Video ad spend on social media in the US is set to reach $14.89 billion in 2021, up 44% from 2019, according to a new forecast by eMarketer.
The research firm predicts that social video ad spend will account for 30.4% of total video ad expenditure.
The findings come at a time when video is beginning to move to the forefront of consumed media on many social media platforms such as Facebook, Snapchat and Pinterest. Indeed, social networks are making considerable investments in bolstering their video options and video ad opportunities.
The forecast further predicts that overall video ad expenditure will grow 62.1% until 2023 with YouTube and Facebook dominating the space.
Although Twitter and Snapchat may be smaller players, their US video ad revenues are still significant. For example, Twitters’s video ad revenues in the US will reach $1 billion in 2021, whilst Snapchat is predicted to reach $727.4 million, similar to Roku’s $785.4 million by 2021.
“Video has taken centre stage on social platforms that were once text- or photo-centric—including Facebook, Instagram, Twitter, Snapchat, even Pinterest,” said Paul Verna, an eMarketer principal analyst. “Not only do younger users spend growing amounts of time watching video on these platforms, but they also share clips among their followers, potentially amplifying brand messages.”
Indeed, among younger viewers including millennials and Gen Z, social platforms are popular destinations for watching video content, spending 54% of their daily video time on social apps according to VidMob. YouTube accounted for 25% of that share.
Video also holds great power when it comes to engaging ads with 76% of adults having previously made a purchase after watching videos. Meanwhile, 66% of millennials engaged with brands after seeing their videos on social media.