Facebook, YouTube account for nearly half of online video ad revs in 2020 | Media Analysis | Business
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Driven by the post-Covid-19 online video consumption surge that is here to stay, global online video advertising revenue will grow from $70 billion in 2020 to $120 billion by the end of 2024 according to the latest Omdia latest Global Online Video Advertising report.
Omdia vi ads 18Feb2021
Although the advertising market was impacted by the economic and pandemic-driven headwinds during 2020, the analyst says that the online video advertising segment remains on a high-growth trajectory. Drilling down into where the income will be sourced, Omdia found that video, including in-stream and out-stream, will account for 52% of online display advertising revenue by the end of 2024, growing from 47% in 2020.

The study revealed that Facebook and YouTube’s duopoly of online video advertising revenues continued in 2020, when they combined to account for 49% of total revenues. Excluding China, where YouTube and Facebook have no official presence, YouTube and Facebook already comfortably account for over half of global online video advertising revenue. Omdia forecasts that by the end of 2024, Facebook and YouTube will have increased their share of the online video advertising market to 51% on a global basis.

While most of Facebook’s online video ad revenue comes from out-stream video ads, YouTube is a dominant force in the ad-supported video-on-demand (AVOD) segment, with all of its video ad revenue coming from in-stream video ads on its website and app.

Looking out over the next four years, Omdia expects broadcast groups will increase their online video ad revenues from $8 billion in 2020 to $19 billion by the end of 2024, growing their share of the total market by 4 percentage points to reach 17%. This growth it says will come as broadcasters continue to invest and develop their own video platforms and consolidate the direct-to-consumer ad-supported video space and as more TV and video consumption moves online, especially on connected TVs.

“The duopoly’s dominance of online video advertising is clear to see, with YouTube and Facebook combining to take over half of market revenue over the next four years,” said Matthew Bailey, senior analyst for advertising and games at Omdia, commenting on the research.

“However, this is not to say there will not be significant growth opportunities for other players in the space… Ad-supported online video players will also emerge and expand across the globe between now and 2024. The biggest standalone AVOD players will, as we’ve already seen in the US with the acquisitions of Pluto TV and Tubi, become key acquisition targets for major broadcasters. Meanwhile, other tech giants – most notably Amazon – will also more aggressively target the online video advertising market over the coming years.”