Alphabet, the parent company of YouTube, announced its first-quarter earnings this evening. This will have a big effect on the online video industry, with updates about YouTube.
YouTube creators make 55% of ad revenue, while TikTok content creators earn meager payouts from YouTube’s creator fund. It was reported that 40% more YouTube channels earned at least $10,000 in revenue last year.
Even though YouTube missed its quarterly projections for revenue, the platform made $6.87 billion—still higher than last year’s Q1 when YouTube earned $6 billion in ad revenue. Wall Street folks don’t love a miss, but it’s still better than last year.
Porat said that this growth rate is a result of last year’s rise in revenue, likely due to YouTube’s involvement with the pandemic. YouTube noted that the loss in potential ad revenue comes from slow spending by European advertisers, who are dipping since Russia has begun its conflict with Ukraine.
YouTube Shorts, the platform’s new interface that is reminiscent of TikTok, generates 30 billion views per day. This is four times more than last year.
In an interview with Wired, CEO Sundar Pichai reflects on the recent change of YouTube. He said, “It’s been a ton of investment in online video and innovation, but there are 2 billion logged-in viewers who visit YouTube every single month. More people are creating content on YouTube than ever before. With all these new technologies, the team remains focused on trying to innovate.
TikTok has reached 1 billion monthly active users, many of whom watch one video every month. It is safe to assume that there are at least 33 million views on TikTok per day, as each user watches at least 1 video per month.
Now that YouTube has been around for a while, they are now testing ads on YouTube SHorts. This will help YouTube bring in more ad revenue. YouTube also introduced a $100 million creator fund to try to woo TikTok stars over to their platform last year.
More and more YouTube users are watching shorter videos, but Google is pushing for consistent monetization. The team also wants to push for ads to “close the gap” with traditional YouTube ads.
Alphabet doesn’t provide specific information on subscriber numbers, but the increase in subscribers was enough to offset the decrease in Google Play revenue. Google Play has lowered developer fees down to 15% or less, reducing them from 30%.
Google CEO Sundar Pichai said, “This has impacted our short-term operations, but we think it’s the right decision in the long term to help continue supporting desiring ecosystem growth.”
The company’s revenue increased by 23% due to people running searches on Google.