Google's YouTube will generate an estimated $1.13 billion in revenue from video advertising this year -- up 39% from last year, per research firm eMarketer. Although its market share will not substantially increase, the revenue from ads that run on the site -- excluding banners, search and other ads, alongside traffic and content acquisition costs -- will grow.
One of the issues that is hindering growth, eMarketer suggests, is the time that audiences spend with digital video on YouTube. Advertisers don't find the time spent on site to be useful. The clips are either too short to include ads or not brand-friendly, and both are attributes of many user-generated YouTube videos that get the most views, per the research firm.
It takes site traffic to generate revenue growth.
Millward Brown Digital released numbers recently that suggest YouTube had nearly 167 million unique visitors to the site in August 2014 -- up 2.71% from the year-ago month. The numbers from its Top 50 U.S. site ranking, based on the digital behavior of some 2 million consumers estimates, rival Facebook, which generated 168 million unique site visitors in August 2014, per the research firm.
The numbers suggest that YouTube fails to monetize the majority of its traffic, per eMarketer. On the upside, per the research firm, "advertisers like the volume of users and variety of content on YouTube, and the growth of various channels on YouTube, focused on topics such as beauty tips and gaming, gives advertisers that want to deliver relevant ads to those audiences a very well-targeted reach.
eMarketer forecasts that AOL and Yahoo will increase digital display revenue from ads placed against premium video content, including full-length shows, digital shorts and other professionally produced programming.
AOL U.S display ad revenue should grow nearly 20% in 2014, eMarketer estimates, pointing to the success of the Adap.tv ad platform. While AOL continues to improve, Yahoo's U.S. display business continues to decline about 3.6% this year. eMarketer is looking for a positive return in 2015.