Rising viewing, content and competition means ad spend for entertainment video brands will drop just 0.2% in 2020 globallyZenith expects advertising in the audiovisual entertainment category to decline just 0.2% in 2020 in the top ten markets this year *, according to the Business Intelligence – Video Entertainment report, released yesterday. Advertising investment for audiovisual entertainment will far exceed the advertising market as a whole, which will fall by around 8.7% in these same markets.The remarkable resistance of advertising investment in the audiovisual entertainment market in this year of a global pandemic and subsequent recession, is the result of greater consumer demand, a greater supply of content and intense competition in the fight for viewers among the companies that offer this service.Realizing that we spend much more time at home, consumers have turned to video content to stay informed and entertained. In Spain, television viewing time was 43% higher in May compared to the previous year. Meanwhile, online video platforms have invested large sums of money in creating content to attract new viewers, forcing traditional TV channels to improve their content.Ad spend by online video brands has far exceeded traditional television recently. In the US, online video content companies increased their advertising budgets by 142% in 2019, while television networks increased their investment by 15%.

In the UK, ad spend from online video platforms increased 79%, while ad spend from South Sudan Email List traditional TV grew 34%. In both markets, the chains of Television and pay-TV platforms temporarily increased investment in response to their new competition, but this will prove unsustainable in the face of continued declining revenues, both those related to COVID-19 and those related to structural. Meanwhile, online video platforms have continued to increase their budgets as they seek to make the most of the current opportunity to build a loyal customer base. Each platform is investing heavily to make sure it is on the minds of consumers as they consider which ones to commit to for the long term.

“Consumers are now faced with a confusing and wide variety of shows and movies competing for their attention,” said Christian Lee, Zenith’s Global Managing Director. “AV entertainment companies must overcome this complexity and provide consumers with entertainment that matches their personal preferences with minimal effort. Brands that deliver satisfying experiences and act as more than mere repositories of content will be better positioned to grow long term. term”.Confinement has made digital media even more vital to this sectorAudiovisual entertainment companies invest more in digital, outdoor and cinema advertising than the average. Their reliance on cinema and abroad has posed a particular challenge this year, as they have been forced to make up for lost audiences in empty cities and closed cinemas.

This means even more digital investment, as the total ad spend of the audiovisual entertainment sector is projected to increase from 53% in 2019 to 57% in 2020.The advertising investment of the audiovisual entertainment sector will exceed in 2022 by 1.2% in 2019While entertainment video is expected to substantially outperform the market in 2020, Zenith expects it to underperform in the next two years, with no growth in 2021 and growth of 1.2% in 2022. Video platforms Online will have less ability to increase budgets after investing so much in 2020, and traditional TV networks will be hit by declining revenue from TV advertising and pay TV subscriptions. However, Zenith expects ad spend for entertainment video to be 1.2% higher in 2022 than in 2019, while general advertising will continue to be 0.6% below its peak in 2019.

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