Is Facebook Gaining on YouTube’s Video Ad Lead?

By Tim Maytom

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Google’s YouTube has long been the king of online video advertising thanks to its massive collection of user generated content and variety of pre-roll formats. However, two new reports suggest that Facebook may be gaining ground on YouTube when it comes to video ads.

Facebook and YouTube have similar numbers of monthly active users (1.4bn and 1.3bn respectively) and a new report by Ampere Analysis is predicting an advertising “arms race” between the two platforms, as they seek to expand their video ad offerings and chase the same young, international consumers.

While YouTube holds a clear advantage in terms of quarterly video views, with 756bn in Q1 2015 compared to Facebook’s 315bn, Facebook is growing fast, having increased from just 77bn in Q3 2014, while YouTube’s growth has slowed considerable.

In addition, Facebook has the upper hand when it comes to average revenue per user, with 2014 figures showing $0.73 (£0.46) per monthly active user for Facebook, while YouTube brought in only $0.28.

Meanwhile, a report by ZenithOptimedia suggests that digital advertising spending will overtake TV ad spend in 12 key markets by 2017 as online and mobile video increase dramatically. Ad spending is projected to reach $531bn this year, …read more

Source:: Mobile App News