Video, mobile to drive advertising through 2019 | Online Video | News | Rapid TV News
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Video and rich media formats will continue to be a driving force for digital advertising, according to research examining the ebbs and flows of display advertising over the next five years.

Forrester Research's Western European Online Display Advertising Forecast projects that the online display advertising spend will rise at a CAGR of 10.3% between 2014 and 2019, jumping from €7.3 billion to €11.9billion.

Two factors have been cited to account for the double-digit growth rate: mobile and video. Mobile display will pick up quickly over the next five years, with tablet taking off full speed in virtually every European market. With their larger screen real estate and growing role in customers' path to purchase, tablet-based ads will grow at a 40.5% CAGR over the period, attracting a third of total online display revenue by 2019.

Video and rich media formats meanwhile are also going strong, the firm said. Video in particular will increase 20% annually over the next five years. Attracted by the higher opportunities for story-telling and building engagement, marketers will be willing to invest higher CPMs in these formats.

These trends hold true throughout Western Europe, although distinctive patterns will emerge with regards to display spend across devices: Online display advertising revenue in the UK will grow at 9.1% annually — the slowest growth rate in Europe, reflecting the maturity of a market where growth opportunities are becoming more difficult to find.

In addition, PC display revenue will face a serious slowdown starting in 2014. In fact, Forrester expects it to decline through 2019. Ad spend will be redistributed towards tablet-based ads instead, which will make up nearly 50% of total online display in 2019.

Germany will remain the second-largest market for online display and will start slowly closing the gap with the UK, while France will remain a distant third. Overall, the German market will grow at 9.4% annually between 2014 and 2019, and the French market will grow at an annual rate of 11%. In both countries, PC display will still grow, but at a very slow pace, while tablet display will grow quickly and come to represent nearly a third of total online display by 2019.

In the US, online display ads will grow at 13.7% CAGR over the next five years.