YouTube and Facebook account for the majority of online video advertising in Europe, but the vast bulk of video advertising still goes to television, according to a report by the European Audiovisual Observatory.
According to the report, Online Video Sharing: Offerings, Audiences, Economic Aspects, which cites a number of third-party data sources, YouTube and Facebook together take a 56% share of the European online video advertising market. In 2018, YouTube took an estimated 32% of the market, with Facebook taking a 24% share. Broadcasters took a 20% share of the market collectively.
Despite the dominance of YouTube and Facebook in online video advertising, the vast bulk of video advertising – 91% – went to television in 2016. However, the growth rate of the online video advertising market is much higher than that of the TV ad market – 21.4% between 2015-16 compared with 2% for the TV advertising market and 11% for the overall online advertising market.
The report also noted that 6-15 year-olds in the UK spend about 20% of their screen time watching online video clips, compared with about 45% watching broadcast TV, 12% watching recorded TV, 6% watching catch-up TV and 10% watching paid for streaming or download services. Over 16s, by contrast spend 63% of their screen time watching broadcast TV, 17% watching recorded TV, 6% watching catch-up TV and 6% watching paid for streaming or download services, and only a very small amount of screen time – 2.9% – watching online video clips.
YouTube is used at least once a month by 93% of western European consumers, according to the report.
Despite the growth on online video and the rise of SVOD, the report cited Recode data from 2017 that shows traditional media companies still account for the bulk of expenditure on original non-sports content, with the top four spenders – NBCUniversal, Time Warner, Fox and Disney all being traditional players, led by NBCUniversal, which spent US$10.2 billion. Netflix comes in at number five with expenditure of US$6.3 billion, while Amazon is number seven with US$4.5 billion. Among technology and social media companies, Apple and Facebook were the top spenders, coming in at number 13 and 14 with spend of about US$1 billion apiece.
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