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State of the Screens

Can YouTube Win Bigger With Traditional TV Advertisers?

By August 10, 2021November 15th, 2021No Comments

YouTube advertising revenue (YoY growth):
1) 2019-Q2 – $3.6B
2) 2020-Q2 – $3.8B (↑ 6%)
3) 2021-Q2 – $7.0B (↑ 84%)

Big question #1: What drove YoY growth in revenue for YouTube?

Quick answer: A rapidly increasing CTV user base and higher CPMs (↑ 108% YoY).

 

YouTube users in the U.S. on CTV (% change):

1) Mar-20 – 100M

2) Dec-20 – 120M (↑ 20%)

 

Share of YouTube ads on CTV according to The Information:

1) 2019 – 12%

2) 2020 – 40%

 

Share of U.S. adults who use YouTube according to Pew:

1) 2018 – 73%

2) 2021 – 81%

2021-08-04_18-33-42

Big question #2: What items limit YouTube’s ability to cut into the $70B TV ad market?

Missing items from YouTube ad offering according to AdAge:

1) Measurement (beyond YouTube)

2) Frequency management (beyond YouTube)

3) Targeting (beyond YouTube data)

Quote from anonymous media buying executive:

“We know that the marketplace for TV is challenging, at best.  And in order to really transfer dollars over from linear cable to something like YouTube, you need to understand, ‘Am I getting the same efficiency? Am I getting the same value? Am I getting the same audience?’”

YouTube’s share of U.S. video ad market according to eMarketer / Cross Screen Media:

1) 2019 – 4%

2) 2020 – 4%

3) 2021P – 5%

4) 2022P – 6%

5) 2023P – 6%

 

More: Deeper Dive — Why YouTube should launch a FAST

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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