Juniper Research: Video Advertising Spend on YouTube & Facebook to Grow by 130% in Just 5 Years

BASINGSTOKE, England–(BUSINESS WIRE)–New data from 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 5 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.

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OTT’s Push Live Content

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.

Research author Lauren Foye explained: “This content will
increasingly be of interest to advertisers, especially in view of
Facebook’s monthly active user base of over 2 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.

Pressure from Advertisers

Recent changes to YouTube’s Partner Program 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. 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 ad spend by 2022.

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

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