YouTube, Facebook Poised To Suck Away Your Ad Dollars


Attention, broadcast media: Advertising spend on “Free Video on Demand” content — such as media on YouTube and Facebook — is predicted to surge by $25 billion over the next five years.

In addition, unique users of such content will reach just under 4.5 billion globally by 2022, as the appetite for free video media continues to growth.

Perhaps its time for radio and TV to fully invest in digital delivery, so it does not lose out on advertising dollar allocations by marketers across all categories.

The findings come from Juniper Research‘s just-released report Digital TV & Video: Network and OTT Strategies 2017-2022, which finds that YouTube, which sees over 1 billion hours watched per day, will face increasing competition from social media platforms.

But, it will remain a voracious gobbler of digital ad dollars as the delivery of live video content via social media channels is on track to be one of the key growth areas for 2018, as users increase the volume of live broadcast content posted to these platforms.

Such examples include Instagram, which has over 800 million monthly active users, and Snapchat which has 178 million daily active users, the U.K.-based Juniper reports.

Research author Lauren Foye explained, “This content will increasingly be of interest to advertisers, especially in view of Facebook’s monthly active user base of over 2 billion people. The company has launched an app and website ‘Facebook for Creators’ to help users refine video content and generate viewership.”

Juniper found that this will aid growth in content consumption, with data usage from OTT content surpassing 840 Exabytes by 2022, the equivalent of 129 billion hours of 4K streaming.

Pressure from Advertisers

Recent changes to YouTube’s Partner Program means that it will only accept channels with more than 1,000 subscribers, and 4,000 viewing hours acquired across a year, to its shared advertising revenue program. This change in strategy results from increased advertiser pressure following several high-profile, offensive, video posts by users.

Nevertheless, Juniper forecasts YouTube to account for almost a quarter of all FVOD ad spend by 2022.

The latest data arrives in concert with the release of a 9-slide presentation on “OTT vs. TV Networks” and three winning strategies.

In it, six “movers and shakers” were profiled by Juniper—including HBO Chairman of the Board Jeff Bewkes, Hulu CEO Randy Freer and Netflix CEO and co-founder Reed Hastings.

To view the presentation, click here.