The growth in ad spend on video-on-demand services is outpacing expenditure on other media such as paid-for search advertising and traditional formats such as TV and print.
The global market is projected to be worth $47 billion by 2023, almost double its 2018 value. China is currently leading the market for advertising on video-on-demand services (also known as streaming), with brands expected to spend $8 billion in 2018, beating the U.S., which is set to spend $7.9 billion, according to data from consultancy World Advertising Research Center (WARC) published Friday.
Ad-funded video-on-demand services in the U.S. include Hulu and HBO Now, distinct from Netflix for example, which people pay a monthly subscription to use and has no external advertising. Together, the two types of video-on-demand platform (known as over-the-top or OTT), are set to be worth $68.7 billion globally in 2018, up 28.7 percent on last year's $53.3 billion value.
Spending on traditional (or linear) TV advertising, meanwhile, is set to grow 1.1 percent to $139.9 billion in 2018, with radio adspend set to grow 0.6 percent to $24.4 billion worldwide.