Digital media ad revenue hits $189 billion, biggest jump in 15 years

As advertising revenue from streaming media (digital video and digital audio) grows, the report warns that “consumer migration to these ad-free, subscription-based experiences threatens revenue from ad-supported streaming services.” In the first half of 2020, Netflix gained 25 million subscribers as consumers who found themselves under stay-at-home orders turned to streaming content for entertainment.

Similarly, last year, Amazon announced that its streaming service had surpassed 200 million members, an increase of 50 million from the previous year. The size of the global video streaming market, which was valued at $38.56 billion in 2018, is expected to reach $149.34 billion by 2026, according to a report by Allied Market Research.

There are also concerns about the effect of privacy regulations on digital revenue streams.

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Apple’s privacy changes in iOS14, which allow consumers to opt out of personalized ads on Facebook and Snapchat apps, slowed ad revenue growth on Meta and Snap.

Concerns over privacy regulations may also have slowed YouTube’s ad revenue growth in the second half of 2021. Google’s parent company Alphabet, which owns YouTube, reported that YouTube’s ad revenue n grew just 25% to $8.6 billion in the quarter ending December, down from the company’s 42% growth in advertising revenue in the third quarter.

Despite the challenges, social media advertising still soared to $57.7 billion, up 39.3% year-on-year, as consumers continue to engage with Snapchat, TikTok platforms , Twitter and Meta.

Search revenue also increased by 32.8%, but saw a slight drop in total revenue share of 0.8 percentage points.

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