Is Google collapsing proper earlier than our eyes? Authorized battles are mounting, its AI merchandise are “meh” at greatest, and the standard search mannequin faces actual disruption from AI. Issues do not look nice.
However regardless of all that, what if I advised you I am nonetheless bullish on Google — simply not for the explanation you suppose? 🤓☝️
Hear me out. I do know this sounds unbelievable, however YouTube, not AI, is perhaps Google’s saving grace.
Amid the tumultuous previous 12 months, YouTube has quietly achieved exceptional success on the planet of podcasting. With over 1 billion month-to-month views — sure, billion with a B — YouTube is quietly changing into the main platform for podcast consumption.
This is what’s fascinating about that stat.
These podcast episodes are sometimes accessible elsewhere in audio-only codecs. But, audiences are selecting YouTube, a visible platform. This tells me individuals are looking for private connections with podcast hosts. They do not simply need to hear hosts; they need to see them in motion. It reveals folks nonetheless worth human connection greater than the subsequent AI development. 🤔
It is really easy to get caught up in whether or not it is a video or a podcast and ignore what’s taking place, which is our want as people to attach.
On this article, we’ll pull on the thread of what Google’s future might appear to be, why I am bullish on Google even with all of the drama, and the way this is perhaps your massive alternative to thrive within the years forward. 🚀
This story is far more fascinating than a billion podcast views.
Earlier than we leap in, let me introduce myself. I am Lester, however you may name me Les. 👋
I am a founder with a profitable exit, govt chairman of a number of DTC manufacturers, and an award-winning efficiency marketer.
My job is analyzing knowledge and recognizing developments, so we have constructed instruments to do this exactly. For those who like data-driven advertising insights, try my free publication, No Fluff Simply Information. All that mentioned, let’s get into why I am so bullish on Google.
The numbers inform a compelling story
Google acquired YouTube from Chad Hurley, Steve Chen, and Jawed Karim in 2006 for $1.65 billion. Many individuals thought Google overpaid on the time, however let’s dive deeper into why this is perhaps among the best acquisitions ever.
Do not quote me on this, however from the skin trying in, YouTube all the time felt like Google’s facet hustle. I am not saying Google would not take YouTube severely, nevertheless it looks as if they purposely downplay their possession — virtually as in the event that they’re saying, “We’re all about search, and we form of do video, too.” However hey, possibly that is simply me. 🤗
It is sensible why Search is the star of the present, as it is a large a part of their enterprise. Nonetheless, there are 36 billion the explanation why you need to take note of YouTube.
This is Google’s income breakdown:
- Google Search & Different: $198.1 billion
- YouTube Adverts: $36.1 billion
- Google Community: $30.4 billion
- Google Subscriptions, Platforms, and Units: $40.3 billion
- Google Cloud: $43.2 billion
- Different Bets: $1.6 billion
- Complete income: $350.0 billion
Supply: Google FORM 10-Ok for the fiscal 12 months ended Dec. 31, 2024
At first look, it appears like Google Cloud is Google’s second-largest section, adopted by Google Subscriptions, making YouTube Adverts quantity 4.
So I do know what you are pondering: Being quantity 4 hardly makes it the long run. Spectacular, positive, however possibly you have unraveled your personal string right here.
However what if I advised you YouTube income is included in “Google Subscriptions”? 🤓☝️
This is how Google describes this enterprise unit:
Google subscriptions, platforms, and units revenues are comprised of the next: client subscriptions, which primarily embrace revenues from YouTube companies corresponding to YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, in addition to Google One; platforms, which primarily embrace revenues from Google Play gross sales of apps and in-app purchases; units, which primarily embrace gross sales of the Pixel household of units; and different services.
It’s form of unusual they do not group YouTube TV, YouTube Music, and YouTube Premium underneath one thing like “YouTube Subscriptions.” I imply, YouTube is correct there in every product title, so putting this income in “Google subscriptions, platforms, and units” is an attention-grabbing alternative. 🤨
That mentioned, Google would not clearly clarify how a lot of the $40.3 billion comes from the YouTube platform, however based mostly on their description and selection of phrasing like “primarily embrace,” it is secure to imagine YouTube generates considerably extra income than simply the $36.1 billion reported. This could imply YouTube, not Google Cloud, is definitely Google’s second-biggest enterprise.
The facet hustle is crushing it. YouTube’s income retains climbing, and it is changing into much more culturally related. 🤑
As I mentioned, this story is far more attention-grabbing than podcast views.
This is why all of this issues to you
Keep in mind after I talked about the unbelievable progress of podcasts on YouTube? Given the current surge in views and income progress in 2024, it isn’t loopy to suppose that YouTube, even after 20 years and over $40 billion in income, is simply getting began.
The chance right here is twofold. 🕵
The perfect time to start out promoting would have been 10 years in the past, however proper now’s pretty much as good a time as any to market your services or products on the platform. What I really like most about YouTube is you could work instantly with creators, and your attain is not throttled like on different platforms.
As an illustration, partnering with area of interest podcast creators can assist you faucet into extremely engaged audiences. It’s also possible to use YouTube adverts to unfold the phrase, however combining creators with YouTube adverts is a robust technique. In reality, based on a research by AspireIQ, influencer advertising earns 11x the ROI of a regular digital marketing campaign, and 92% of customers belief suggestions from pals, household, and influencers. 🤝
Past utilizing the platform as an promoting channel, the opposite massive alternative is changing into a creator your self. I am not saying you could be Mr. Beast, however there are numerous success tales of creators with small audiences who’ve constructed significant companies. A small enterprise proprietor can construct a loyal viewers and set up authority by beginning a podcast centered on business insights.
This method works as a result of viewers spend over 40 minutes per session on YouTube, highlighting the ability of human connection. In reality, 75% of B2B consumers and 84% of C-level/vice chairman (VP) executives surveyed use social media to make buying selections. 📢
Listed below are the statistics I discover most attention-grabbing: A big section of YouTube’s viewers is aged 18 to 34, nevertheless it stays well-liked throughout all generations, indicating it has endurance. This broad enchantment is essential if you’ll make investments time in constructing an viewers. Furthermore, with YouTube’s podcasting progress, you may faucet right into a extremely engaged viewers that’s more and more looking for visible content material alongside conventional audio podcasts.
My two cents
I will go away you with this: YouTube Adverts grew whereas Google Community adverts declined, signaling a transparent shift towards video-first engagement.
It is not onerous to see why I am so bullish on YouTube being the way forward for Google as a substitute of AI.
After all, Google will combine AI into all its merchandise, however based mostly on the present proof, I do not suppose AI would be the important occasion. It’s going to be extra like a facet hustle until one thing basically adjustments. 😤
However let’s put Google’s success apart for a second and concentrate on you. Now could be the proper time to launch your podcast or video. No matter you select to name it would not matter practically as a lot as placing your self on the market now.
AI can assist with duties like producing concepts, however the world should know who you might be and perceive the worth you deliver to {the marketplace}. Whether or not you companion with creators to assist inform your story or determine to do it your self, now’s your second. 💪
This story is not nearly podcasts or income. It is proof that individuals crave real connection, and your viewers is ready for you.
BTW, if you would like extra data-driven advertising insights, think about signing up for my free publication, No Fluff Simply Information. I share what’s working on the planet of promoting, AI developments you could take note of, actionable suggestions, and the occasional meme (being an grownup is overrated). Click on right here to enroll.
😇 Hope this helps. I am rooting for you.
