Video ad spending skews less native because in-stream video ads are hugely popular with advertisers. These video ads are found on ad-supported over-the-top (OTT) services like Hulu and Roku and are even more prominent on YouTube, which alone will account for 11.5% of US digital video ad spending this year.
Social networking sites like Facebook, by contrast, still make most of their video ad revenues on native outstream formats like in-feed ads. But this could change in the future. Almost all social video ad spending went to native formats in 2017 (99.5%), but that number is expected to fall to 96.2% by 2020.
Facebook, the second-largest digital ad seller in the country, expanded its in-stream offerings last year, hoping to entice marketers with what it says are high completion rates and sound-on viewing. Twitter also has made in-stream video more dynamic. Late last year, the company made it possible for publishers to monetize their organic videos worldwide. Now, US publishers can host—and profit from—in-stream video ads outside their local markets.
These investments shouldn’t put a substantial dent in native video’s majority on social networks, but if Facebook Watch or other long-form video components become successful on social, there could be much more money being spent on in-stream video in the future.
Also published on Medium.