YouTube, hit hard by the digital ad market slowdown, remains popular among consumers. It reaches half of all internet users globally (2.07 billion), and commands a strong position in the online video advertising market.
With advertising investment forecast to reach $30.4bn globally, the Alphabet owned video platform is actively looking for ways to forge deeper connections with viewers, creators and brands through multi-format video strategies.
YouTube is prioritising Shorts and Connected TV engagement, and is innovating with unskippable 30s ads and “pause experiences” on TV to help marketers engage audiences across screens and achieve both performance and brand building goals.
WARC Media’s latest Platform Insights report provides an overview of the key datapoints that advertisers need to know about YouTube, spanning investment, consumption and performance insights.
Alex Brownsell, Head of Content, WARC Media, says: “It’s been a tricky 12-month period for YouTube, which is increasingly battling on two fronts, against short-form video platforms like TikTok as well as long-form content streamers in the connected TV space. However, as trading conditions improve in digital advertising, YouTube can expect to see revenue growth improve.
“In this WARC Media’s Platform Insights report, we take a closer look at YouTube to provide marketers with evidence-based insights on the challenges and opportunities the platform offers at a time when ad formats and technologies are fast evolving and understanding audiences is becoming ever more important.”
- Ad investment with YouTube is set to rise 4.0% this year to a total of $30.4bn
The worldwide slowdown in digital ad investment has had an impact across the industry. However, YouTube has been hit harder than most. Q4 2022 ad revenue declined 8.8% year-on-year, as marketers shifted investment to retail media and search and it battled against TikTok, Instagram Reels and Apple’s ATT.
This year, YouTube’s ad revenue is set to rise 4.0% to a total of $30.4bn. This is more than double the rate of growth recorded in 2022, with ad revenues expected to recover in the second half of this year.
As trading conditions become more favourable, WARC Media forecasts YouTube’s revenue growth to accelerate 10.3% in 2024, to reach $33.5bn by the end of the year.
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