Online video advertising spend is set to increase 30% to $27.82 billion in 2018, according to eMarketer’s latest forecast. The research firm predicts that video ads will make up 25% of US digital ad expenditure.
Broken down by individual social media companies, Facebook is predicted to take 24.5% of total video ad spending at $6.81 billion with an estimated share of 87%. Double digit growth for Facebook is forecast through to 2020.
“In-feed video has been a successful ad format for both Facebook and Instagram,” said Debra Aho Williamson, an eMarketer principal analyst. “Marketers rely on in-feed video ads to capture users’ attention and build brand awareness. A newer video ad format, in-stream advertising in Facebook Watch shows, is still relatively new, but we think advertisers will increase their usage of it because it is similar to linear TV advertising.”
Snapchat US video revenues are likely to reach $397.3 million in 2018, up 19% over 2017. eMarketer predicts that video will be a core driver for Snap’s business to 2020, representing 60% of its US ad business alone.
Meanwhile, Snapchat’s share of social video spend will be 5.1% in 2018.
Twitter will be getting 55% of its total US ad revenues from video in 2018, with revenue growing 12% to $633.3 million in 2018. This brings Twitter’s share of US social video ad spend to 8.1%.
Lastly, YouTube is set to generate $3.36 billion in video ad revenues in the US in 2018, marking an increase of 17.1% over 2017.
73% of its ad revenues are now coming from video in the US.