YouTube Alone Brings In 20% Of Digital Video Ad Revenue

YouTube Alone Brings In 20% Of Digital Video Ad Revenue


When it comes to ad dollars moving into the red-hot online video market, YouTube is king. But it’s feeling pressure from potential digital usurpers.

YouTube will bring in $1.13 billion in 2014 video ad revenue, or 18.9% of the overall U.S. digital video ad market, according to a new report from research firm eMarketer. While that puts the Google-owned video site on top, eMarketer expects that YouTube will not be able to increase its portion of market in the coming years given a few key challenges.

First, not all YouTube channels are created equally. Only some carry the kind of content that specific advertisers want to market against, eMarketer notes. Yes, there are content creators like AwesomenessTV, a teen girls-focused YouTube network that recently partnered with Kohl’s. In an effort to better reach a younger audience, the department store will launch branded content and a new clothing line with the help of the YouTube network. But while Kohl’s may have seen an opportunity in AwesomenessTV, much of the content on YouTube is either too short or “not brand friendly” enough for marketers, according to eMarketer’s analysis.

Moreover, rivals like Yahoo threaten to outflank YouTube as they invest more heavily in “premium” content, the video buzzword that essentially means “long and well-produced.” For example, Yahoo decided to pick up the previously cancelled NBC show “Community” for a sixth season on its streaming-video site.

For digital video competitors, the stakes are rising. Digital video ad spending will total almost $6 billion this year, up 56% from 2013, eMarketer predicts. However, the research firm also notes that much of premium digital video market remains untapped because services like Netflix and Amazon Prime do not rely on ads.

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