As a company that performs video production as part of our tier of services, I found a report that I would like to share with you. It is very interesting about the use of video for your business!
This year will mark a milestone for digital video advertising in the US, according to eMarketer, a great on-line publication I subscribe to, the latest ad spending forecast shows video will grow nearly 30% to $27.82 billion. That means video ad spending will make up 25% of US digital ad spending.
Facebook will capture nearly one-quarter (24.5%) of all video ad spending in the US this year, at $6.81 billion (including Instagram). That makes Facebook the top social video ad platform in the US. We expect that dominance to continue over the forecast period, with double-digit growth through 2020. Not surprisingly, Facebook controls nearly 87% of US social network video ad spending. Their new video advertising service, “In-Stream” seems to be taking off fairly solid.
Snapchat’s US video revenues will reach $397.3 million this year, up nearly 19% over 2017. Video is by far the driving force behind Snapchat’s revenues, representing 60% of its US ad business through 2020. However, Snapchat’s share of social video spending will be 5.1% this year, while its share of the overall US video pie will be just 1.4%. The jury is still out on how or if Snapchat can continue to go head to head with Instagram. It’s user base is also younger than Instagram dealing with teens to mid-20’s somethings.
Twitter will derive more than half (55%) of its total US ad revenues from video in 2018. This year, video ad revenues will grow just over 12% to $633.3 million. That gives Twitter an 8.1% share of US social video ad spending, and a 2.3% share of total video spending. Its share will continue to drop slightly through 2020.
While eMarketer’s report did not consider YouTube a social network, its importance in the video ad space is too large to ignore. This year, YouTube will generate $3.36 billion in net US video ad revenues, up 17.1% over last year. YouTube now derives 73% of its ad revenues from video in the US. YouTube overall represents a steady 11% of Google’s net US ad revenues.
Because traffic acquisition and content acquisition costs exceed half of YouTube’s gross revenues—higher than its rivals—it would not be entirely accurate to compare YouTube’s share of video ad revenues to the other platforms that I mentioned here.
It is no secret that digital video marketing and advertising is going to continue to rise. We here at FDMC Digital Media have used video production as our main services since our conception. If your business is considering video as part of your next digital marketing campaign, feel free to reach out to us. Regardless of who you use, you need to start putting video into your marketing and advertising mix! Numbers do not lie!
(portions of this article from eMarketer report on digital ad forecasting)
Tags: #videomarketing, #video, #advertising, #dgital media, #digital marketing, #social media