Executive Summary

This is the latest installment in an ongoing series of quarterly video ecosystem overviews focusing on monetization, audience, platforms and content. The goal of each report is to provide a summary of key recent developments.

What is the progress of programmatic in video ad spending?

More than 80% of video ads are already transacted programmatically, but the share of automated ads will continue to grow in the next few years. At the same time, mobile’s share of programmatic video advertising will also increase.

How much time are consumers spending watching digital video vs. TV?

Time spent with digital video continues to increase at the expense of TV time, which is declining. Although TV still accounts for the lion’s share of visual media time, video is slowly closing the gap.

Where are consumers watching video?

Mobile video viewing continues to grow, but so does connected TV viewing, indicating that audiences are as hungry for snackable, on-the-go clips as they are for full-length, lean-back programming.

Who is investing in over-the-top (OTT) content?

Netflix, the US market leader among subscription services, will continue to ramp up its investments in original content, according to an independent study that analyzed its spending patterns. The study also noted that the company’s revenue has tracked closely with its content spending since at least 2011.

WHAT’S IN THIS REPORT? This report covers key events in the digital video industry based on data, trends and business activity in Q4 2018.

KEY STAT: Programmatic buying—ads transacted via an application programming interface—continues to dominate the digital video ad marketplace. Programmatic video will continue to grow by double digits through at least 2020, by which time, it will represent 83.6% of US digital video ad spending.