Snapchat trails the competition in terms of video audience
The race is tight for digital video advertising dollars in the United States, and Snap (SNAP) is one of the companies vying for this revenue opportunity. According to a report from eMarketer, Snap’s Snapchat trails its major rivals Google (GOOGL), Facebook (FB), and Twitter (TWTR) in terms of video audience.
In the fourth quarter of 2018, 90% of Americans used Google’s YouTube to access digital videos, according to the report, compared to the 18% that used Snapchat to access digital videos. Facebook’s namesake app served 60% of US video viewers, while its Instagram app—which competes directly with Snapchat—served 35% of the country’s digital video viewers in the fourth quarter.
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Twitter, which says that it derives more than half of its advertising revenue from the video format, served 21% of US digital video viewers in the fourth quarter. Amazon’s (AMZN) Twitch platform served 8.0% of digital video viewers in the United States in the quarter.
Snapchat has huge potential in the race for video dollars
Video audience size is a big deal for companies that run ad-supported video services, as marketers like wide exposure. From a glass-half-empty perspective, Snap has a long way to go to catch up with the market leaders in terms of digital video audience size in the United States, and this fact could limit its share of the video advertising market. From a glass-half-full perspective, Snap has more room for growth than its main competitors in the US digital video advertising market.