YouTube’s global advertising revenue is set to rise 4.0% in 2023 to reach $30.4bn – double the rate of growth recorded last year

More than one billion hours of video are watched every day on YouTube globally. In the US YouTube is the biggest TV streaming platform since overtaking Netflix

WARC Media's Platform Insights: YouTube

YouTube, hit hard by the digital ad market slowdown, remains popular among consumers. It reaches half of all internet users globally (2.07 billion), and commands a strong position in the online video advertising market.

With advertising investment forecast to reach $30.4bn globally, the Alphabet owned video platform is actively looking for ways to forge deeper connections with viewers, creators and brands through multi-format video strategies.

YouTube is prioritising Shorts and Connected TV engagement, and is innovating with unskippable 30s ads and “pause experiences” on TV to help marketers engage audiences across screens and achieve both performance and brand building goals.

WARC Media’s latest Platform Insights report provides an overview of the key datapoints that advertisers need to know about YouTube, spanning investment, consumption and performance insights.

Alex Brownsell, Head of Content, WARC Media, says: “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.

“In this WARC Media’s Platform Insights report, we take a closer look at YouTube to provide marketers with evidence-based insights on the challenges and opportunities the platform offers at a time when ad formats and technologies are fast evolving and understanding audiences is becoming ever more important.”

Ad investment with YouTube is set to rise 4.0% this year to a total of $30.4bn

The worldwide slowdown in digital ad investment has had an impact across the industry. However, YouTube has been hit harder than most. Q4 2022 ad revenue declined 8.8% year-on-year, as marketers shifted investment to retail media and search and it battled against TikTok, Instagram Reels and Apple’s ATT.

This year, YouTube’s ad revenue is set to rise 4.0% to a total of $30.4bn. This is more than double the rate of growth recorded in 2022, with ad revenues expected to recover in the second half of this year.

As trading conditions become more favourable, WARC Media forecasts YouTube’s revenue growth to accelerate 10.3% in 2024, to reach $33.5bn by the end of the year.

Retail brands are expected to spend $4.1bn on YouTube ads this year, up 4.6% on 2022

Retail remains YouTube’s most important category for ad investment: retailers are expected to spend $4.1bn on YouTube ads this year, a 4.6% rise on 2022, according to WARC Media data.

Yet growth from other sectors has been harder to achieve. WARC Media data forecasts an increase this year in technology and electronics (+8.0%) and toiletries and cosmetics (+4.3%).

A WARC survey of marketers in Asia Pacific found that YouTube is the most popular platform for digital display. Nearly half (49%) of brands in the region run display ads on YouTube. However, it appears less appealing to APAC marketers (17%) from a shoppable advertising perspective.

YouTube advertisers can reach 2.07 billion, half of all internet users globally. More than one billion hours of video are watched every day on YouTube

YouTube is the world’s most popular online platform and more than one billion hours of video are watched every day on YouTube, per Alphabet data. Its adult advertising reach is estimated to be 2.07 billion, almost twice as much as TikTok and Instagram respectively, according to Kepios.

As the platform looks to improve user engagement and make it more shoppable,YouTube Shorts (videos lasting 60 seconds or less) will provide more opportunities for marketers to reach new audiences.

However, Shorts’ 50 billion daily viewer total is some way behind the 140 billion daily views achieved by Instagram Reels, while under 18s spend on average 60% longer on TikTok than with YouTube content.

Overtaking Netflix in 2022, according to Nielsen, YouTube is the most popular ad supported streaming service in the US, accounting for 22.9% of OTT viewing in March 2023. It is also the most popular channel for US Gen Zs to use to catch up with sports news, and last year, it was the most popular platform for both music and podcast listening in the US.

APAC is a key growth region for YouTube – from live shopping and Shorts to gaming. The region’s high mobile penetration, advanced e-commerce, and influencer culture has helped to shape YouTube’s global strategy.

YouTube delivers brand impact more cost-effectively than any other video platform, especially in Latin America, according to research by Kantar.

