YouTube’s ad revenues showed a decline more than the expectations in the fourth quarter. It showed an 8% decrease year over year. In early February, the CEO, Susan Wojcicki, decided to resign after performing his job for 9 years. Now, at 3 months into 2023, YouTube’s problems don’t seem to have disappeared entirely. However, it still isn’t a good time for Google and YouTube to part ways. The analyst of Insider Intelligence, Evelyn Mitchell, recently discussed it in the podcast “Behind the Numbers: The Daily.”
According to Mitchell, both Google and YouTube will face challenges in the coming days. However, they are better together to overcome any critical situation, and this is how they can make a fresh start for the predicted future.
According to the Economist, a sidequel (Side + Sequel) could help lessen leadership doubts on Google CEO Sundar Pichai. At the same time, it will allow Alphabet to proceed further to lead the US Department of Justice (DOJ). It caused prosecution for its so-called monopoly in digital advertising in January.
YouTube would have the privilege to assess additional subscription revenues because of diversifying on its own and separating itself from the authoritative despair of Google.
Mitchell says the possibility of parting ways is quite interesting, but it is not a wise move for either of them. You can easily draw parallels between Google and YouTube to see how things are for them. ChatGPT will take over all search engines, including Google. It will change the intersection of consumers with the Internet. And for YouTube, the users are now switched to watching short videos. However, it’s not something new as we have seen how things turn out differently afterwards. So, it’s about time that YouTube proceeds in a way that helps it rise on its feet in the growing competition of digital ads because of the emerging streaming platforms.
The second parallel between Google and YouTube is that both face threats to their position in the market. However, the number of users on both platforms is constantly increasing. Google’s biggest competition is from New Bing, Microsoft, TikTok, and Amazon. However, Google is the most popular and default search engine on Chrome and Safari, so it has a competitive edge over the others. On the other hand, YouTube is defending itself against the competition from Disney Plus and Netflix. At the same time, it’s also facing the challenge of competing with short video platforms like Instagram and TikTok. However, when it comes to the number of viewers or users, according to the forecast, YouTube will have 236.1 million monthly viewers this year.
Netflix will only achieve 70% of this number of users, while TikTok will have around 40%. The time users spend on a platform is another critical factor that affects its success. But YouTube has maintained a strong position in the market because of being one of the most common platforms. The fact that the majority of people around the globe know about it makes it a powerful platform.
It’s improbable that it would lead to reconciling the authoritative inspection from the DOJ or the Supreme Court. However, it would require YouTube to handle a challenging period without Google’s resources on which the video platform is dependent. So, according to the forecast, Google will miss out on it as YouTube tends to conciliate up to 15.7% of Google’s returns.
Here are three threats to the success of YouTube:
- The US Supreme Court held YouTube accountable for a woman’s death in 2015 due to a tourist attack.
- Setting up changes in privacy and acts is making YouTube rebuild its targeting and measurement framework.
- YouTube faces the challenge because of the increasing competition for ad dollars from social media and streaming.