Why Twitter introduced the mobile-app install ads program (Part 6 of 7)
Video ads contribute to YouTube’s ad revenue
In the previous part of the series, we discussed how YouTube is becoming a major business for Google (GOOGL), specifically in the U.S. According to the same report from eMarketer, in 2013 YouTube generated about $850 million in revenues from video ads. This means video ads contributed to more than 40% to YouTube’s overall ad revenues in 2013. More importantly, it’s share in the U.S. video ad market was about 21%. eMarketer expects this market share to continue to increase slightly in future.
Increasing mobile usage also helping YouTube’s reach
According to a report from Comscore, Facebook’s (FB) app reach is the highest on smartphones in the U.S. at about 74%. YouTube’s app reach on smartphones is at 50%, which is incidentally higher than Google’s own search application. This signifies YouTube’s growing importance to Google—more than even its core business of search advertising. The report also mentions that Pandora (P) and Gmail are some other apps having more than 40% reach on smartphones.
Netflix leads the video streaming market followed by YouTube
According to a report from Qwilt, Netflix (NFLX) leads the U.S. online video streaming market with a share of about 58% as of March 2014. YouTube comes second at about 17% market share, while Amazon (AMZN) is third at 3% market share. In the last year, Amazon’s aggression helped it pass both Hulu and Apple (or AAPL) in this market. It acquired a few exclusive subscriptions to some popular TV shows and movies, which helped it increase its market share by 5x over the last year.
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