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TikTok to command 37% of online video advertising revenues by 2027, according to Omdia

At the Media and Entertainment Leaders Summit earlier this month, Maria Rua Aguete, Senior Director at Omdia, revealed that TikTok will command 37% of online video advertising revenues by 2027. This market share would represent more than both Meta and YouTube combined. The research company forecasts online video advertising revenues will reach $331B by 2027. Aguete also said Netflix will generate $7.4B in ad revenues in 2027, equating to 2% in the online video advertising market.

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“Online video is still exploding and advertising is going to be a large part of it. A small Chinese vertical video company will be the king of this castle – guess who?” asked Maria Rua Aguete, Senior Director at Omdia, at the Media & Entertainment Leaders Summit in London last week.

She revealed that, according to Omdia forecasts, TikTok will command 37% of online video advertising revenues by 2027. This market share would represent more than both Meta and YouTube combined. Aguete said: “TikTok’s journey has been very interesting and it’s clear that their model works. This is a platform which offers huge audience reach and potential to advertisers which cannot be ignored.” She also remarked that advertisers are beginning to move away from Meta and YouTube and towards the platform.

The research company also forecasts online video advertising revenues will reach $331B by 2027, an astonishing 61% of which will be commanded by only three companies: Meta, Google (YouTube) and TikTok.

Omdia expects total global media revenues to surpass a trillion dollars by 2027, and that 42% of that will come from online video (including subscription revenues for SVODs and online video advertising revenues.)

According to Omdia, in the U.S., TikTok has already overtaken other social media platforms to become the most popular place to watch videos. Research from the company shows that consumers’ average daily viewing time on TikTok surpassed half an hour in 2022. The company said: “Last month, our research showed TikTok leapfrogged Netflix to become the second most popular app in the U.S., with only YouTube retaining the crown for under-35s viewing.”

Aguete also said Netflix will generate $7.4B in ad revenues in 2027, equating to 2% of the online video advertising market.

She remarked that connected TV is bringing traditional viewing back “by stealth” in the form of FAST channels. She predicted: “In five years-time, I believe we’ll all be watching streaming services but always with adverts – always.”

 


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