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Facebook and YouTube account for 49% of online video ad revenue in 2020

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Global online video advertising revenue will grow from $70bn in 2020 to $120bn by the end of 2024 according to Omdia’s latest Global Online Video Advertising report.

Driven by the post-COVID-19 online video consumption surge that is here to stay, 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. Although the advertising market was impacted by the economic and pandemic-driven headwinds during 2020, the online video advertising segment remains on a high-growth trajectory.

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.

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.

Over the next four years it is expected that broadcast groups will increase their online video ad revenues from $8bn in 2020 to $19bn by the end of 2024, growing their share of the total market by 4 percentage points to reach 17%. This growth will come as broadcasters continue to invest and develop their own video platforms and consolidate the direct-to-consumer ad-supported video space.

Matthew Bailey, senior analyst for advertising and games at Omdia, commented: “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. However, this is not to say there will not be significant growth opportunities for other players in the space. Broadcasters will continue to take a bigger piece of the pie as they continue to bolster their online video and advertising offerings as more TV and video consumption moves online, especially on connected TVs.”

Bailey adds: “Other 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.”

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