Seeking Alpha

Evercore boosts PTs, citing online video ad possibilities

  • "We expect U.S. online video advertising will increase to $8.1 billion by 2016, a 37% compound annual growth rate," says analyst Ken Sena, noting his team's estimates are well above those of Magna Global, which sees $6.1B, or a 24% CAGR. "Video content is becoming more about immediacy and on-demand, the seconds-long clip formats of Vine and Instagram have unleashed a new wave of UGC, and YouTube steamrolls on for most everything video."
  • Looking at Twitter (TWTR) and assuming it can garner 5% of this action, Sena says 17% of his team's 2016 $6B revenue estimate would consist of video.
  • "Moreover, by examining other online video providers too through the framework of 1) control of the feed, 2) programmatic ad delivery across multiple devices, and 3) access to premium content, we see Google (GOOG), Twitter and Facebook (FB) as best positioned," he says. "What places Twitter in such strong company is the combination of its immediacy and the support that it is receiving from the traditional TV industry."
  • PTs: Twitter to $70 from $52, Yahoo (YHOO) to $40 from $33, AOL to $44 from $40, Google to $1,290 from $1,250, Amazon (AMZN) to $480 from $450.
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Comments (4)
  • teksavvy
    , contributor
    Comments (46) | Send Message
     
    No FB price target hike?
    2 Jan 2014, 07:40 AM Reply Like
  • toosmarttofail
    , contributor
    Comments (610) | Send Message
     
    Video ads can be run FREE on places like YouTube, through a company's own channel.

     

    The whole concept of internet advertising is fragile at best. Google does it best for now, but even that has problems if Google's search engine comes under legal attack.

     

    How many readers here really click o ads?
    2 Jan 2014, 08:58 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4742) | Send Message
     
    I have, but only accidentally, due to those annoying page flickers that seemingly every site has built in.
    2 Jan 2014, 09:21 AM Reply Like
  • Williamcliang
    , contributor
    Comment (1) | Send Message
     
    Twitter is way over valued and will have a horrific crash. The ads on these social media sites are annoyances and very few people really click on them. How can Mr. Sena justify an increase from 52 to 70 (an increase of 10 billion in market cap) based on the potential for increased revenue from video advertising...the projected increase in the entire video ad space over the next couple of years is not even close to the 10 billion. Mr. Sena seems to be chasing the recent stock price with his new estimate. Twitter does have a very high growth rate in revenue, but it is the direct result of a small base and as they grow, the growth rate will dramatically decrease. Twitter brings back memories of the dot.com bubble days!
    2 Jan 2014, 10:47 PM Reply Like
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