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YouTube, FB to corner major ad spend globally over 5 years

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NEW DELHI: New data from UK-based Juniper Research has found that advertising spend on FVoD (free video on demand) content, such as media on YouTube and Facebook, will surge over the next five years reaching $37 billion by 2022. This is up from an estimated $16 billion in 2017.

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 its expanse, a statement from Juniper Research said on Tuesday.
 
The new research, Digital TV & Video: Network and OTT Strategies 2017-2022, found that leading FVoD provider YouTube, which sees over 1 billion hours watched per day, will face increasing competition from social media platforms. It observed that the delivery of live video content via social media channels will be one of the 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.

Said research author Lauren Foye, “This content will increasingly be of interest to advertisers, especially in view of Facebook’s monthly active user base of over two 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.
 
Recent changes to YouTube’s Partner Programme 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 programme, the research highlighted. 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 adspend by 2022.

Juniper Research provides research and analytical services to the global hi-tech communications sector, giving consultancy, analyst reports and industry commentary.

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