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 instructed 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, may be Google’s saving grace.
Amid the tumultuous previous 12 months, YouTube has quietly achieved exceptional success on this planet of podcasting. With over 1 billion month-to-month views — sure, billion with a B — YouTube is quietly turning into the main platform for podcast consumption.
Here is what’s fascinating about that stat.
These podcast episodes are sometimes out there elsewhere in audio-only codecs. But, audiences are selecting YouTube, a visible platform. This tells me persons are in search of 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 following 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 need as people to attach.
On this article, we’ll pull on the thread of what Google’s future may appear to be, why I am bullish on Google even with all of the drama, and the way this may be your massive alternative to thrive within the years forward. 🚀
This story is far more fascinating than a billion podcast views.
Earlier than we soar in, let me introduce myself. I am Lester, however you possibly can 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 traits, so we have constructed instruments to do this exactly. Should you like data-driven advertising insights, try my free e-newsletter, 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 may be top-of-the-line acquisitions ever.
Do not quote me on this, however from the surface trying in, YouTube all the time felt like Google’s aspect hustle. I am not saying Google does not take YouTube critically, but it surely looks as if they purposely downplay their possession — virtually as in the event that they’re saying, “We’re all about search, and we type of do video, too.” However hey, perhaps that is simply me. 🤗
It is smart why Search is the star of the present, as it is a huge a part of their enterprise. Nevertheless, there are 36 billion explanation why you must take note of YouTube.
Here 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 seems like Google Cloud is Google’s second-largest phase, adopted by Google Subscriptions, making YouTube Adverts quantity 4.
So I do know what you are pondering: Being quantity 4 hardly makes it the longer term. Spectacular, certain, however perhaps you’ve got unraveled your personal string right here.
However what if I instructed you YouTube income is included in “Google Subscriptions”? 🤓☝️
Here is how Google describes this enterprise unit:
Google subscriptions, platforms, and gadgets revenues are comprised of the next: client subscriptions, which primarily embody revenues from YouTube providers akin to YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, in addition to Google One; platforms, which primarily embody revenues from Google Play gross sales of apps and in-app purchases; gadgets, which primarily embody gross sales of the Pixel household of gadgets; and different services and products.
It’s type of unusual they do not group YouTube TV, YouTube Music, and YouTube Premium below one thing like “YouTube Subscriptions.” I imply, YouTube is correct there in every product identify, so inserting this income in “Google subscriptions, platforms, and gadgets” is an attention-grabbing selection. 🤨
That mentioned, Google does 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 embody,” it is protected to imagine YouTube generates considerably extra income than simply the $36.1 billion reported. This may imply YouTube, not Google Cloud, is definitely Google’s second-biggest enterprise.
The aspect hustle is crushing it. YouTube’s income retains climbing, and it is turning into much more culturally related. 🤑
As I mentioned, this story is far more attention-grabbing than podcast views.
Here is why all of this issues to you
Bear in mind after I talked about the unimaginable development of podcasts on YouTube? Given the current surge in views and income development 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 very best time to begin promoting would have been 10 years in the past, however proper now could be 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 that 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 may help you faucet into extremely engaged audiences. You may as well use YouTube adverts to unfold the phrase, however combining creators with YouTube adverts is a robust technique. In truth, in keeping with a research by AspireIQ, influencer advertising earns 11x the ROI of a typical 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 turning 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 targeted on business insights.
This strategy works as a result of viewers spend over 40 minutes per session on YouTube, highlighting the ability of human connection. In truth, 75% of B2B patrons and 84% of C-level/vp (VP) executives surveyed use social media to make buying choices. 📢
Listed here are the statistics I discover most attention-grabbing: A big phase of YouTube’s viewers is aged 18 to 34, but it surely stays well-liked throughout all generations, indicating it has endurance. This broad attraction is essential if you’ll make investments time in constructing an viewers. Furthermore, with YouTube’s podcasting development, you possibly can faucet right into a extremely engaged viewers that’s more and more in search of 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 isn’t arduous to see why I am so bullish on YouTube being the way forward for Google as an alternative 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 fundamental occasion. It will be extra like a aspect hustle until one thing essentially modifications. 😤
However let’s put Google’s success apart for a second and concentrate on you. Now’s the proper time to launch your podcast or video. No matter you select to name it does not matter almost as a lot as placing your self on the market now.
AI may help with duties like producing concepts, however the world should know who you’re 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 could be your second. 💪
This story is not nearly podcasts or income. It is proof that folks crave real connection, and your viewers is ready for you.
BTW, if you’d like extra data-driven advertising insights, contemplate signing up for my free e-newsletter, No Fluff Simply Information. I share what’s working on this planet of promoting, AI traits 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.
