Everyone is focused on digital video these days. Facebook (NASDAQ:FB) is investing hundreds of millions of dollars in an effort to compete with Alphabet’s (NASDAQ:GOOG)(NASDAQ:GOOGL) YouTube. Meanwhile, Twitter (NYSE:TWTR) and Snap (NYSE:SNAP) are partnering with major media companies to produce video content for their respective platforms and share revenue. Not to mention the increasing budgets from companies competing in premium streaming video.
Ad-supported video streaming is becoming increasingly popular. Roku’s management says it’s seeing a shift in time spent on its streaming platform toward free ad-supported channels. Meanwhile, Amazon is working on an ad-supported streaming service, while Hulu and others continue to operate a hybrid subscription-plus-advertising model.
The growing popularity in video has led to an estimated 30% increase in digital video advertising spending in the U.S., according to eMarketer. Overall, video ads account for about one-quarter of all digital advertising in the country. Facebook is absolutely dominant in the space, accounting for 25% of digital advertising revenue this year.