Here’s a sentence that probably won’t surprise you: YouTube is a very big deal. It’s a big deal among consumers, and as such, it’s a big deal among advertisers.
Just how big of a deal is YouTube? A survey from eMarketer, released in July 2024, provides some insight. Here’s a high-level overview: YouTube’s ad revenues have increased by 13 percent year-over-year, now close to $9 billion annually. Meanwhile, YouTube viewership continues to surge, especially with connected TV (CTV) viewers. Meanwhile, YouTube Shorts compete directly with similar formats like TikTok and Instagram Reels, which means YouTube is right there at the center of digital advertising.
YouTube has such an expansive reach that it’s worth considering as part of any digital media mix. To illustrate just how far-ranging YouTube really is, we’re going to take a deep dive into some of the specific findings from the eMarketer report.
Five Key Takeaways From the eMarketer Report
1) YouTube ranks among the biggest digital ad platforms in the United States.
First, consider just how lucrative advertising on YouTube can be. The eMarketer report notes that ad revenues in the US alone will surpass $8 billion this year. “That means if YouTube were not owned by parent Alphabet, which also owns Google, it would still rank among the top 10 digital ad platforms in the US by revenue,” the report says. That puts YouTube ahead of Hulu, Apple, and even Wal-Mart.
2) YouTube is a major presence in digital video.
It’s not just about ad dollars. The power of YouTube is also about viewership numbers. According to the eMarketer study, about 241.8 million people will watch YouTube this year, and that’s in the US alone. That accounts for over 90 percent of all digital video views!
“More people will watch YouTube than subscription OTT [over-the-top], ad-supported video on-demand, or free ad-supported streaming TV,” the report suggests. To frame it differently, YouTube is the second biggest video distribution company in terms of overall watch time, surpassed only by Disney.
3) YouTube is huge among mobile users but is also making inroads via CTV.
There are different ways to watch YouTube. For example, YouTube remains especially popular among mobile users. It’s so popular, in fact, that it ranks as the #1 most popular app among smartphone users. YouTube is an even more popular app than Facebook and Instagram.
Yet of all the hours that people spend watching content on YouTube, just over 40 percent occurs via smartphone. What this suggests is that, while many people still like watching YouTube on a small screen, the platform’s growth is largely via CTV.
According to eMarketer, “advertisers should understand that many YouTube viewers are watching the platform the way they watch TVs, and they should borrow strategies from CTV.”
4) YouTube is a potent way to reach Gen Z.
Advertisers must understand how different platforms can help them appeal to different demographics. And when it comes to reaching Gen Z, YouTube is about as effective as it gets.
One of the most surprising eMarketer findings is that roughly nine out of 10 members of Gen Z are on YouTube, which surpasses participation in TikTok, SnapChat, and Instagram. And, surveys have found that Gen Z actually trusts YouTube more than any other social platform.
For brands looking to reach members of this demographic, the implications are here: It’s vital to be active on YouTube, and to understand the kinds of content that are popular there.
5) YouTube is great for targeting.
With any online ad platform, it’s important to understand the array of targeting features available to you. And according to eMarketer, most advertisers agree that YouTube’s targeting features are first-rate.
In fact, with regard to audience targeting features, YouTube outranks all of its competition, including Facebook, Instagram, and TikTok.
More and more brands are investing big bucks to advertise on YouTube, and it only makes sense that they’d prioritize the tools needed to ensure their ads are seen by the right audience.
Making Sense of the Latest YouTube Data
By now most of us realize how powerful and influential YouTube really is. Even so, some of these findings are remarkable. They confirm that YouTube should very much be a part of your media mix, particularly if you're trying to reach younger audiences, if you’re trying to break into the CTV space, or if you’re looking for some cost-effective audience targeting tools.
At enCOMPASS Agency, we’ve advised many of our clients on YouTube advertising. We’d love to talk with you more about whether YouTube is right for you, and to help you determine how to incorporate this platform into your digital strategy. If you’re ready to talk further about YouTube and its role in advertising, feel free to contact the enCOMPASS team at your convenience.
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