career that spans 17 years, Brynhild has held senior positions managing all aspects of sales, marketing, partner management, communication, events, product marketing, strategic planning and business development. Under her leadership, 24i will continue to drive a stronger global market presence and strengthen strategic partnerships with customers and partners.
Speaking of her new appointment, Brynhild Vinskei says "I am thrilled to be joining the 24i team at such a pivotal time in the company’s history. 24i has been growing extensively over the past few years and is well poised for its continued growth ambitions, helping customers to create highly flexible, personalized and cost-effective TV app solutions across all devices. The consistent 50% yearly growth in sales, achieved through its innovative product stack, validates its commitment and passion to offer their customers future proof, best-in-breed technology. I look forward to applying my expertise to leverage industry trends and drive revenue growth, while being a part of an incredibly innovative, ambitious and close team."
About 24i Media (www.24i.com)
24i is a leading vendor in Smart TV apps for all devices including mobile, Smart TV, Set-top-boxes, Pc/ Mac , game consoles etc., empowering broadcasters, content owners and operators with future-proof and flexible tools to create and monetize personalized TV apps, while accelerating time-to-market and reducing cost.
24i’s technology framework powers the digital experience for leading brands around the world, including RTL, Fox Sports, Viacom Media Networks, Televisa, Fuse Media and many more, delivering state-of-the-art OTT apps, designed to maximize ROI, create seamless consumer experiences and build personalized engagements across all platforms.
24i Media is headquartered in Amsterdam, with offices in Los Angeles, Buenos Aires, Madrid and Brno.
Feb 21, 2018
Jan 22, 2019
There will be more than 777 million global SVOD subscriptions by 2023, more than double from 2017 according to Ooyala’s new State of the Broadcast Industry 2019 report, which also found that the momentum only stands to increase.
The report – which draws on Ooyala’s own data and analysis as well as research conducted by other organizations – also underscores that viewers of all ages are increasingly adopting streaming services as their primary source of TV content. While Boomers and the Silent Generation (those born before World War II) remain the lifeblood of traditional broadcasters, they too are increasingly adopting over-the-top (OTT) and video on demand (VOD) platforms.
2018 was a year of significant change in the broadcast industry. There was a surge in M&A activity, an increase in the amount of time consumers spent with SVOD and AVOD content and a significant decline in pay-TV subscribers in North America as viewers changed how they watch TV… OTT jumped into the mainstream. There’s even more change in the cards for 2019.
Among US adults 50-64, OTT viewing increased 45% between 2016 and 2017; among US adults 65+, viewing was up 36%.
The report also postulated that mobile platforms will be a significant factor in OTT consumption in the future, given that estimates say video could make up as much as 90% of all 5G traffic.
“For OTT, that means faster and smoother delivery of video, no buffering, higher resolution, and a better, more engaging experience for users; for AVOD companies specifically, it will foster the collection of better, deeper data that could be used to better personalize advertising,” said the report.
The lesson for traditional broadcasters, the report noted, is to adopt the mindset of a diversified media company – as more programmers and distributors are joining, rather than fighting, the push into OTT.
“Subscription and ad-supported OTT services are steadily replacing traditional content delivery, and there’s no end to the opportunity to create connections with a global audience,” said Ooyala principal analyst Jim O'Neill. “OTT is not traditional TV. It thrives upon consumer choice, often random interaction, and the convenience of viewing when, where and on what device a consumer chooses. It thrives upon its own ability to iterate in order to respond to the changing conditions of the new TV environment.”
Meanwhile, as mobile viewing soars, it turns out that screen size still matters to the majority of consumers. A full 40% of US consumers who replaced a TV between October 2016 and October 2018 said they wanted to purchase a bigger screen, per The NPD Group. And consumers are going all-in on 4K UHD, driven largely by SVOD services, like Netflix, and the promise of 4K and UHD content from major sporting events, like the Winter Olympics and the FIFA World Cup.
“Content owners have seen a massive increase in the demand for their products,” continued O'Neill. “That will continue as OTT services push out across the globe and original content maintains — and grows — its value. It’s becoming increasingly important for media companies – both big and small – to closely monitor and control the content supply chain.”
New OTT Services Aren’t Saturating the Market, they ARE the Market
Is the influx of new OTT services creating saturation in the market? Not by a long shot. While there’s likely a limit as to how many SVOD services users really are ready to pay for, that upper limit hasn’t yet been reached. And, as we see more channels become available a la carte, that limit may continue to rise, especially as younger consumers — who see streaming as the norm — grow older.
Mar 22, 2017