Today US digital ad revenue is $68.9 billion with annual growth of 8%. In 2021, it will reach nearly $100 billion. According to an interview with Dan Rose by Poynter, Facebook VP of Partnerships, Facebook is introducing new ad formats and analytics strategies to persuade publishers to post more content.

 

In fact, sooner rather than later Facebook will be a substantial source of income for publishers. Facebook’s moves, mentioned below, make the platform more competitive and attractive to them.

Facebook average revenue per user

Instant Articles

  • Expanding readership.Instant Articles publishers have 25% jump in articles’ readership in the US and Canada just over the last 18 months. According to the Facebook’s interview to BI Intelligence, there are more than 1,000 publishers worldwide who are partners of Facebook Instant Articles. Thus publishers post thousands of Instant Articles daily in a number of languages across the world.
  • Launching new ad formats. Instant Articles will support larger ad units and, moreover, within Instant Articles, Facebook is now supporting video and carousel ads via Facebook’s Audience Network. So, publishers have about 70% of the revenue on Instant Articles using Facebook’s ad network.

Branded content

  • Increasing flexibility.  Facebook officially sanctioned branded content on its platform in April. But now it is expanding the format, and as a result, publishers can tag more than one sponsor in a post. Now the revenue from sponsored branded content is about $3.3 billion and analysts of BI Intelligence promise that by 2021, it will enlarge up to $12.6 billion in the US.

Monetizing video

  • Facebook’s “Suggested Videos” offer to publishers presupposes that users have one ad for every few videos watched consecutively. Video creators get 55% of the revenue from these ads.
  • Pausing publishers’ live videos with “ad breaks” is a very promising move of Facebook. It is going to apply the ad break to regular, non-live videos next year.

Marketing Tendencies

There is a tendency of the digital marketing: consumers are increasing their time spent watching digital media, while publishers are increasing their ad budgets into digital platforms. Interestingly, the US digital advertising industry will reach nearly $100 billion in 2021 in annual income. The reason is that ad is ‘migrating’ from TV to digital video entailing the continued increase of social spending.

Consumers are spending more and more time on digital media and brands are increasing their budgets to digital ad formats, especially to digital video. As 2016 survey shows, two-thirds of 400 US ad agencies and marketers are planning to increase spending on digital video the next year. Moreover, the mobile and tablet formats of digital advertising will become of primary importance for advertisers. However, there is a huge so-called ‘opportunity gap’ between the fast growth of mobile technologies and the relatively small share of ad budgets which publishers are trying to overcome. In fact, mobile is set to eclipse desktop ad spend by 2018.

 

BI Intelligence Report

Dylan Mortensen, senior research analyst for BI Intelligence, has compiled a detailed report on U.S. digital media ad revenue. He shows in detail what revenue trends and the key growth drivers in digital ad revenue today are and what we should expect over the next five years.

Here are several key points from the report:

  • Today US digital ad revenue is $68.9 billion with annual growth of 8%. Thus in 2021, it will reach nearly $100 billion.
  • Mobile is going to become the top destination for digital ad spending. Advertisers attempt to close the “mobile opportunity gap.”
  • Digital video advertising is growing faster and faster, consumers spend more time online via phones and tabletsRevenue is expected to rise to $23 billion in 2021.
  • Social advertising in all formats will be among the keys of digital ad growth in the next five years.Social ad revenue will increase to $30.8 billion by 2021 (now it’s $15.5 billion).
  • Artificial intelligence, AR / VR, and sponsored content will help to drive further digital ad growth.

To sum up, in the report BI Intelligence highlights the rising popularity of digital media with consumers and brands, explores why digital video advertising growth will exceed all other formats over the next five years, and outlines technologies that will help propel ad growth.

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