For the past couple of years, several online marketers have shifted away from traditional advertising options to video marketing. This aligns with the growing preference for visual content by online users.
According to the latest forecast by eMarketer, online video ad spending will reach $27.8 billion in the US. This will account for 25% of all US digital advertising this year. The most popular social media platforms top the list of the highest net video ad earners:
Facebook (including Instagram) – $6.81 billion
YouTube – $3.36 billion
Twitter – $633.3 million
Snapchat – $397.3 million
Facebook Rakes in the Highest Video Ad Revenues
This year, Facebook will lead the way in total video ad spending in the US to the tune of $6.81 billion or roughly 25% of the total expenditure in this category. In the US alone, Facebook enjoys a 90% control of video ad spending on all social media platforms. It’s essential to note that these figures consider Instagram video ad revenues as well.
For many marketers, this doesn’t come as a surprise. Brands now have a deep understanding of how video can effectively deliver their marketing messages while holding the attention of their target market. Any reputable online marketing agency now creates digital video ad campaigns for their clients, supplementing other popular techniques such as SEO and PPC. With both younger and older audiences spending more time with over-the-top media services, transitioning to video content proves an excellent investment for any brand.
Other Social Media Sites Refuse to Fall Behind
While eMarketer forecasts that Facebook will enjoy double-digit growth in video ad revenue through 2020, other social media platforms show promising performances as well. A staggering 60% of US Snapchat revenue is represented by video ads. Twitter is just a tad short, with 55% of its ad revenue coming from video. Interestingly, Twitter only accounts for a mere 2.3% of total video ad spending based on the forecast.
YouTube Trails Facebook in Net Revenue
Given the numbers above, it’s peculiar to see Facebook enjoying twice as much revenue as YouTube, the largest video sharing platform in the world. YouTube has been a major contributor to Google’s ad revenue growth over the years, but the platform has much higher overhead costs than Facebook. YouTube pays out a large portion of its revenue to generate targeted traffic. Moreover, Alphabet, Google’s parent company, doesn’t have a separate category for YouTube revenue.
Experts, however, claim that YouTube would probably beat Facebook in terms of gross revenue from video ads. Some analysts at Wall Street suggest that the total ad revenues of YouTube could reach $15 billion.
What’s Next for Video?
All these numbers reflect the power of video as an ad medium for brands. The effectiveness of video ads isn’t only proven by brands and marketers, but online consumers as well. With social media platforms and traditional websites publishing more video content, it’s clear that marketers should remain focused on video marketing and explore ways to leverage it to its fullest potential.