India and Spain are likely to lead the growth in advertising spend in video entertainment through 2022 according to Zenith’s Business Intelligence – Video Entertainment report.

According to the analysis of 10 key markets which for m57 per cent of all global adspend, spend by video entertainment brands will fall just 0.2 per cent in 2020. This includes Australia, Canada, Germany, India, Italy, Russia, Spain, Switzerland, the UK and the |US.

As per the report, adspends in video entertainment will outperform the ad market which is forecasted to drop by 8.7 per cent across these same markets.

This growth in video entertainment adspend will be led by India and Spain. Zenith has predicted that video entertainment brands will spend 27 per cent and 19 per cent more in Spain and India, respectively in 2020 as compared to 2019. Meanwhile, spending is expected to decline by 5 per cent in the US and 7 per cent in Australia, the report said.

“Spain and India both have fast-growing appetites for video-on-demand, especially on smartphones in India. India’s television ad market also enjoys rapid long-term growth – unlike in most Western countries – and should bounce back quickly in 2021,” Zenith said.

Pivot to digital

In terms of trends, video brands will pivot more towards digital. According to the report, brands are likely to spend 57 per cent of their budgets on digital advertising in 2020.

This is due to multiple factors. According to Zenith, consumers are moving towards video content with stay at home orders amid the COvid-19 pandemic. They are turning to online video platforms. Online video platforms have also increased spending to provide more content as competition between video brands intensifies. The spending outpaced traditional television brands, as per the report.

“Consumers are now faced with a vast and confusing array of programmes and films vying for their attention,” said Christian Lee, Global Managing Director, Zenith. “Video brands need to cut through this complexity and give consumers entertainment that matches their personal preferences with minimum fuss. Brands that provide compelling experiences and act as more than just repositories of content will be best positioned for growth in the long term.”

Sustaining growth

However, falling revenues from free and pay-TV will hinder recovery in 2021 and 2022. Apart from this, it will also be difficult for fr brands to sustain increased spending.

The report forecasts video entertainment adspend to grow by 1.2 per cent in 2022 than it was in 2019.

“Consumers are currently benefiting from a generous supply of video content from brands vying for their loyalty,” said Jonathan Barnard, Zenith’s Head of Forecasting. “This competition is providing a large boost to video entertainment adspend this year. But this level of investment in both content and advertising will prove difficult to sustain for the long-term, and we forecast very little growth in 2021 and 2022.”

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