nScreenMedia OTT multiscreen media analysis

The rise and rise and social video

Average revenue per MAU social versus TV 2017

Television has always been the preferred platform for video advertisers to reach their target audience. But new data shows that, in three important dimensions, TV is under serious attack.

Social ad values approach TV levels

According to new research by Ampere Analysis, the average advertising revenue per user (ARPU) at Facebook has grown from $3.30 per quarter in 2012 NA and Europe ARPU TV vs Facebook 2012 2014to $19.28 in 2016. TV viewer ARPU has increased from $47 to $48.20 over the same period. In Europe, the increase relative to television has been even higher. In 2012 advertising ARPU was $1.45 (14% of TV), growing to $5.86 in 2016 (53% of TV.)

According to Ampere Analysis it is video ads that are driving the big increases. Auto-play (where the video ad automatically starts to play when it scrolls into view) was a crucial innovation.

Ampere Analysis says Google (primarily through YouTube) is closest to TV ad valuation. It currently makes $7 each quarter per monthly active user (MAU.) TV delivers $10-$11 per quarter per MAU. Facebook delivered $5 per quarter per MAU in ad revenue, and Snapchat delivers $0.70.

Prime time goes online

Whether YouTube is officially a social platform or not, it is where the most people come to see, share, and comment on videos. And that activity is increasingly occurring during TV’s most popular timeslot, prime time.

According to Google, more 18-49-year-olds visit YouTube than any TV network during prime-time hours of an average day. The company goes further, saying that is true even if you only consider mobile accesses. This is not surprising when you consider that more than half of YouTube views come from mobile devices.

YouTube has become a very important platform for the television industry. Google says that watch time of TV channel programming on YouTube has increased 50% in the last year. And much of this viewing could be occurring on the television, since the watch time of YouTube content doubled on TV screens in the last year.

Considering this data, it is probably not surprising to find that advertisers are enamored with social media platforms.

Advertisers favor social platforms online

A new study performed by Advertiser Perceptions for Trusted Media Brands, Inc. found that social media platforms like Facebook, Snapchat and Twitter are the preferred online video ad outlets for advertisers. Of the 310 media decision makers participating in the April 2017 study, 68% said they believed social platforms are the most important partner for digital video campaigns. That represents a 12% increase over last year.

The participants gave social the highest marks for engagement (59% of respondents), return on investment (39%), and customer service (38%.) Given the heavy focus on social media, it’s not surprising that 58% of survey participants plan to invest in short-form video, versus 38% in premium video at TV sites like Hulu.

Why it matters

TV ad values have seen only small gains in the last year in North America and Europe.

Meanwhile, social sites like Facebook and Snapchat ad values have been exploding.

Usage of YouTube during prime time now exceeds any TV network during prime time.

Advertisers increasingly favor social platforms online over other video sites and platforms.

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