By 2027, TikTok’s global advertising revenue will surpass the combined ad revenues of Meta platforms and YouTube, and Netflix will have won a small but growing share in the online video advertising space, projects Omdia.
The researcher’s new global and media entertainment trends report estimates that global online video advertising will rise from $189 billion in 2022 to $331 billion in 2027 — exceeding subscription video-on-demand revenues of $127 billion by 2.6 times, and TV advertising’s $159 billion by 2 times.
TikTok is projected to increase its share from 15% to 24%, and its Chinese Byte Dance-owned sibling app Douyin is projected to up its share from 7% to 14%. Combined, their share will rise from 22% to 37%, Omdia Senior Director Maria Rua Aguete reported during the Media & Entertainment Leaders Summit in London.
TikTok is already the most popular social platform for streaming video in the U.S., and is positioning itself to become a competitor for TV-screen time, Aguete noted. Advertisers are expected to continue to shift spend toward the platform and away from the other big social video platforms due to its appeal to the under-35 demographic in particular.
Meanwhile, Meta’s share is expected to decline from 16% to 12%, and YouTube’s from 15% to 12%, and the combined shares of “other” apps are projected to decline from 47% to 36%.
Netflix’s just-launched ad-supported tier is projected to take a 2% share of global online video ad dollars within the five-year period.