Online video has become one of the rising elements on the net. It is where viewings are increasing and new users are being captured, while the time of permanence and the reproductions grows. Everyone is watching online videos, or so it seems, and therefore brands and companies are already providing as much information as possible to this type of content. Where the audiences are, in the end, are the advertisers. For all this, online videos have been one of the great winners in online advertising in 2020, despite the fact that the year was quite disastrous in general advertising terms.But who is benefiting from this online video boom? Who is taking this boom in revenue and that significant growth in the weight of videos in advertising budgets on the corporate network?
As is hardly surprising in the Kuwait Email List evolution of internet advertising, the online video boom is falling into the hands of the strongest rivals on the market. Facebook and YouTube are making the biggest share of the revenue pie generated by videos.That is what can be drawn as a conclusion, as far as online video advertising is concerned, from the latest Global Online Video Advertising study by Omdia.In 2020, the data from these giants in the online video market has already been impressive. As noted in Advanced Television , Facebook and YouTube function as a duopoly that dominates the online video market. Both services accounted for 49% of all ad revenue generated by the category. That is what happens in the global computation, including all markets.However, that account is not exactly fair, because China distorts the balance.
China is one of the most powerful markets for online advertising, but it is also one in which neither Facebook nor YouTube have an official presence, so they cannot generate income from that market. If China is removed from the account, Facebook and YouTube are already over half of the online video advertising market.Things will continue to improve for the two companies for the foreseeable future. “The duopoly dominance in online video advertising can be seen clearly, with YouTube and Facebook taking a combined half of the market’s revenue over the next four years,” explains Matthew Bailey, Senior Analyst at Omdia. It is expected that by the end of 2024, both companies together will account for 51% of the online advertising market linked to video.The duopoly is also, one could almost say, balanced. Facebook dominates in the ads that are included out-stream, while YouTube is in the AVoD format.Is there room for maneuver for other players?This domain could lead one to think that nothing can be done to keep part of the pie of online video advertising. The conclusions of the study invite us to think in a different way, because the market is very powerful and will grow much more in the coming years.
In fact, 52% of online display advertising in 2024 is expected to be video ads.One of the beneficiaries of the growth of this type of advertising will be the traditional television channels, which in their migration to the Internet will see how they achieve more and more income through this way. Their revenue from online advertising linked to video will go from the 8,000 million dollars with which they closed 2020 to the 19,000 million that are expected by 2024. Of course, this growth will only come if the chains take care of their online video platforms and work on the offer that they launch on those catwalks.In addition, the study also predicts a growth in AVoD, streaming on demand that includes ads (and that has just arrived in Spain). Analysts believe that the players that have already appeared in this market, such as Pluto TV or Tubi, will become material for purchases by the large television networks, while tech giants will enter that market by creating their own. own platforms.