With growing traction for online Video, everybody is bullish on FaceBook's video plans, there is also a significant growth opportunity for YouTube.
FB Video will likely impact growth (particularly if FB launches a stand-alone app, as we expect), but there are enough eyeballs & ad dollars for both to grow ahead of the market, given continued mis-execution by potential competitors (YHOO, AOL, video networks, etc...). We believe GOOG, FB, and others will continue to aggressively target TV ad budgets for large-scale brand-based advertising campaigns. This bucket of ad dollars represents the single-largest untapped opportunity for online ad platforms, and successfully targeting these budgets could result in upside to consensus estimates over time. The video opportunity is GOOG?s biggest near-term driver of revenue growth.
