The Online Advertising Market is Expected to be Dominated by TikTok

By 2027, online video advertising is expected to generate more than $331 billion in revenue, 37% of which will go to TikTok, according to new research from Omdia.

According to Senior Director Maria Rua Aguete of Omdia's Media and Entertainment training division, advertisers are turning away from META and YouTube in favor of TikTok in order to reach their sizable following.

"TikTok has surpassed other social media sites in popularity among Americans as the best place to watch videos. In 2022, consumers spent more than 30 minutes on TikTok, according to our tracker for social media viewing time.

"Our analysis revealed that TikTok surpassed Netflix last month. became the second-most used app in the US, with YouTube continuing to hold the top spot for users under 35", he added.

TikTok quickly hit rock bottom and gained popularity among young consumers, a market that advertisers actively target. Through channels like traditional linear TV and other social networks, this market has historically been challenging to penetrate.

Omdia research indicates that the industry is on the upswing, with total global media revenue anticipated to surpass one trillion dollars by 2027.

TikTok has been extremely successful in China with e-commerce integration thanks to demands from all over the world. This activity is anticipated to continue as the platform seeks to partner with regional e-commerce players to reinvent itself in other parts of the Asia-Pacific.

A closer look reveals that Netflix will earn $7.4 billion by 2027, or 2% of the market for online video advertising.

Contrarily, Meta struggles to adapt to Apple's privacy restrictions that were put in place last year. Many businesses move their advertising budgets away from Meta because the ads there are no longer effective.

"The journey of TikTok has been so fascinating, and it is obvious that their business model is effective. It's a platform with enormous potential for advertisers and reach that can't be disregarded "Finally, he said.