The increasing number of Britons that watch TV and movies online has driven the advertisement industry to increase its digital advertising spending, with an increase of almost 200% on mobile video ads, according to a research from PwC and Internet Advertising Bureau UK.
Professional services firm PwC recently released, together with Internet Advertising Bureau (IAB), 'Digital Adspend', a biannual report that looks into the advertising spend figures in the UK. The most recent research shows that digital advertising is increasing as a result of more and more people watching video clips, TV and films online.
In the UK, almost 73% of Britons have watched TV programmes online in the last six months, 72% watched short online video clips, and almost 60% watched movies online. Looking at the time spent, people in the UK that watch TV programmes online spend on average 2 hours 35 minutes a week, people watching online films 1 hour 50 minutes, and viewers of video clips 51 minutes. The Scots are most likely to watch something online; TV is viewed online by 78% of the Scots, films by 66% and video clips by 82%. Least likely are the Eastern Britons.
According to the report, the increasing appetite for online video and TV has driven advertisers to spend £3.5 billion in the first half year of 2014 on digital advertising, an increase of 16.6% compared to in the first half of 2014. “A third of online viewers, particularly 35-44 year olds, are watching more TV, films and clips online than a year ago. Consequently, video now accounts for £1 in every £5 spent on internet and mobile display ads,” says Tim Elkington, Chief Strategy Officer at the Internet Advertising Bureau UK.
Video advertising on the internet and mobile phones increased by 59% to £202 million, of which mobile video advertising accounts for £63.9 million, an increase of 196%. An amount that is expected to increase even further “As 4G becomes more prevalent and phone screens become larger, it will play an even bigger role in driving digital ad spend – particularly video,” adds Dan Bunyan, Manager at PwC.