TikTok ad revenues will exceed Meta and YouTube’s by 2027

(Image source: Omdia)

According to new Omdia research, online video advertising will generate over $331 billion in 2027, with TikTok accounting for 37% of that total.

“Advertisers are beginning to move away from META and YouTube and towards TikTok to reach their vast follower base,” said Maria Rua Aguete Senior Director in Omdia’s Media and Entertainment practice group.

“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.”

TikTok reached a critical mass very quickly and has become popular with the young consumer market, a sought-after demographic by advertisers. This market has been traditionally hard to reach via channels such as traditional linear TV and other social networks.

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

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