YouTube beats Netflix to become largest TV streaming platform in US
YouTube continues to maintain a formidable position in the online video advertising market, as confirmed by recent insights from WARC Media Platform. The platform is actively seeking ways to foster deeper connections with viewers, creators, and brands through its multi-format video strategies.
YouTube has surpassed Netflix to become the largest TV streaming platform in the United States. Accounting for 22.9% of over-the-top (OTT) viewing in March 2023, YouTube dominates as the go-to channel for catching up with sports news among US Gen Z viewers. Additionally, YouTube claimed the title of the most popular platform for music and podcast listening in the US last year
Ad investment with YouTube is projected to rise by 4.0% in 2023, reaching a substantial $30.4 billion. This marks a significant turnaround from Q4 2022 when ad revenue experienced an 8.8% decline due to a shift in investment towards retail media and search. Growth is expected to resume in 2023 at more than double the rate recorded in 2022. WARC Media forecasts an accelerated revenue growth of 10.3% for YouTube in 2024, reaching an estimated $33.5 billion by year-end.
With a strong emphasis on Shorts and Connected TV (CTV) engagement, YouTube is spearheading innovations such as unskippable 30-second ads and "pause experiences" on TV, enabling marketers to effectively engage audiences across various screens while achieving their performance and brand-building objectives.
Key Takeaways from WARC Media Platform Insights:
1. Commerce brands are anticipated to spend $4.1 billion on YouTube ads in 2023, representing a 4.6% increase from 2022. While retail remains YouTube's primary category for ad investment, growth from other sectors has proven to be more challenging. However, certain categories are expected to experience double-digit spending increases in 2023, notably technology and electronics (+13.9%) and toiletries and cosmetics (+12.1%), while figures elsewhere show more modest growth.
2. YouTube advertisers have the opportunity to reach approximately half of all internet users worldwide. With over one billion hours of video watched daily on the platform, YouTube maintains its position as the world's most popular online platform. Its adult advertising reach is estimated at an impressive 2.07 billion people, nearly double that of TikTok and Instagram individually. While YouTube Shorts (60 seconds or less) provides marketers with opportunities to engage new audiences, its daily viewer total of 50 billion still trails behind Instagram Reels' 140 billion daily views. Notably, the under-18 demographic spends an average of 60% more time on TikTok than on YouTube content.
According to Kantar research, the Asia-Pacific (APAC) region is a pivotal growth area for YouTube, particularly in domains such as live shopping, Shorts, and gaming. In Latin America, YouTube demonstrates cost-effective brand impact compared to other video platforms.
These remarkable insights demonstrate YouTube's unwavering position as a leading force in the online video advertising market, presenting abundant engagement opportunities for brands, creators, and viewers alike.