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Facebook looks to grab a bigger slice of the TV advertising market
5 de noviembre de 2015
It’s not just Netflix and Hulu that Time Warner has to worry about, because along with Facebook’s strong financial third quarter results released last Wednesday, was a number that should send a chill through the cable and broadcasting industry. The social network – whose shares rose 5% to hit a record high of US$109.44 – said its video views swelled to 8 billion per day in the third quarter, from just 1 billion a year earlier. The growth in video views presents the most significant near-term opportunity for Facebook which looks to grab a bigger share of the TV advertising market, according to analysts. “We think Facebook looks well positioned to capture an increasing portion of TV ad budgets as markets migrate toward highly targeted online video ad campaigns” Jefferies analyst Brian Pitz wrote in a client note. Pitz said that the online video ad market is likely to be worth about US$17 billion a year by 2017 in the U.S. alone. Time Warner Inc, provider of cable channels TNT, TBS Cartoon Network, said on Wednesday that ratings for its key U.S. entertainment networks had dropped more than expected, which will result in a fall in ad revenue next year.
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