The winning team stands a chance to secure an educational scholarship of 1 crore

Quizzing in India is set to get its biggest impetus as Sony LIV announces, "Quizzer Of The Year" (QOTY), a nationwide quiz challenge. Aimed at students from grades IX to XII (9th to 12th) for the academic year 2023-24, QOTY seeks to engage young minds with passion and curiosity for learning and quizzing. QOTY is helmed by India’s grand quizmaster, Siddhartha Basu, co-designed & created together with Anita Kaul Basu and the team at Tree of Knowledge Digital (Digitok).

Today, along with academic excellence, what makes a student stand apart is the ability to absorb knowledge from everywhere, not just textbooks, and to experience the world with curiosity. QOTY provides them with a platform to test their abilities and knowledge against their peers from across the country.

Students can easily participate with a simple registration on the Sony LIV app followed by answering seven questions every day. Throughout the contest, participants will have an opportunity to win exciting daily, weekly, and monthly prizes, including the chance to be featured on Sony LIV. The final winners will be awarded an educational scholarship of 1 crore and the prestigious title of "Quizzer Of The Year”. The scope of the quiz will be their school curriculum and general knowledge.

Users can find all information on the format, structure, eligibility, gameplay, steps to register, and frequently asked questions on the Sony LIV website - www.sonyliv.com/qoty.

Comments:

Aman Srivastava - Head of Marketing, SonyLIV

India's young population is a vibrant and dynamic demographic with immense potential. They are a tech-savvy generation with a quest for knowledge and personal growth. Quiz challenges as a format provides them a platform to showcase their intelligence and competitive spirit, encouraging them to expand their horizons. With our legacy of talent formats including Shark Tank India and MasterChef India, we are proud to announce Quizzer Of The Year. We are delighted to partner with Mr. Basu and are confident that QOTY will become the ultimate destination for young quiz enthusiasts across India.

Siddhartha Basu, Presenter and Creator

Our team at Tree of Knowledge Digital (Digitok), with decades of know-how behind us, has worked long and hard to develop QOTY as a stimulating year-round engagement, where users can play a snap quiz daily, and instantly review their performance and ranking. We’re fortunate and grateful to Sony LIV for their active support in making this the biggest schools initiative of its kind that we’ve seen so far. Students can not only play and put their knowledge to the test every day, but also compete and make their mark in school, zonal and national rankings, culminating in a national play-off for top honours and terrific prizes. It is an engagement which is free and open to all, and our intention is to foster a growth of awareness and a factual culture of depth and accuracy. I hope every young person in this age group signs up, plays and enjoys QOTY.

Signaling Continued Growth in Consumer Confidence

As marketers seek to reach shoppers over the next few months, out of home advertising shows renewed, strong engagement for brands, especially across pharmaceuticals, video streaming networks, luxury, and alcohol

Americans remain undaunted when it comes to spring and summer spending on travel, gifts, and luxury items. That’s the overarching view from a Harris Poll survey conducted with the Out of Home Advertising Association of America (OAAA), the national trade association for the entire out of home (OOH) media ecosystem.

Emerging from the uncertainty of the last few years, these latest findings pinpoint where consumer spending is the strongest right now, examine how any lingering unease is impacting spending priorities, and highlight key categories where OOH advertising is highly effective.

“Americans are adapting to continuous volatility with a new strategy: patience. While spending intent remains strong – especially in travel and experience-seeking – nearly half of all springtime shoppers are not tied to a specific timeline. Instead, they are moving week-to-week so as not to expose their household budgets to unnecessary risk. Overall, the mood remains upbeat because we want to travel, spend time with family and friends, and enjoy life,” said John Gerzema, CEO of The Harris Poll.

The report, “OOH Consumer Insights & Intent — Q1 2023,” examines consumer attitudes towards OOH ads from pharmaceutical companies, video streaming networks, luxury apparel brands, and alcoholic beverage marketers.

The topline findings include:

Summer Travelers Devoting More Dollars to Travel: A third of travelers (32%) surveyed plan on spending more on 2023 summer vacation compared to 2022. About 78% of the increased spenders say they expect to spend up to 50% more this summer versus the same period last year.

