ADVERTISING SPENDING

YouTube revenue slides as digital adspend continues to slow down

By our News Team | 2022

The well-known video-sharing site has consistently underperformed in 2022 and failed to meet the market’s revenue expectations.

In another sign of tougher times for online advertising worldwide, Alphabet – the parent company of Google and its subsidiaries such as YouTube – recently announced that overall revenue growth has drastically declined from 41% a year ago to just 6% in the last quarter.

Among the key advertising sectors that reduced their spending with Alphabet are financial services, insurance, loans and mortgage, and crypto industries, the company’s Chief Business Officer, Philipp Schindler, confirmed.

Advertising Spending

Photo by Szabo Viktor on Unsplash

While adspend on Google Search declined in the last quarter, YouTube has been particularly hard it, and declined 2% compared to the same period last year. The well-known video-sharing site has consistently underperformed in 2022 and failed to meet market expectations.

In contract, 2021 was a year in which YouTube performed strongly on the financial front and in Q3 2021 its revenue was more than 40% up on the same period in 2020.

“YouTube’s challenge is that it’s pivoting focus to Shorts, which is in the early days of monetisation,” reported the digital marketing industry website, Marketing Dive. 

Shorts limits video pieces to 60 seconds

Shorts is a short-form video-sharing platform offered by YouTube. The platform hosts user content much like YouTube’s primary service, but limits pieces to 60 seconds in length.

Continued Marketing Dive: “As the TikTok copycat commands a larger share of overall YouTube watch time, mature areas of the platform could see their engagement and revenue affected. 

“Shorts currently draws about 1.5-billion users every month and generates 30-billion daily views. It began running ads globally in May, but the real question is whether it can retain the right talent in an increasingly creator-driven economy.”

According to news agency Reuters, Q3 2022 was the first time YouTube’s ad revenue shrank on a year-over-year basis since the company started breaking out the division’s results in 2019.

Google Play, the company’s mobile app store, has also seen user engagement wane, including in categories like gaming.

Concluded Marketing Dive: “It’s another signal that marketers are pulling investments away from some digital channels amid an economic downturn and rising competition.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.