Social video ads have been heavily advocated and vouched for by giant internet firms like Facebook, Twitter, Snapchat and YouTube. This has

resulted in a surge in social video ad spend across the globe. However a new forecast reveals that investments in this popular ad format have entered into a temporary plateau phase in its continuous growth cycle.


According to a forecast examining social video’s share of ad spending among advertisers worldwide between Q1 2016 and Q1 2017 by online advertising firm Kenshoo, investment in the social video ad format appears to have hit a roadblock. While social video ad spending share saw continuous increases between Q1 and Q4 of 2016, Kenshoo noted there was a slight decline during the first quarter of this year on its platform. However, there has been an ongoing effort to push for more investment in social video ads so this decline is of little concern to many brands and only seems to be a temporary roadblock that should resolve soon.

Among some of the factors that Kenshoo believes have resulted in this decline include the 2016 US presidential campaign, which saw a significant increase in social ad videos in Q4 of last year. Also more recently there is the massive YouTube boycott over placement of ads alongside inappropriate content that saw many top companies pulling their ads from the video sharing platform. However, even this is thought to have little impact on social video ad spend and only seems to be temporary.

On the plus side more consumers are registering higher engagement with video ads put on social platforms. As noted in an October 2016 polling conducted by Vanson Bourne for Brightcove, 40% or more of internet users in the US, Australia, the UK and France watched a branded video on social media during the time period studied. Even more promising was that a significant portion of respondents made a purchase after watching. This was highest in the US (53%) and Australia (48%).

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