Facebook vs. YouTube: advertising arms race
The social media site is expected to deliver two-thirds as many video views as YouTube in 2015, according to research firm Ampere Analysis.
Facebook and YouTube are nearly tied in terms of audience size, with
1.4 billion and 1.3 billion monthly active users respectively.
Monthly active users for Facebook and YouTube, quarter by quarter (number 1 on the X axis is Q1 2007 and number …
Competition
will likely lead to increased availability of content as well as surge
in the volume of advertisements, says Ampere Analysis, adding that
“competition for advertising dollars and viewers risks damaging
[YouTube’s] growth prospects."
Despite
Facebook's rapid growth in video, the company has a long way to go to
catch up to YouTube's 756 billion quarterly video views, says Yahoo
Finance Senior Columnist Michael Santoli.
“Facebook video has really been taking everybody by storm,” he says.
“You can't escape the video offering that they have right now, which is
much more tailored. YouTube is responding in part by saying, 'Let's try
to make things more rationalized in terms of how you find videos, and
make them a little more tailored and a little more geared toward ongoing
engaging events.' It's a very interesting fight."
Online video grew by 33% in 2014, faster than any other digital category, research firm ZenithOptimedia reported Monday. Zenith predicts that Internet advertisements will to represent 28% of global ad spending by 2017.
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