YouTube Leads Video Ad Market Share for 2013

According to a recent report by eMarketer, advertisers have spent close to 6 billion dollars on YouTube in 2013. In fact, the video sharing platform (owned by Google) is expected to bring in 1.96 billion dollars in ad revenue on a global scale for this year. This is a significant increase from 2012 net revenues, a 65.5 percent jump, and is considerably higher than forecasts put out by Wall Street at the beginning of the year.

What this means in the global market is that YouTube has secured a 1.7 percent share of all digital ad revenues worldwide. YouTube’s market share for this year comes in higher than those of Twitter, AOL, Amazon.com, Pandora, LinkedIn, Millennial Media, and other global leaders. On a domestic level, YouTube is expected to bring in 1.08 billion dollars for 2013 in ad revenues. For Google, this is significant, as it amounts to approximately 6 percent of Google’s total net U.S. ad revenues for the entire year.

For 2013, the majority of YouTube’s ad revenues come from video ad sales. In fact, end of the year metrics are predicted to show 850 million dollars of the forum’s 2013 ad revenues in the United States will come exclusively from video ads. This gives YouTube a 20.5 percent share of the overall 4.15 billion dollar U.S. video ad market.

Projections were included in eMarketer’s report and bode well for the future of ad sales for YouTube and Google. Analysts predict that YouTube’s revenues from video ad formats will approach up to 1.22 billion dollars for the year 2014, giving it a 21.1 percent share of the overall market.

This is the first analysis of this kind to be performed by eMarketer, who reviewed hundreds of data points and corresponding studies to determine how much advertisers spent on this particular platform for 2013. Its analysis structure was based on forecasting models stemming from third-party research on YouTube’s ad revenue, ad impressions, rates, usage, partner fees, and other figures.

References

Reitzin, Jared. “YouTube Attracted $6 Billion in Ad Spend This Year.” Mobile Marketing Watch. 12/11/13.

Spangler, Todd. “YouTube to Gross $5.6 Billion in Ad Revenue in 2013: Report”;  Variety. 12/11/13.

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