Global Consumer & Ad Spend on TV, Video to Reach $559 Billion

Strategy Analytics is forecasting that global consumer and advertising spend on TV and video will increase from $490 billion in 2017 to $559 billion in 2022, driven by OTT.

According to Strategy Analytics’ Television & Media Strategies report, TV’s Transformation: A Unified TV and Video Market Perspective, spend on OTT video will account for 90 percent of this growth. Consumer spending and digital video ad revenue from OTT video services is expected to double over the forecast period, reaching $123 billion in 2022. By 2022, consumer and advertising spend on traditional TV and video products and services will be in excess of $435 billion, an increase of $7 billion from 2017, and account for nearly 78 percent of all TV and video revenue.

In 2022, North America will still be the largest TV and video market, accounting for 38.7 percent of global consumer and advertising spend. The Asia-Pacific region will account for 23.4 percent.

“OTT TV and video services will be the driving force behind future revenue,” said Michael Goodman, director of Television & Media Strategies. “However, traditional TV and video services should not despair too much, as they will continue to account for the majority of consumer and advertising spend for the foreseeable future.”