Summer Vacation Travel is up, but Slightly Shortened From 2022: Almost 90 percent of consumers plan to travel (89%), up from 85 percent last year. Six in 10 (59%) summer vacationers plan on taking less than two weeks off, while four in 10 (41%) plan on taking two weeks or more, which is down slightly from summer 2022 vacationers (48%).

And Some Groups Are Looking for Longer R&R: The groups most likely to take 2+ weeks for vacation are Gen Zers (49%), Urban 1M+ (45%), men (44%), and Gen Xers (43%).

Personal Trips: Personal vehicles (75%) remain the most common mode of transportation planned among summer travelers, with planes (59%) in second place followed by trains (15%), buses (10%), and subway/light rails (9%).

A Continued Shift Back to IRL: With concerns about COVID at record lows, consumers are looking to real life experiences this summer. Almost 90 percent plan to visit beaches or lakes (89%), and about two-thirds plan to stay in hotels during their vacation (66%).

Highest Intended Spending Expected in May: About 47% of springtime shoppers say they are not tied to a specific timeline for shopping for holiday/event gifts. Roughly a quarter of respondents plan to spend “a little each month,” while 23% have no monthly budgeting set in place. Meanwhile, 57% of Boomers and 54% of women are the most likely to keep options open on a monthly basis. Overall, the month of May generates the highest intended spend at 20%.

OOH Ads are Especially Influential With Younger Springtime Shoppers: Over half of Gen Z and Millennial shoppers say OOH ads impact their spring holiday or event gift purchases, with Mother’s Day leading the way (77% and 70%, respectively).

“Despite these unpredictable times, consumer confidence is growing. There’s a renewed desire to spend on travel and in-person experiences, and our research sheds light on OOH’s impressive impact here,” said Anna Bager, President and CEO, OAAA. “A third of consumers plan on spending more on summer vacations this year. This is a huge opportunity across national and local brands to engage the OOH medium.”

With the amount of seasonal spending and the modes of transportation people are factoring into their spring and summer plans, the opportunities to engage these consumers via OOH advertising is clear. That’s particularly true for marketing categories in medical drugs, high-end apparel, connected TV, and alcoholic beverages.

Consumer interest in OOH advertising messages is high across these categories: TV/video streaming product category (86%), alcoholic beverages (80%), pharmaceutical products (79%), and luxury apparel (77%).

The ability to capture consumers’ attention is further manifested in the significant notice rates The Harris Poll recorded for those product categories. For example, OOH ads for alcoholic beverages ranked highest with 64% of Americans 21 or older saying they remembered a placement. Alcohol OOH ad recall was followed by TV/video streaming (59%), pharmaceutical products (54%), and luxury apparel (47%).

The report found engagement after seeing an OOH placement for pharmaceutical, luxury apparel, or TV/video streaming is most likely to be a variation of online interaction (e.g., visit the company site, search for the brand/product online) while engagement for alcoholic beverages is most likely to lead to purchasing a product at a retail store.

Methodology

The Harris Poll conducted the online survey from February 14-21, 2023, with a representative sample of 1,005 U.S. Adults 18-64. Data is weighted to reflect the U.S. general public across age, gender, race/ethnicity, region, income, household size, and employment.

OOH Produces Second-Largest First Quarter Volume in History of the Medium

Out of home (OOH) advertising revenue increased one percent in the first quarter of 2023 compared to the previous year, accounting for $1.82 billion, based on figures released by the Out of Home Advertising Association of America (OAAA).

Despite economic headwinds, the quarter was the second highest in first quarter volume in the history of OOH, and also outpaced Q1 2019. Digital OOH, which accounted for over 31 percent of sales, increased 4.3 percent from a year ago. The Billboard category almost doubled the overall OOH growth rate by rising 1.9 percent.

