Welcome to the latest edition of State of the Screens.  

Estimated reading time: 3 minutes [593 words]

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Onward,

Michael Beach
CEO, Cross Screen Media

1. Screen Wars Podcast: Madhive’s Joe Marino on TV Sellers’ Transition to Digital Video

Today I am joined by Joe Marino.  Joe is currently Senior Vice President of Strategic Account Sales @ Madhive.  Before Madhive, Joe made stops at both Adobe and MediaMath.

We discuss:

1) The third renaissance of television

2) How Madhive is powering the local marketplace

3) Challenges of convergent TV budgeting/transacting

Enjoy! 

2. YouTube’s Earnings Hard To Watch

Three big questions re: YouTube:

1) How much advertising revenue did YouTube generate last year?

2) Why did advertising revenue growth decelerate?

3) What share of total TV time does YouTube account for?

Big question #1: How much advertising revenue did YouTube generate last year?

YouTube advertising revenue (YoY growth):
1) 2017 - $8.2B
2) 2018 - $11.2B (↑ 37%)

3) 2019 - $15.1B (↑ 36%)

4) 2020 - $19.8B (↑ 31%)

5) 2021 - $28.8B (↑ 46%)

6) 2022 - $29.2B (↑ 1%)

Big question #2: Why did advertising revenue growth decelerate?

Quick answer: There should be rapid growth in advertising revenue due to the explosion in streaming TV use.  This has not happened (yet).

Why this matters: A lack of open data/measurement complicates integrating YouTube into a convergent TV media plan.

Bottom line: Linear TV advertising grew faster (↑ 3%) than YouTube (↑ 1%).

Big question #3: What share of total TV time does YouTube account for?

Quick answer: YouTube accounts for 9% of total TV time and 23% of streaming TV time.

3. Embattled Facebook Still Earning Some Likes

Three big questions re: Meta:

1) How much advertising revenue did Meta generate last year?

2) How large is the social video ad market?

3) What share of Meta’s revenue comes from Facebook?

Big question #1: How much advertising revenue did Meta generate last year?

Meta advertising revenue (YoY growth):
1) 2015 - $17.1B
2) 2016 - $26.9B (↑ 57%)
3) 2017 - $39.9B (↑ 49%)
4) 2018 - $55.0B (↑ 38%)
5) 2019 - $69.7B (↑ 27%)
6) 2020 - $84.2B (↑ 21%)

7) 2021 - $114.9B (↑ 37%)

8) 2022 - $113.6B (↓ 1%)

Meta advertising revenue per user in the U.S. and Canada (YoY growth):

1) 2021-Q4 - $60.57

2) 2022-Q4 - $58.77 (↓ 3%)

Meta daily active users in the U.S. & Canada (YoY growth):

1) 2015-Q4 - 169M
2) 2016-Q4 - 180M (↑ 7%)
3) 2017-Q4 - 184M (↑ 2%)
4) 2018-Q4 - 186M (↑ 1%)
5) 2019-Q4 - 190M (↑ 2%)

6) 2020-Q4 - 195M (↑ 3%)

7) 2021-Q4 - 195M (↑ 0%)

8) 2022-Q4 - 199M (↑ 2%)

Big question #2: How large is the social video ad market?

Social video ad spending (YoY growth) according to eMarketer:
1) 2017 - $5.8B
2) 2018 - $8.2B (↑ 46%)
3) 2019 - $11.3B (↑ 37%)
4) 2020 - $15.2B (↑ 35%)
5) 2021 - $24.1B (↑ 58%)
6) 2022P - $29.8B (↑ 24%)
7) 2023P - $36.1B (↑ 21%)
8) 2024P - $42.3B (↑ 17%)

Wow: Video now accounts for 50%+ of all social ads!

Video share of social advertising according to eMarketer:

1) 2019 - 30%

2) 2020 - 33%

3) 2021 - 38%

4) 2022P - 46%

5) 2023P - 51%

6) 2024P - 53%

Big question #3: What share of Meta’s revenue comes from Facebook?

Quick answer: 2/3 of Meta’s revenue comes from the blue app (Facebook).

Daily time spent with Facebook in the United States, according to the Wall Street Journal:

1) 2021 - 219M hours

2) 2022 - 230M hours (↑ 5%)