In the marketing world it seems that video is the killer medium. YouTube was seen to have a lead in the video advertising market that couldn’t be overtaken, but it seems that claim is now false.
YouTube provides a platform for content creators to gain attention, driving ad dollars, but it only has $4billion in annual revenue. Although it has created some online stars, it barely manages to break even.
If brands want success through video, then YouTube isn’t necessarily the obvious choice anymore. Facebook is growing and its network of channels are going to make a big splash in the video advertising world.
Facebook’s user base is 50% larger than YouTube’s with over 1.5 billion active users. These users also already watch 4 billion videos daily.
Facebook enables personalized video at scale. When it’s personalized it really strikes a chord with consumers, who then go on to actively engage with that video content on Facebook.
They promote and share videos too in a way that wasn’t happening with YouTube.
60% of Facebook users also state that they is it as their primary news source, and the more they keep coming back, the more video they’re going to be watching.
75% of Facebook videos are also viewed on mobile phones, compared to just 50% of YouTube videos viewed on mobiles.
Remember that Facebook also owns Instagram which has a user base of over 300 million. Instagram last year also introduced video advertising, with results that have already exceeded expectations.
Facebook also own WhatsApp too, which is closing in on 1 billion users, and Oculus VR, which has huge potential to becoming the most immersive video advertising platform ever.
Another key tool which pushes Facebook ahead of YouTube is its identity based targeting. Facebook knows a lot of information about its users. Their age, gender, as well as various other information are available as different targeting options. This is a much more accurate way of targeting. Advertisers with Facebook are able to categorize audiences and pair them up with personalized video content.
Although Facebook is just getting started and sinking its teeth into the world of video advertising, the results so far have been extremely impressive. The avenues of distribution it has at its disposal too with Instagram and others, is something that YouTube won’t be able to match.
YouTube won’t be standing still though. They have already announced a mobile redesign for its app which will allow mobile users to watch videos in vertical mode. This means that there will no longer be a small video lined with black rectangles.