Users aren't seeing as many ads thanks to ad-blocking technology. Furthermore, people have been shifting to mobile as their primary media consumption device in the last three years, while ad spend lagged. The industry is reactive rather than proactive. As a result, U.S. digital ad revenue has become Google and Facebook, followed by everyone else.
But immersive video through virtual and augmented reality could change all that.
Determinants of health, dimensions of health, positive health and spectrum of...
IGNITION 2016: You Missed Mobile — Don't Miss Immersive Video
1. P R O V I D I N G I N - D E P T H I N S I G H T ,
D A T A , A N D A N A L Y S I S O F
E V E R Y T H I N G D I G I T A L .
YOU MISSED
MOBILE —
DON’T MISS
IMMERSIVE VIDEO
DY LA N M O R TE NSE N,
SE NIO R R E SE A R C H A NA LY ST
4. CONSUMERS AREN’T SEEING YOUR ADS
US D ISP LAY A D R E VE NUE LO SS FR O M A D BLO C K E R S, BILLIO NS ( $ )
Source: Optimal.com US Ad Blocking Forecast, May 2016
$3.9
$5.7
$7.6
$9.8
$12.1
2016 2017 2018 2019 2020
7. PEOPLE SHIFTED TO MOBILE
US M O BILE C O NSUM E R TIM E SP E ND,
% SHA R E O F TO TA L TIM E SP E NT WITH M E D IA
Source: BI Intelligence Estimates, based on data from PwC, IAB, and eMarketer
20%
25%
35%
2014 2015 2016
Time Spend
8. 20%
25%
35%
7%
11%
17%
2014 2015 2016
Time Spend Ad Spend
BUT AD SPEND LAGGED
US M O BILE A D SP E ND VS. TIM E SP E ND,
% SHA R E O F TO TA L SP E NT O N M O BILE
How to read: Consumers spent 20% of their media time on mobile devices, but only 7% of ad spend went to mobile in 2014.
Source: BI Intelligence Estimates, based on datafromPwC, IAB, and eMarketer
9. AND PEOPLE SHIFTED TO MOBILE VIDEO
US M O BILE VID E O C O NSUM E R TIM E SP E ND,
% O F TO TA L TIM E SP E NT O N O NLINE VID E O
34%
46%
51%
2014 2015 2016
Time Spend
Source: Ooyala Global Video Index
10. 34%
46%
51%
24% 23%
42%
2014 2015 2016
Time Spend Ad Spend
BUT AD SPEND LAGGED
US M O BILE VID E O A D SP E ND VS. TIM E SP E ND,
% O F TO TA L SP E NT O N O NLINE VID E O
How to read: Consumers spent 34% of video time on mobile, but only 24% of online video ad spend went to mobile in 2014.
Source: BI Intelligence Estimates, based on datafromPwC, IAB, and Ooyala
22. Source: The New York Times
more than 600,000
initial downloads of its app,
making it the company’s most
successful app launch to date.
THE NEW YORK TIMES SAW…
39. $86
$238
$787 $703
$2,606
23 41 60 137 152
2012 2013 2014 2015 2016
Amount Invested Number of Deals
BUT INVESTORS ARE POURING MONEY INTO IT
G LO BA L INVE STM E NT IN VR A ND A R C O M PA NIE S, M ILLIO NS ( $ )
Source: CB Insights, July 2016
+271%
40. Source: Reuters, 2016
MAJOR COMPANIES ARE BETTING ON IT
In their Q1 2016 earnings,
38 companies highlighted
VR as part of their business
plan. That’s a 375% jump
year-over-year.
41. CONTENT IS SKYROCKETING
The global VR content market is
expected to grow at a CAGR of
128% from 2016 to 2020.
Source: IDC, Google, Facebook
By 2020, over 20% of
commercial media on Facebook
will be in a 360-degree format.
42. $1,333
$928
$524
$365
$67 $47
2016 2017 2018 2019 2020 2021
Stand-alone
PC and game-
console-powered
Smartphone-
powered
PRICES ARE DROPPING
Source: BI Intelligence Estimates, based on current headset prices
A VE R A G E SE LLING P R IC E FO R E C A ST FO R
M A JO R A R /VR HE A D SE T C ATE G O R IE S
$ Change
-405
-159
-20
43. AND WHILE VR PENETRATION IS STILL LOW,
THERE’S LONG-TERM OPPORTUNITY
US VR D E VIC E P E NE TR ATIO N,
% O F C O NSUM E R S WHO HA VE A VR HE A D SE T
Source: Strategy Analytics, July 2016
6%
16%
27%
33%
40%
2016 2017 2018 2019 2020
45. Source: Greenlight Insights, 2016
BUT THEY’RE INTERESTED IN IT
74% of consumers
expressed interest in travel,
tourism, or adventure VR content.
46. Source: Nielsen Media Labs, 2016
AND ARE CONSIDERING PURCHASING IT
One in four consumers
aged 18 to 54 are considering
purchasing a VR device in the
next year.