YouTube Revenue To Hit $1.13 Billion From Video Advertising This Year

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.

1 comment about "YouTube Revenue To Hit $1.13 Billion From Video Advertising This Year".
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  1. Trung Ho from ASU, September 14, 2014 at 3:30 a.m.

    YouTube has become one of the most powerful social media marketing tool. There’s a pretty good chance that our business’s target market is watching videos on YouTube. As a local business, we can target our specific geographic area, so we only reach prospective customers in your city or town. We are able reach the right users with relevant video content in the form of display ads appearing throughout the website and search, overlay in-video ads located at the bottom of the video, in-stream ads that play before, during or after another video is played. It is essential that we should have strong understanding of the intent of those who want to watch our video ad. We have about five seconds to impress someone so that they would choose to watch the rest of our video before they skip our ad. It’s important to surprise a person by quickly catching their attention with our video ad through an offer or exclusive information. Because we only have few seconds, so we need to focus on clearly defining what value users will take away from watching our video. The purpose that we use YouTube videos advertising is to drive our audience to interact with our business. At the end of our video, there should be a call-to-action, either written or verbal, that tells our audience what specific action we would like them to take. In addition, we also need to include the name of our business, logo, links to our website, phone number, and an email address for contacting purposes.

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