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Ad spend on free VoD to jump to USD 37 bln by 2022

Tuesday 30 January 2018 | 13:57 CET | News
Advertising spend on Free Video on Demand (FVoD) content, which includes media on YouTube and Facebook, is expected to jump to USD 37 billion by 2022, from an estimated 16 billion in 2017, according to the latest study from Juniper. The number of unique users for FVoD will also rise over the five-year period, to just under 4.5 billion by 2022, as free video media continues expanding. 

Leading FVOD provider YouTube, which records over 1 billion hours watched per day, will face increasing competition from social media platforms. The delivery of live video content via social media channels will be one of the growth areas this year, as users increase the volume of live broadcast content posted to these platforms. Examples include Instagram, which has over 800 million monthly active users, and Snapchat which has 178 million daily active users. 

This type of content will be of increasing 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 seen passing 840 Exabytes by 2022. 

Meanwhile, 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.



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