PR98882

LONDON, Nov. 18, 2022 /PRNewswire=KYODO JBN/ --

New research from Omdia shows online video advertising will generate over

$331bn in 2027 and 37% of those revenues will belong to just one company,

TikTok.

Photo - https://mma.prnewswire.com/media/1950460/OMDIA_TikTok_ad_revenue.jpg

"Advertisers are beginning to move away from META and YouTube and towards

TikTok to reach their vast follower base," said Maria Rua Aguete Senior

Director in Omdia's Media and Entertainment practice group.

"In the USA, TikTok has overtaken other social media platforms to become the

most popular place to watch videos. Our trackers for social media viewing time

show that consumers spent more than half an hour on TikTok in 2022. Last month,

our research showed TikTok leapfrogged Netflix to become the second most

popular app in the US, with only YouTube retaining the crown for under 35s

viewing."

TikTok reached a critical mass very quickly and has become popular with the

young consumer market, a sought-after demographic by advertisers. This market

has been traditionally hard to reach via channels such as traditional linear TV

and other social networks.

According to Omdia research, the sector is heading for a positive trajectory

with total global media revenue expected to surpass a trillion dollars by 2027.

Following suit across the globe, TikTok has been very successful in China with

ecommerce integration. This activity is expected to continue with the platform

seeking to recreate in other regions across APAC by establishing partnerships

with regional ecommerce players.

A closer look at the research shows that Netflix will generate $7.4bn in

revenues in 2027, equating to 2% in the online video advertising market.

Meta on the other hand has not fared well from Apple's privacy restrictions

implemented last year. Advertising on Meta lost its effectiveness which caused

many brands to divert their advertising budgets elsewhere.

Aguete concludes: "TikTok's journey has been very interesting and it's clear

that their model works. This is a platform which offers a huge audience reach

and potential to advertisers which cannot be ignored."

ABOUT OMDIA

Omdia, part of Informa Tech, is a technology research and advisory group. Our

deep knowledge of tech markets combined with our actionable insights empower

organizations to make smart growth decisions.  Fasiha Khan / T: +44 7503 666806

/ E: Fasiha.khan@informa.com / W: www.omdia.com

SOURCE  Omdia