Podcasters seeking to increase their revenue through YouTube distribution can expect positive developments. Marketing insights company, WARC Media predicts that YouTube’s advertising revenue will grow at twice the rate in 2023 compared to the previous year.
In 2022, the video streaming site experienced a decline in ad revenue due to a global slowdown in digital ad spending. This year, YouTube’s ad revenue is projected to grow by four percent, reaching a total of $30.4 billion, which is more than double the growth rate seen in 2022. Ad revenues are anticipated to recover in the second half of this year.
“It’s been a tricky 12-month period for YouTube, which is increasingly battling on two fronts, against short-form video platforms like TikTok as well as long-form content streamers in the connected TV space. However, as trading conditions improve in digital advertising, YouTube can expect to see revenue growth improve,” said Alex Brownsell, Head of Content at WARC Media.
This forecast signifies a turnaround for YouTube, which faced an 8.8% decline in ad revenue during the fourth quarter of the previous year. The decline was attributed to marketers shifting their investments to retail media and search, as well as increased competition from TikTok and Instagram Reels. Additionally, YouTube faced challenges from Apple’s App Tracking Transparency framework, which required user authorization for app tracking.
As trading conditions improve, WARC Media predicts that YouTube’s revenue growth will accelerate by 10.3% in 2024, reaching $33.5 billion by the end of that year. Retail remains the most significant category for ad investment on YouTube, with retailers expected to spend $4.1 billion on YouTube ads in 2023, a 4.6% increase compared to 2022, according to WARC Media data.
However, growth from other sectors has been more challenging to achieve. WARC Media data forecasts growth this year in the technology and electronics sector (+8.0%) and toiletries and cosmetics sector (+4.3%).
As podcasters embrace YouTube as a means to expand their audiences, WARC Media data suggests significant potential. YouTube has a global reach, reaching half of all internet users worldwide, equivalent to 2.07 billion people—almost twice the reach of TikTok and Instagram combined, according to Kepios. Furthermore, more than one billion hours of video are watched on YouTube daily.
According to Nielsen, YouTube surpassed Netflix in 2022, making it the most popular ad-supported streaming service in the United States, accounting for 22.9% of OTT viewing in March 2023. It is also the preferred platform for U.S. Gen Z users to catch up on sports news and was the leading platform for music and podcast listening in the U.S. last year.