US Video Snapshot

Industry research firm eMarketer has released a report showing the two predominant ways companies make money in the US digital video market: advertising and subscriptions.

Social-based platforms YouTube and Facebook are described as leaders in video advertising, with 60% of all digital ads purchased programmatically, that is, via a computer program.

The transition to video programmatic ad purchasing is happening at light speed. eMarketer said US advertisers spent $6.18 billion on programmatic digital ads in 2016, up from $3 billion in 2015 or 39% of all digital ad spending, and predicts that programmatic digital ad spending will reach $10.65 billion, or 74% of all ad spending, by 2018.

Meanwhile, eMarketer noted, SVOD services such as Vimeo, Hulu and Amazon “have doubled down on subscription-based approaches.” Vimeo announced a video subscription plan in November, and in August Hulu said it would discontinue free access in favor of ad-free $11.99 monthly and $7.99 limited commercial plans.

You can read more here. The entire report, “Q4 2016 Digital Video Trends: Monetization, Audience, Platforms and Content,” is available to eMarketer PRO customers.

About Larry Greenberg

A former local beat reporter and film critic, co-founder Lawrence Greenberg has more than 25 years’ experience as a writer and public relations executive.

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