“Out of home advertising’s resiliency continued in the first quarter despite a challenging ad marketplace. Our medium is well-positioned to connect with consumers at the most critical moments to drive awareness and engagement, which is why OOH continues to thrive,” said Anna Bager, President and CEO, OAAA. “Our recent research work with The Harris Poll and Morning Consult showcases OOH’s resonance with retail shoppers and underpins our strength as a results-producing marketing channel.”

Five of the top 10 product industries increased in volume, and two rose double digits, led by Public Transportation, Hotels & Resorts (+40%); and Schools, Camps, & Seminars (+17.3%), reflecting continued growing consumer demand for real-life experiences.

Five of the top 10 OOH product categories produced increases of 25 percent or more compared to Q1 2022, including:

Legal Service +40.4%

Religious, Charitable & Humanitarian +37.5%

Colleges & Universities +29.5%

Domestic Hotels & Resorts +29.1%

Quick Service Restaurants + 24.5%

Ranked in order of OOH spending, the top 10 advertisers in the first quarter were Apple, McDonald’s, American Express, Expedia, Verizon, Dunkin, JP Morgan, T-Mobile, Coca-Cola, and IHG.

Four in five of the top 100 OOH advertisers increased their OOH spend from Q1 2022, and over one-quarter (26%) more than doubled their spend. The top five advertisers with the greatest percentage of increased spend compared to Q1 2022 included: Meta, City University of NY, Emirates Airlines, HeGetsUs.com, and Chrysler; while the top five with the greatest dollar spend increase were Expedia, JP Morgan, IHG, American Express, and Panera.

Almost one-quarter (23%) of the top 100 OOH spenders were technology or direct-to-consumer brands, including these eight brands which finished among the top 20 (according to spend): Apple, Expedia, Verizon, T-Mobile, Amazon, Uber, Netflix, and FanDuel.

OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Vivvix (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include digital and static billboard, street furniture, transit, place-based, and cinema advertising.

“The People's Space" by Rick Robinson, CEO of PJX Media. A quick-moving and entertaining look at the role of OOH media's impact in the public space.

Recent OBIE, DRUM, and Cannes winners are featured to explore how creative thinking and OOH Media work together to bring forward intrigue, humor, and the sweet spot between content and context. No charts or maps, just eye candy. 20 minutes.

Speaker Profile

Rick Robinson is an OOH Media executive, public speaker, author, and sculptor. He started in the OOH business as a local salesperson and has developed, marketed, planned, or bought virtually all forms of traditional and non-traditional OOH media over his 37-year career. Rick is currently the Chief Executive Officer of NY-based OOH agency and AdTech provider PJX Media.

Previously Rick served as the Chief Creative Officer in Residence at the OAAA and as a member of West Hollywood’s Design Excellence Review Committee for the Sunset Strip.

His legacy of achievement stretches across multiple disciplines including local and national sales, OOH media planning & buying, product development, marketing & promotions, legislative testimony, creative commentary, data science applications, and executive leadership. Rick is internationally recognized as one of the most versatile, influential, and passionate advocates in the OOH industry today. He is a highly requested public speaker for trade groups, ad clubs, universities & OOH companies across the globe.

Rick is a powerful communicator, relationship builder, change agent, and inspired leader. He has delivered value and growth at every organization throughout his career. His calling card is one of strategic thinking coupled with innovative solutions leading to material business outcomes. He is forward-leaning yet prudent, gains consensus where needed, and is well-known for representing the highest levels of fairness and integrity.

As an energized catalyst for the business, he has been recognized with the industry’s most prestigious honors (OAAA Hall of Fame & The L. Ray Vahue Marketing Award of Merit). Rick believes OOH is at its best when media, creativity, and technology work together to achieve a perfect merger of content and context - all in service of the public realm. The OAAA published his book on the topic, “The People’s Space”, in 2013.

Rick’s personal pursuits include local pro-bono work for the arts as Board President and Advisor for Art Share LA where he gained LA City Council recognition while rescuing and stabilizing the organization after the 2008 recession. He has shown his Primitive Pop steel sculptures at galleries all over the world, and his secret indulgence is racing stock cars with his father in Northern California.