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State of the Screens

Facebook closes the gap on TV advertising

By April 6, 2018No Comments

Facebook has grown revenue per user by 500% since 2012. Television (advertising only) has grown 4%.

A single digital network now generates 40% of the revenue/user that the entire television industry does from advertising. This is why some people think that Facebook could eventually be worth $1t.

Why is this important? Networks like Facebook and Google are growing both their user base and revenue/user which should lead to a further explosion of total revenue. The user base for traditional media has matured which leaves revenue/user as the primary path for growing total revenue. Think higher advertising CPM $ and higher prices for cable tv.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.