US brands will spend $10.35 billion on social video ads in 2019, according to new estimates by eMarketer. Social will account for 28.7 percent of all video ad spend.
Spending on video ads in the US will grow at a rate of 44 percent between 2019 and 2021, eMarketer predicts, ultimately reaching a total of $14.89 billion—30.4 percent of the total video ad spend.
Overall video ad spending will increase, as well, at a rate of 62.1 percent between now and 2023. Video now accounts for a quarter of US digital ad spend.
While eMarketer names Facebook and YouTube as dominant players, they admit that YouTube is not factored into these social video ad estimates. Last year, eMarketer estimated that YouTube would generate $3.36 billion in net US video ad revenues, although it does not consider YouTube to be a social network.
Google keeps its YouTube revenue figures close to the chest, but analysts theorize it could have been around $20 billion for 2018 alone.
EMarketer previously stated that Facebook would capture nearly one-quarter (24.5 percent) of all video ad spending in the US for 2018, bringing in a healthy $6.81 billion (including Instagram).
By comparison, eMarketer says that Twitter’s US video ad revenues will pass $1 billion in 2021. Twitter has placed a strong emphasis on video to its investors and advertisers over the last few years. In a Monday blog post, Twitter announced that video is its fastest-growing advertising tool. The platform sees around 1.2 billion video views daily, which is 2x growth in just 12 months.
The push for video, as well as a string of exclusive streaming partnerships, may account for Twitter’s anticipated payoff.
Snapchat, meanwhile, is expected to grow its US video ad business 19.9 percent year over year in 2021, reaching $727.4 million. To put that into perspective, Roku is expected to earn $758.4 million in US revenues by the same year.
Snapchat finally crossed the $1 billion revenue mark in 2018. Like Twitter, Snap is touting video as a profitable sales tool. The company reported that in the fourth quarter, its premium mobile video ads reached over 70 percent of 13- to 34-year-old US consumers every month.
EMarketer’s predictions do not include videos that brands have created for their own channels. A report by Mobile video production company Magisto estimated that American brands would spend $135 billion on digital video in 2017. This figure included the cost of video capturing, creation, hosting, distribution, analytics and staffing.