YouTube’s U.S. ad revenue to hit $1.13B: study

According to figures released by eMarketer, U.S. digital ad revenue is booming and the streaming giant will grab an 18.9% market share for 2014.
September 11, 2014

The net U.S. video ad revenue for YouTube will total $1.13 billion in 2014, according to figures released by eMarketer on Thursday.

The company estimates the streaming site will have 18.9% of the overall projected U.S. digital video ad market, which will be up 56% this year, reaching $5.96 billion. While the growth is impressive, the numbers are still small compared those for TV ad spending, which eMarketer projects will total $68.54 billion this year.

The figures cover ads running on YouTube’s video clips, not banners, search and other ads on the site, and they are tallied after the subtraction of traffic and content acquisition costs.

But the forecaster says that while profits from this sector will grow in step with the rest of the industry, the streaming service will not increase its market share significantly in the coming years

The video ad market is growing rapidly, but eMarketer says YouTube’s profit potential is hampered by the inconsistent quality of its content, which is largely generated by non-professionals. But advertisers are attracted to huge volume of users and the pinpoint demographic targeting provided by the platform and its growing stable of multi-channel networks.

EMarketer’s growth projections for AOL and Yahoo focus on digital display revenues from ads accompanying professionally produced “premium” video content. It projects AOL will see its U.S. display ad revenues grow nearly 20% in 2014, bolstered by the success of its ad platform. Conversely, it expects Yahoo’s U.S. display business to drop 3.6% this year, then rebound in 2015.

About The Author
Todd is StreamDaily's U.S. West Coast Correspondent. He has written for a wide range of publications, including The Hollywood Reporter, Variety, the Los Angeles Times, the New York Post, NylonGuys and, yes, even the Weekly World News. Earlier in his career, he served as senior editor for the pioneering alternative movie magazine Film Threat. You can reach him at toddrlongwell[at] or on twitter @toddlongwell1

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