While some of Facebook’s young audience is tiring of advertising on the platform, Snapchat users seem to have a higher tolerance. More than a quarter (26 percent) of US Facebook users aged 12 to 17 think it has too many ads, versus 11 percent for Snapchat, according to Forrester’s online research with more than 3,000 young consumers in the U.S.
Still, Facebook grew the most of all the social platforms in 2016, with 75 percent of global social ad dollars spent on it, and it is likely to start making serious money from video advertising. “While Facebook video runs the gamut from user-generated animated GIFs to slickly-produced news videos from CNN, we expect that ad spending will be skewed toward the latter TV-style videos,” Verblow states. Forrester expects that commercials within TV networks’ content will provide most of the video ad growth.
Earlier this month, Facebook launched Watch, to help users discover videos outside their news feed more easily, and in July announced higher than expected Q2 earnings driven by sales of mobile video ads. Its revenue for the quarter was $9.32 billion, versus an expected $9.2 billion.
Snapchat meanwhile launched daily news service “Stay Tuned” with NBC in July, with revenue split between the two.
Disclosure: CNBC parent NBCUniversal is an investor in Snap.