๐—ฌ๐—ผ๐˜‚๐—ง๐˜‚๐—ฏ๐—ฒ ๐—ฉ๐—ฆ ๐—ง๐—ถ๐—ธ๐—ง๐—ผ๐—ธ: ๐—ง๐—ต๐—ฒ ๐—ณ๐—ถ๐—ด๐—ต๐˜ ๐—ณ๐—ผ๐—ฟ ๐—บ๐—ฒ๐—ฑ๐—ถ๐—ฎ ๐˜€๐˜‚๐—ฝ๐—ฟ๐—ฒ๐—บ๐—ฎ๐—ฐ๐˜†

Alejandro Cuauhtemoc
3 min readAug 11, 2022

--

YouTube is a pillar of Googleโ€™s business, generating more than $28 billion in advertising revenue last year. ๐˜›๐˜ช๐˜ฌ๐˜›๐˜ฐ๐˜ฌ ๐ŸฅŠ ๐˜ฉ๐˜ข๐˜ด ๐˜ต๐˜ฉ๐˜ณ๐˜ฆ๐˜ข๐˜ต๐˜ฆ๐˜ฏ๐˜ฆ๐˜ฅ ๐˜ ๐˜ฐ๐˜ถ๐˜›๐˜ถ๐˜ฃ๐˜ฆ ๐˜ฅ๐˜ถ๐˜ณ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฑ๐˜ข๐˜ด๐˜ต ๐˜ง๐˜ฆ๐˜ธ ๐˜บ๐˜ฆ๐˜ข๐˜ณ๐˜ด ๐Ÿฅบ , causing the highest quarterly download for any app ever. Hereโ€™s how both companies are trying to reach media supremacy! ๐Ÿ“บ

๐—ง๐—ถ๐—ธ๐—ง๐—ผ๐—ธโ€™๐˜€ ๐—ฎ๐—ฟ๐˜€๐—ฒ๐—ป๐—ฎ๐—น:

๐Ÿคœ ๐—ฆ๐—ถ๐—บ๐—ฝ๐—น๐—ถ๐—ฐ๐—ถ๐˜๐˜†: Short vertical videos are catching the attention and generating high demand that has creators scrambling to build nice and easy-to-produce content, causing a strong network effect.

๐Ÿคœ๐—ง๐—ฟ๐—ฒ๐—ป๐—ฑ๐˜€: Trending topics have captured younger generations through the โ€œfor youโ€ and โ€œsuggested researchโ€ feeds. The users can also follow songs and sounds in TikTok. The combination of dancing, music and popular topics is a burst of dopamine. The music industry has even allied with the platform by incorporating new song bits to trends, generating massive consumption. Meanwhile: YouTube also has a trend section, but the UX falls short.

๐Ÿคœ๐—œ๐—ป๐˜๐—ฒ๐—ฟ๐—ฎ๐—ฐ๐˜๐—ถ๐—ผ๐—ป: People interact more with TikTok videos because they last less than a minute. The recommendation algorithm considers watched time, clicks, comments, tags, and other interactions to give you a relevant feed, making it addictive. โ€” Meanwhile: YouTube has long videos, between 5 minutes to hours, limiting interaction.

๐Ÿคœ๐—ฆ๐—ผ๐—ณ๐˜ ๐—”๐—ฑ๐˜ƒ๐—ฒ๐—ฟ๐˜๐—ถ๐˜€๐—ถ๐—ป๐—ด: Ads seem like just another video. They blend with the rest of the content until they are indistinguishable. โ€” Meanwhile: YouTube ads could interrupt your video many times.

๐Ÿคœ๐—ฌ๐—ผ๐˜‚๐—ง๐˜‚๐—ฏ๐—ฒ ๐˜€๐˜๐—ฟ๐—ถ๐—ธ๐—ฒ๐˜€ ๐—ฏ๐—ฎ๐—ฐ๐—ธ ๐˜„๐—ถ๐˜๐—ต ๐—ฆ๐—ต๐—ผ๐—ฟ๐˜๐˜€: Since YouTube launched Shorts, its short-video service, about two years ago, 1.5 billion people have tuned in monthly. โ€” Meanwhile: The young TikTok has over 1.6 billion monthly active users.

๐Ÿคœ๐—ฃ๐—ฟ๐—ถ๐˜‡๐—ฒ ๐—ฝ๐—ฒ๐—ฟ ๐˜ƒ๐—ถ๐—ฒ๐˜„: YouTube pays more money per view than TikTok. A video with 100,000 views could earn between $100 and $2,500. Actually, we can see YouTubeโ€™s generosity in other figures: 50% of its revenue in the last 10 years has gone to creators. โ€” Meanwhile: TikTok pays less than one-tenth for the same number of views.

๐—Ÿ๐—ผ๐—ผ๐—ธ๐—ถ๐—ป๐—ด ๐—ณ๐—ผ๐—ฟ๐˜„๐—ฎ๐—ฟ๐—ฑ

Finally, letโ€™s mention the new short-video competitor: Instagram Reels, which has gained 20% of the user share of time, leveraging two billion active Instagram users.

After years with the same product, YouTube now faces a competitor over user and creator share of time. In the near future, it looks like video platforms will offer similar products till a new disruptor arrives, like in the ๐—›๐—ผ๐˜๐˜๐—ฒ๐—น๐—ถ๐—ป๐—ด ๐—น๐—ถ๐—ป๐—ฒ๐—ฎ๐—ฟ-๐—ฐ๐—ถ๐˜๐˜† ๐—ฒ๐—ฐ๐—ผ๐—ป๐—ผ๐—บ๐—ถ๐—ฐ ๐—บ๐—ผ๐—ฑ๐—ฒ๐—น.๐Ÿค“

โ€œOur creators want fame or fortune or creative expression, ideally all three,โ€ said Tara Walpert Levy, vice president of Americas at YouTube.

--

--

Alejandro Cuauhtemoc

Letโ€™s talk about gossip in the business strategy & technology worlds. I am Strategy Lead at DiDi in the Bay Area xoxo