Evolution of Video Content on YouTube Increases their Revenue by 49%

As new digital consumption behaviors emerge among social media users, new habits also become embedded, and as a result traditional advertising approaches are also being completely changed, and in many cases, turned on their head. The latest trend in emerging is YouTube’s slow-moving revenue from TV commercials, as it becomes the most widely used video content platform among a wider group of consumers.

It was last week when YouTube’s parent company Alphabet announced their Q1 2021 results, that showed YouTube had a windfall of a fresh $6 billion in ad revenue for the period, that is almost 49% up on year-on-year basis. That’s a huge profit, which now puts YouTube all set to beat their nearest digital video rival Netflix in the annual earnings.

The figures are quite imposing, and reflect YouTube’s growing presence in the video landscape, which is now reaching new digital heights, as people increasingly watch YouTube content on their TV sets within safe confines of their homes.

It was only last month, when YouTube’s chief product officer Neal gave some new insights about the latest shift in the viewing trend mentioning that it’s still mobiles that decide how majority of content is consumed on the digital platform. However, if we may talk of YouTube’s most popular viewing experience, it is now on the TV screen itself. In fact as recent as in the December 2020, more than 120 million people in the U.S. either live streamed YouTube or watched it right on their TV screens. This was definitely a revelation as a brand new viewing behavior was finally emerging on the strength of a new generation of viewers who now opted to watch YouTube primarily on their TV screen instead of mobiles or other devices. It was truly unprecedented to imagine that just in the month of December 2020, over a quarter of users logged-in at YouTube CTV viewers in the U.S. itself and watched content almost exclusively on their TV screens.

Talking of YouTube TV viewing, the younger audiences have now particularly become more accustomed to the connected TV viewing, and YouTube after taking cue is slowly but surely eclipsing traditional TV channels, which points to fresh opportunities for advertisers to reach these important audiences through more economical, better targeted, and with more impactful promotional campaigns. Undoubtedly, it’s welcome news for brands and marketers, and also for new exciting social channels such as connected app but according to CNBC notes, it’s not great news for TV channels. It doesn’t matter who ends up ahead in the race between YouTube and Netflix, since both are hogging limelight’s and are busy piling on dollars from traditional linear TV.

However, the shift is the new reality reflective of the evolving consumer landscape, and the way in which people are now choosing to engage with video content. The new video shift is made readily available aligned with the need of young consumers, and as the next generation emerges on the scene, it’s also more aligned with shorter episodes and clips. And that significantly alters the landscape.

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