These #’s highlight YouTube’s ad load problem compared to TikTok:
15 second videos with a built-in ad break between each one (TikTok) > 15+ minute vids with long pre-rolls + some awkward mid-rolls (YouTube)
Don’t be surprised when TikTok is eventually valued higher than YouTube
15 second videos with a built-in ad break between each one (TikTok) > 15+ minute vids with long pre-rolls + some awkward mid-rolls (YouTube)
Don’t be surprised when TikTok is eventually valued higher than YouTube
Just by the nature of how advertising works, YouTube also leaves a ton of value on the table to be captured by advertisers.
CPM’s have to rise + these video platforms will strategically move further into their own advertisers’ turfs (commerce, gaming, etc) to increase margins.
CPM’s have to rise + these video platforms will strategically move further into their own advertisers’ turfs (commerce, gaming, etc) to increase margins.
This is one of the reason we see ByteDance and Google getting into mobile gaming (+ Facebook and Snap to an extent).
That said, I’m skeptical these massive corporations with ad-driven business models have the DNA to move fast into other categories. There’s lots of opportunities!
That said, I’m skeptical these massive corporations with ad-driven business models have the DNA to move fast into other categories. There’s lots of opportunities!
Crazy to say, but I wouldn’t be surprised if it’s a video review-first retailer that eventually beats Amazon (think RED / Xiaohongshu in China) in e-comm. One of Amazon’s biggest weakness is reviews, and UGC reviews could be a very interesting front to try and take them on!
