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Omdia: Advertisers moving towards TikTok

November 16, 2022

Colin Mann @ Media & Entertainment Leaders Summit

Advertisers are moving away from platforms such as Meta and YouTube towards TikTok, according to Maria Rua Aguete, Senior Research Director, Consumer research Group, Media and Entertainment at Omdia.

Delivering a ‘Global media and entertainment trends’ overview at the Media & Entertainment Leaders Summit in London, Rua Aguete, noted the increasing interest in advertising on platforms, despite figures that suggest pay-TV currently generates more revenues than SVoD or advertising.

However, Omdia predicts that online video advertising will generate over $331 billion in 2027, 2.6X more revenues than SVoD ($127 billion); 2X more revenues than TV advertising ($159 billion).

“Online video (subs and ads) will be worth 20 per cent more than traditional TV (pay-TV + ads),” she advised delegates. “In 2027, TikTok ad revenues will be higher than Meta and YouTube combined video ad revenues. Advertisers want to reach the followers that TikTok has,” she added.

She noted that ad-funded platforms are market leaders worldwide and that TikTok shoots up for under 35s and that social media video viewing is almost equal to online long form. “In the US, TikTok is the most popular social media platform for streaming video,” she said, adding that TikTok poses little threat on the TV screen “at the moment”.

Categories: Advertising, Articles, Markets, Research, Social Media

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