Facebook gaining ground on YouTube in video ads: Report | HT Tech

Facebook gaining ground on YouTube in video ads: Report

Facebook is gaining ground on Google's YouTube as an outlet for big companies to market their products via online videos, the fastest growing category of Internet ads, a report published on Monday said.

By:REUTERS
| Updated on: Jun 22 2015, 15:32 IST
image caption
A-Facebook-employee-walks-past-a-sign-at-Facebook-headquarters-in-Menlo-Park-Photo-AP

Facebook is gaining ground on Google's YouTube as an outlet for big companies to market their products via online videos, the fastest growing category of Internet ads, a report published on Monday said.

The competition for video viewers opens up a new front in the clash between the two web giants that already compete in other types of advertising given their appeal to young and international consumers, Ampere Analysis said in a study.

You may be interested in

MobilesTablets Laptops
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

London-based Ampere predicts a new advertising 'arms race' between the two rivals, neck and neck in terms of audience sizes with around 1.4 billion to 1.3 billion monthly active users, respectively for Facebook and YouTube. That means consumers are likely to be forced to see more ads, but also enjoy a richer range of video programming as a result, it said.

Also read
Looking for a smartphone? To check mobile finder click here.

The Internet will overtake TV advertising in 12 key markets, representing 28% of global ad spending by 2017, separate research by media-buying firm ZenithOptimedia said on Monday. Ad spending is projected to reach $531 billion this year.

Online video is now growing faster than any other digital category or subcategory, rising 33% in 2014, and is forecast to grow 29% a year through 2017, Zenith said.

The two reports were released as the week-long Cannes Lions international advertising conference opens this week.

Ampere Analysis argues that Facebook is morphing from a platform most advertisers use for building general brand awareness to one that can deliver 'pre-roll' advertisements that marketing companies prefer for ensuring their messages are actually viewed.

Currently, YouTube remains a more flexible marketing platform, offering advertisers the full range of video ads which run before, during or after a video programme is shown.

'If the social network's own video ambitions are to be realised, and if it is to convince content owners it is a viable alternative to YouTube, it must deliver comparable returns,' Ampere Research Director Richard Broughton said.

Differences in ad formats translate into the rates the Internet platforms can charge advertisers. While YouTube charges advertisers when an advertisement has been viewed, Facebook offers the less advertiser-friendly model of charging once three seconds of the video have been delivered, Ampere noted.

Most content providers now use Facebook for branding and awareness purposes, but trial revenue-sharing deals with the National Football League and Fox Sports in the United States pose a serious challenger to YouTube's lead, said Ampere, a research firm that serves media companies and investment banks.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 22 Jun, 15:28 IST
NEXT ARTICLE BEGINS