YouTube Reports 49% Jump in Ad Revenue
With the consumption of new digital behaviors, traditional method of approaching advertisements has transformed and has given rise in revenues of various tech companies.
YouTube has become the preferred consumption surface for video content in a broader group of consumers.
YouTube's parent company Alphabet reported its Q1 2021 results, which showed that YouTube brought in $6 billion in ad revenue for the period, up 49% year-on-year. This results has put YouTube on pace to beat digital video rival Netflix in annual earnings.
The increased in number has reflected YouTube growing in pace of video landscape, as people are watching YouTube not only on their mobile phones but on their home TV Sets.
Last month, YouTube's chief product officer Neal Mohan had provided some new insight on this shift in their YouTube blog post noting that:
"Though mobile still makes up the largest percentage of how content is consumed on the platform, our fastest growing viewing experience is on the TV screen. Last December, over 120 million people in the U.S. streamed YouTube or YouTube TV on their TV screens. And there’s another interesting viewing behavior emerging. A new generation of viewers chooses to watch YouTube primarily on the TV screen: Also in December, over a quarter of logged-in YouTube CTV viewers in the U.S. watched content almost exclusively on the TV screen."
With a high demand of YouTube in youngsters, they prefer watching video content on their TV Sets and this has resulted in slowly eclipsing traditional TV channels, which points to new opportunities for advertisers to reach these increasingly important audiences through more affordable, more targeted, and more effective promotional campaigns.
This has created an opportunity for new brands and marketers but is not so great for TV Channels.
The new shift in YouTube has emerged in engaging with new generation consumers in a better way by keeping their demand of short video content & clips in mind by making the content always available on the app.