Traditional TV stations have been dominating the commercials space for years, generating millions of dollars if not billions all in the process of airing adverts for top brands. That is set to change as some of the big e-marketers shift their attention to social media networks that are turning out to be reliable for ads campaigns, thanks to their huge user base. Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) are now flexing their muscles ready to accrue millions of dollar from digital video ads.
Push For Digital Ad Revenues
Verizon has already given the clearest of indications that it is ready to take on the other players in the video ads business with the acquisition of AOL. The giant wireless company is looking to leverage AOL’s video technology as it looks to immerse itself more in the business of selling ads. Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) will be looking to accrue a good share of the $7.77 billion set to be spent on digital video ads by marketers this year alone.
The growth in mobile video ads does not mean the demise of television commercials in entirety, but at the rate it is growing, cable stations should experience a decline in revenues in the years to come. Facebook Inc (NASDAQ:FB) has already topped nearly 4 billion in daily video views, an indication of how fast the trend is gaining traction.
YouTube’s Threat
Facebook demographic data should play a key role in it raking as much as $ 1 billion from digital video ads according to Cowen and Co. estimates. Twitter Inc (NYSE:TWTR) and other microblogging site are also expected to accrue a substantial amount of revenue from the business. Competition in the digital ad space is however expected to come from YouTube, which continues to attract huge spending from big e-marketers.
YouTube holds the upper hand in that unlike the likes of Twitter and Facebook Inc (NASDAQ:FB), people go to the platform in search of videos while the rest try to balance between airing videos and not annoying some users.
