YouTube advertising revenue (YoY growth): |
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% |
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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%
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