Omdia Research Reveals TikTok Advertising Revenues Will Exceed Meta and Youtube’s Combined Video Ad Revenues by 2027

New research from Omdia shows online video advertising will generate over $331bn in 2027 and 37% of those revenues will belong to just one company, TikTok.

“Advertisers are beginning to move away from META and YouTube and towards TikTok to reach their vast follower base,”

“In the USA, TikTok has overtaken other social media platforms to become the most popular place to watch videos. Our trackers for social media viewing time show that consumers spent more than half an hour on TikTok in 2022. Last month, our research showed TikTok leapfrogged Netflix to become the second most popular app in the US, with only YouTube retaining the crown for under 35s viewing.”

Maria Rua Aguete Senior Director in Omdia’s Media and Entertainment practice group.

TikTok gained huge numbers very quickly and became popular with the young consumer market, which is sought after by advertisers. This market was previously difficult to reach through channels such as traditional linear TV and other social networks.

According to research by Omdia, the sector is heading on a positive trajectory with total global media revenue expected to surpass $1 trillion by 2027.

After following suit around the world, TikTok has achieved great success in China with its e-commerce integration. This activity is expected to continue with the platform looking to replicate in other APAC regions by partnering with regional e-commerce players. A closer look at the research shows that Netflix will generate $7.4 billion in revenue by 2027, equivalent to 2% of the online video ad market.

On the other hand, Meta did not comply well with Apple’s privacy restrictions implemented last year. Meta advertising has lost its effectiveness, causing many brands to shift their advertising budget elsewhere.

“TikTok’s journey has been very interesting and it’s clear that their model works. This is a platform which offers a huge audience reach and potential to advertisers which cannot be ignored.”

Maria Rua Aguete Senior Director in Omdia’s Media and Entertainment practice group.