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Facebook Video’s Growth Gives Google Managers Sleepless Nights

May 19th, 2015

Facebook Videos Compete YouTube We look at comScore video data for Google’s YouTube and Facebook, and also review who is winning the neck-and-neck race for the title of top online video ad platform. Video monetization remains a key theme for the Facebook and Google. Given the growing importance of video content to each company’s monetization model, we thought we would review Facebook and YouTube’s video metrics.

According to video ad solutions firm Mixpo, Facebook will overtake YouTube as the go-to video platform for advertisers in 2015. Given Facebook’s summer push in video and the subsequent mass adoption by users, we are not surprised that Facebook and YouTube are now also neck-and-neck in total videos viewed per month. This should bode well for advertisers, as there has been supply constraint and greater inventory should enable increased targeting accuracy and higher ROI.

Facebook is now seeing more video views per user, while YouTube is the clear leader in Total Minutes viewed. These last two metrics are attributable to video duration, where Facebook skews towards short-form video and YouTube skews more towards mid-form content. The monetization gap between Facebook and YouTube remains significant, as YouTube monetizes 1 in every 145 viewing minutes, while Facebook monetizes 1 in every 20,283 viewing minutes. In our view, Facebook’s video monetization potential remains substantial given the CPM premium for video ads over standard display, the social network’s low video ad load, and the current lack of pre-roll inventory. Overall, we see both video platforms as sources of significant future revenue for each company, but given Facebook’s momentum and under-monetized inventory. We believe that the social network could surprise everybody by the end of this year, especially managers and executives in MountainView.

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