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Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

Even Facebook recently announced creators as one of its four areas of focus for 2023, along with AI, messaging, and monetization. Creators are deeply rooted in many aspects of business and society. Some, like the D鈥橝melio family, have become startup investors themselves. In 2023, we expect more creators to launch their own brands and monetize outside of the bounds of social media.

The post-ATT transition has been expensive and requires a full-scale reimagining of game monetization. Large platforms, such as Roblox or Ubisoft, have moved most quickly, but they鈥檒l eventually be joined by smaller ones as the prospect of brand dollars grows. It鈥檚 a virtuous cycle for brand advertisers. Explore AI鈥檚 impact on the burgeoning video ad space.

Meta鈥檚 powerhouse ad platform also gives it a leg up in monetization as genAI search advertising gains steam. Meta is a staple in most marketers鈥� ad strategies and will account for 22.8% of worldwide digital ad spending in 2024, per our forecast. Both Facebook and Instagram already offer some search ad placements, while WhatsApp monetizes via business messaging tools.

While Musk has said he plans to improve creator monetization on the platform to attract creators, Twitter鈥檚 new ad revenue-sharing program for reply tweets won鈥檛 been enough to move the needle for most, and creators must sign up for Twitter Blue to be eligible. Twitter lags in social video. The single biggest driver of time spent on social media is video.

鈥淩egardless of each company鈥檚 motivation, the convergence of SVOD CPMs around a down-to-earth mean should spur growth in ad 尘辞苍别迟颈锄补迟颈辞苍,鈥� according to Verna. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Instagram is poised to sustain its lead with the help of the potential for high-paying partnerships and its more recent performance-based monetization program. That said, TikTok is not far behind Instagram, as 89.6% of US creators will share sponsored video content on the platform this year.

Even TikTok, which is growing its user base, ad monetization, and role in the cultural zeitgeist, reduced its 2022 ad revenue guidance. It should be noted that although we also curtailed our digital advertising estimates in our latest forecast update, the reduction in social was especially pronounced. As a bright spot, video will account for a growing share of social network ad spending. 

But the technology鈥檚 limitations, which include a lack of explainability, high compute costs, and monetization challenges, won鈥檛 be worked out within a matter of months. Going forward, tech companies may want to more carefully consider whether the publicity benefits of releasing half-baked AI systems for public testing is worth the risk鈥攁nd expense.

This is the latest installment in an ongoing series of quarterly video overviews focusing on monetization, audience, and content. Here鈥檚 a look at what鈥檚 on the radar for Q4. 3 KEY QUESTIONS THIS REPORT WILL ANSWER. How much money will advertisers spend on subscription streaming video services? What should advertisers expect from Netflix鈥檚 advertising offering?

Diversification is top-of-mind: Meta tread carefully around the question of competitors and Threads monetization, while Pinterest and Snap noted a need to move from the consideration set to a must-buy for advertisers. 鈥淚 don鈥檛 think there鈥檚 a single CMO or head of agency saying that they want to consolidate more spending with just two or three players in the industry,鈥� said Snap鈥檚 Harris.

Despite AI鈥檚 buzz, that鈥檚 a challenging prospect: Monetization has lagged behind AI development, and Meta has already run into notable content moderation issues involving the tech.

In the wake of ATT, app developers are merging with app monetization platforms and clustering apps into ad networks, effectively pooling first-party data for targeting and measurement. The open exchange is losing share across all devices.

Retail media clearly has a longer runway on ad monetization. Retail media is better positioned to increase ad loads than search and social because many RMNs are still maturing and enabling more inventory. Walmart鈥攖he No. 2 to Amazon among RMNs鈥攊mplemented a second-price auction and search algorithm changes in early June 2022 that drove down CPCs, according to Skai.

A thriving community is what makes monetization work, not the other way around. This article originally appeared in Insider Intelligence'sConnectivity & Tech Briefing鈥攁 daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

鈥淵es, they have a higher level of complexity because they must balance the customer experience with monetization, but they鈥檙e really excited about the opportunity because the revenue potential is obvious.鈥�. Brands, however, are a little harder to convince, said Nickell. Most of the momentum from brands exploring in-store retail media has come from brands outside of the CPG category.

Only Meta seems to have figured out how to transmute user engagement into outsize monetization. TikTok is heading in the right direction but has a long way to go. TikTok鈥檚 ad revenue growth will greatly exceed its time spent growth this year and for the next several years, so its ratio in the chart above is set to improve.

Unlike Twitter, Meta isn鈥檛 trying to overhaul its monetization model, and any revenues it generates from Meta Verified would just be nice padding on its ad business. Meta Verified is also closer to providing real value for subscribers than Twitter Blue鈥� with less controversy鈥攁nd at under $150 per year, it may be worth it for creators looking to build their brands and audiences on Instagram.

鈥淲e wanted to understand what makes us differentiated,鈥� said Melanie Babcock, vice president of Orange Apron Media and monetization, of the rebrand. 鈥淎nd it鈥檚 really about our service model and how we use service as a lens to view our products and experiences.鈥�.

Our Take: While Meta, TikTok, and Snap battle for preeminence in consumer-facing social media, and while the Twitter sideshow continues to take up most of the oxygen in the room, LinkedIn is quietly building its leadership as a business-focused service with a solid monetization record. TikTok. TikTok is by far the fastest-growing social network when it comes to ad monetization.

鈥淢ost retail media [networks] are focused on performance marketing on their first-party websites,鈥� Mario Mijares, vice president of insights, loyalty, marketing, and monetization platforms at 7-Eleven, said at Advertising Week New York 2023. 鈥淲e鈥檙e not doing that. Our focus is connecting our database to third-party platforms and in-store for top-of-funnel and mid-funnel marketing.鈥�.

But Mitchell-Wolf said advertisers lacked visibility into its monetization. 鈥淭he 2 billion figure鈥攜es, it鈥檚 a milestone, but it鈥檚 also Google choosing to focus on this stat, and it鈥檚 crafting a narrative over the long term, choosing to deploy certain numbers at certain times to placate investors.鈥�. Analyst insight: Mitchell-Wolf said YouTube鈥檚 growth was 鈥渉eartening.鈥�

The big red flag for future monetization growth is that Meta continues to expect time on Reels to monetize at a lower rate than its Stories and Feed, since people tend to scroll more slowly through video content. Time spent is another factor: US adult Instagram users will spend 33.1 minutes per day on the app this year, well below the 53.8 minutes TikTok users spend, according to our forecast. 2.

First, YouTube is pushing its video Shorts format, which is still early in its monetization journey. Second, though Google鈥檚 core search business is relatively immune to Apple鈥檚 AppTrackingTransparency changes, YouTube is not, which could be biting into its revenues. Third, it all goes back to comps, said Willens: 鈥淵ouTube had a monster 2021, so it鈥檚 harder to stack up against that.鈥�.

The ByteDance-owned app鈥檚 commerce monetization is different at its core, following sister-app Douyin鈥檚 road map in China. Douyin already runs ecommerce fulfillment centers in China, operating like a retail company. Its rumored fulfillment centers in the US will help Chinese sellers get low-cost products to its young US consumer base faster.