Retail Brands Continue to Advertise Heavily on YouTube - eMarketer

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Retail Brands Continue to Advertise Heavily on YouTube

Wal-Mart leads the pack

January 20, 2016

Companies like Wal-Mart, Target and Amazon have been flocking to YouTube to run branded content and advertising campaigns. Digital video ad spending on the Google-owned platform continues to grow, and is expected to maintain the biggest share of US video ad revenues through 2017.

Pixability, a YouTube ad buying and video marketing platform, examined how much the National Retail Federation’s top 10 US brands spent on YouTube from Q1 2015 to Q4 2015. Wal-Mart and Target were the two retailers that spent the most. Wal-Mart spent nearly $600,000 in Q1 2015 and by Q4 2015, its digital video ad spending increased to $2,579,000. Target spent about $57,000 in Q1 2015 and by Q4 2015 ad spending rose to $1,889,000.

Walgreens was another company that increased its digital video ad spending on YouTube over the course of the year, from $12,000 in Q1 2015 to $88,000 in Q4 2015.

Retailers are likely increasing their digital video ad spending because of YouTube’s newer shoppable ad models. In fact, Digiday reported that YouTube be is pushing retailers toward this new format, which was launched in 2015.

But not every brand is increasing its digital video ad spending. Lowe’s, The Home Depot, CVS and Amazon were among those that have decreased their spending. In fact, in Q1 2015, Amazon spent about $1,741,000 on digital video advertising on YouTube. In Q4 2015, the company spent $162,000.

Growth in YouTube’s net US video ad revenues will drop to 6.2% in 2017, eMarketer estimates. During this time, YouTube’s share of the video ad market will also recede. These decreases reflect growing competition in the space as Facebook, Twitter, Yahoo, Vimeo and others push further into ad-supported video. However, even at a 17.7% share of total video ad revenues in 2017, YouTube will remain the biggest player in this area.

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