Youtube Cites Enthusiasm for CTV Roadmap to Boost Meek Ad Sales Growth

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Alphabet Inc., the parent company of Google and YouTube, reported a 4.8% increase in second-quarter ad sales for its video platform. Investors and executives at Alphabet are looking ahead and expressing enthusiasm for plans involving connected TV.

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Advertising accounts for the majority of Alphabet’s revenue. The company provides advertisers with a performance-based option for reaching their target audiences. Through subscriptions, advertising fees, and brand sponsorships, YouTube has become a significant source of Alphabet’s revenue.

In the second quarter of this year, YouTube’s ad revenues grew by 5%—a significantly slower rate than in previous quarters. In Q2 2021, YouTube’s then-record high ad revenue spiked 84% to $7.34 billion. Alphabet CFO Ruth Porat noted that the company’s recent growth rate was slowed by a difficult comparison to last year, which marked a rebound after 2020’s challenging quarter during the onset of COVID.

The COVID pandemic forced many companies to rethink where they were spending their advertising dollars, which dampened marketing spending. YouTube, Google, and their parent Alphabet felt the impact of this downturn, but they have steadily grown as the market recovers.

Growth in YouTube Shorts 

YouTube Shorts have significantly increased advertising viewership and engagement on the platform. In addition, the platform’s short-form video feature is reminiscent of TikTok.

Since launching less than two years ago, YouTube Shorts has received more than 15 billion views daily. That’s up from 6.5 billion daily views just three months after the product launched in March 2021—an impressive 190% increase.

Connected TV Expansion

Connected TV, or what Alphabet called “CTV,” was one of the strategies that helped contribute to Google’s first-quarter earnings growth. Partnerships will drive growth and innovation for both partners and advertisers. 

CTV’s global reach will give Google a significant boost, especially as it expands internationally. With more than 1 billion active monthly users, YouTube is already a robust platform that can drive brand awareness and increase sales.

Neilsen

Last week, Nielsen announced a new product that compares the audience reach of YouTube videos with television broadcasts. The Four-Screen Ad Deduplication tool compares the data from four screens and eliminates redundant audience information.

According to Nielsen, U.S. adults spend more time watching YouTube on connected TVs than any other ad-supported streaming service.

YouTube

YouTube began adding features to its mobile app in May. New features allow users to interact with video content they are viewing on their screens in new ways.

Shopify

Last week, YouTube announced a partnership with Shopify to help creators more easily link their stores to YouTube, allowing fans who watch live streams or videos to make purchases directly from the streaming platform.

Roku

Roku has partnered with Walmart, allowing users to purchase products directly through the Roku platform.

Source: Fierce Video