Facebook’s Streaming Video Success Will Lead to a Lucrative 2017

“Facebook’s users are increasingly captivated by videos on the platform—not just on Facebook but on Instagram, as well,” says eMarketer forecasting analyst Monica Peart. “Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm.”

eMarketer today released its latest forecast on U.S. ad spending, and it sees double-digit growth coming for Facebook and Google: Google will grow by 14.8 percent in the U.S. this year, but Facebook will jump by 32.1 percent—much of that due to its success with video. While Facebook will pull some ad spending away from Google, Google still leads in search.

“Google’s dominance in search, especially mobile search, is largely coming from the growing tendency of consumers to turn to their smartphones to look up everything from the details of a product to directions,” Peart adds. “Google and mobile search as a whole will continue to benefit from this behavioral shift.”

As the chart below shows, U.S. video ad spending is projected to grow to $22.18 billion in 2021, up from $13.23 billion this year. The year-over-year percentage change for that growth will taper off to 12 percent as the area matures.

Google and Facebook will dominate the U.S. ad mobile ad market, with Google owning nearly one-third (32.4 percent) and Facebook owning nearly one-quarter (24.6 percent).

Look for Snapchat, now a public company, to have an “explosive” year ahead, eMarketer advises. Its U.S. ad revenue will shoot up $157.8 percent to $770 million. Snapchat will still own only a small piece of the U.S. mobile ad market with 1.3 percent, a figure that will grow to 2.7 percent in 2019.

Which company is in for a poor year? Twitter. eMarketer has lowered its outlook due partly to flat user growth. Twitter’s ad revenue in the U.S. will shrink 4.7 percent this year to $1.3 billion, although its worldwide revenue will grow by 1.6 percent.


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