×
You will be redirected back to your article in seconds

Facebook Controls 87% of U.S. Social Video Ad Spending (Study)

Video advertising to represent 25% of U.S. digital ad spending in 2018: eMarketer forecast

Even as Facebook’s disclosures of massive user-data breaches this year have damaged its reputation, the social giant’s revenue juggernaut doesn’t show signs of slowing down.

In 2018, Facebook — including Instagram — will rake in $6.81 billion in video-ad spending in the U.S. alone, capturing about one-fourth of digital video-ad spending in the United States this year, according to the latest forecast from research firm eMarketer.

That will keep Facebook firmly in place as the No. 1 social-video ad platform in the U.S., owning almost 87% of U.S. social video ad spending, eMarketer estimated. And the researcher expects the one-two punch of Facebook and Instagram to continue dominating, with double-digit growth in video ad revenue through 2020.

Most of Facebook’s video revenue comes from ads in the Facebook and Instagram feeds, while the newer in-stream advertising formats for Facebook Watch shows is smaller. “In-feed video has been a successful ad format for both Facebook and Instagram,” eMarketer principal analyst Debra Aho Williamson commented. “Marketers rely on in-feed video ads to capture users’ attention and build brand awareness.”

Overall, according to eMarketer’s latest forecast, U.S. video ad spending will grow nearly 30% to $27.82 billion in 2018, meaning video will comprise about 25% of total U.S. digital ad spending this year.

In 2018, YouTube will generate an estimated $3.36 billion in net U.S. video ad revenues, up 17% over last year, according to eMarketer. But because the Google-owned video platform’s traffic acquisition and content costs are more than half of its gross revenues — much higher than other platforms — YouTube’s video-ad revenue isn’t comparable to platforms like Facebook, Instagram, Snapchat or Twitter.

YouTube now generates 73% of its ad revenue from video in the U.S., and the video platform represents 11% of Google’s net U.S. ad revenue, according to eMarketer.

Snap and Twitter are far smaller than Facebook, but both have grown video-ad revenue at double-digit rates, per eMarketer.

Twitter will grow U.S. video advertising just over 12% this year, to $633 million, representing 55% of total domestic ad sales. That gives Twitter an 8.1% share of the U.S. social video ad market but it will see its share drop slightly through 2020, the researcher predicts.

Snapchat’s U.S. video revenue will hit $397 million this year, up almost 19% over 2017, with the category representing 60% of Snap’s U.S. ad business through 2020. For 2018, Snapchat’s share of social video spending will be 5.1% this year, continuing to grow slightly through 2020, according to the eMarketer forecast.

More Digital

  • USA Today Mobile Apps Get Oscars

    USA Today Launches Oscars AR Experience to Highlight Work of Costume Designers (EXCLUSIVE)

    USA Today is getting ready for the Academy Awards with an augmented reality (AR) experience dedicated to the work of the costume designers on some of the Oscar-nominated movies. The experience, which went live in USA Today’s Android and iOS app Monday, presents wardrobe from 6 movies in augmented reality, including costumes worn on “Mary [...]

  • Amazon Prime

    Amazon Prime India Greenlights ‘Bandits’ Music Series

    Amazon Prime Video India has greenlit original series “Bandish Bandits.” The show is a musical created by Still and Still Media Collective. The series will follow an Indian classical musician bound by tradition and a pop star whose performance skills are greater than her talent. A bandish is a term used to describe a musical [...]

  • Alibaba Buys 8% Stake in Chinese

    Alibaba Buys 8% Stake in Chinese Video Platform Bilibili

    Alibaba has purchased an 8% stake in the Chinese online video platform Bilibili, the official Xinhua news agency reported. Bilibili is one of China’s top video streaming and entertainment platforms, with about 92 million monthly active users and 450 million page-views per day. Founded in 2009, it was listed on the NASDAQ last March. Alibaba’s [...]

  • Clevver-Logo

    Hearst Magazines Buys Clevver's Pop-Culture YouTube Channels After Defy's Demise

    Hearst Magazines has snapped up Clevver, a network of female-skewing lifestyle and pop-culture news YouTube channels that had been owned by now-defunct Defy Media. Clevver was left homeless after Defy’s sudden shutdown in November; its principals said at the time they were looking for a new home. Hearst Magazines sees a digital fit with Clevver’s [...]

  • "Brother" -- Episode 201-- Pictured (l-r):

    CBS Interactive's Marc DeBevoise on Streaming Boom, Content Strategy, and Apple

    Not everyone wants or needs to be Netflix to succeed in the streaming space. And not everyone sees Apple’s enigmatic new service as a threat. Even as rival streaming services offer gobs of content, CBS Interactive’s president and COO Marc DeBevoise sees the company’s targeted original programming strategy continuing to attract viewers to its All [...]

  • Rhett-Link-Good-Mythical-Morning

    Rhett & Link's Mythical Entertainment in Talks to Acquire Smosh (EXCLUSIVE)

    Smosh, the YouTube comedy brand left stranded after parent company Defy Media went belly-up, may be about to get a new business partner. Mythical Entertainment, the entertainment company founded by top YouTube comedy duo Rhett & Link, has been in talks about acquiring the Smosh brand, sources told Variety. Multiple potential buyers came forward to [...]

  • Pokemon Go

    Proposed 'Pokémon Go' Lawsuit Settlement May Remove Poké Stops, Gyms

    A proposed settlement in the class action lawsuit against “Pokémon Go” developer Niantic could remove or change a number of Poké Stops and Gyms in the popular augmented reality game. The proposed settlement was filed in a California court on Thursday and applies to anyone in the U.S. who owns or leases property within 100 meters [...]

More From Our Brands

Access exclusive content