Dive Brief:
- YouTube revenues from top retailers’ digital video ad spending will continue to grow at least through next year, according to eMarketer.
- Revenue growth on Google’s video channel is expected to reach $1.99 billion, with year-over-year growth slowing to single digits.
- Brands such as Wal-Mart, Target, and Walgreens increased their spend on YouTube throughout 2015, while Lowes, Home Depot, and CVS decreased spend.
Dive Insight:
YouTube is still a powerful platform and revenue generator for Google parent Alphabet, but growth is slowing with competition from Facebook, Twitter, Vimeo, and other outlets. The channel is expected to post $1.88 billion in revenues this year (up 20.7% from 2014), and $1.99 billion in 2017 (up just 6.2%).
The channel still boasts the largest share of branded video and advertising among leading retailers, but that, too, will slip to 17.7% in 2017, according to an eMarketer analysis, from 19.6% in 2016 and 20.0% in 2015. The shoppable videos YouTube introduced in 2015 likely led many brands to increase spending temporarily.
Wal-Mart, Target and Lowes spent the most on YouTube, with Wal-Mart and Target ramping up spend throughout the year to reach $2.6 million on $1.9 million, respectively, in the fourth quarter of 2015. Other chains such as Amazon, Home Depot, Lowes, and CVS cut YouTube spend in 2015, with Amazon slashing its spend from $1.7 million in the first quarter to $162,000 in the fourth.
