Ads are the bigger driver of video revenues, not subscriptions

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Global digital video ad revenues will top $360 billion in 2027, according to Omdia. That’s up more than $170 billion from this year. By contrast, video subscription revenues will rise about $30 billion over that period and remain below $120 billion in 2027.

Beyond the chart: Between 2022 and 2026, 350 million people will become digital video viewers worldwide, per our forecast. In about four years, 47.1% of the world will watch video content, a bump of less than 3 percentage points over 2022.

Video ad spending growth will come more from an increase in spending per viewer than in the viewership itself. This trend is reflected in overall digital ad spending, which will rise from nearly $125 per internet user this year to more than $170 each in 2026.

More like this:

• Report: US Connected TV Advertising Forecast 2022
• Article: Advertisers hone in on marketing opportunities as TV viewing evolves
• Article: The holiday season provides a brief reprieve from the ad downturn