Google appears to be in control of a major television network. According to internal data obtained by The Information, nearly half the time spent viewing the Alphabet company’s YouTube platform — 45 percent — now takes place on TV screens. That’s a significant increase from the 30 percent viewership the company reportedly logged for 2020. Coming on the heels of the IAB NewFronts, where digital platforms including Meta, TikTok and Snap were among those vying for advertiser attention, the story is well timed to help YouTube distinguish itself from competitors that seem focused largely on reaching mobile viewers.

“The fast growth has propelled YouTube from a digital-only platform often left out of the conversation of broader entertainment and TV advertising to a direct, major competitor with the world’s largest streaming services,” according to Insider Intelligence.

In fact, time spent viewing YouTube content on TV screens “now exceeds any other individual network or streaming service,” Insider Intelligence reports, referencing “Nielsen data cited by The Information.”

That none of the many articles triggered by The Information’s piece mention what viewer demographic YouTube is drawing to TV screens is somewhat curious. The Information says YouTube is helping to drive an “ad shift” to streaming.

MediaPost notes that the Google-owned platform is scheduled to return to TV Upfronts “in New York with a May 17 presentation at Lincoln Center,” adding that “not inconsequentially, that is the same day Netflix has its first-ever Upfront event,” a couple of blocks away at the Paris Theater.

Short of some major changes in viewing habits, it’s unlikely that after conquering television YouTube will set its sights on theatrical. Insider Intelligence reports that “the majority of TV user growth is coming from YouTube’s free, standard service,” which is largely comprised of user-generated content, like how-tos, or repurposed material (such as theatrical trailers or comedy skits), representing a cost savings.

Although “‘standard’ YouTube is the main driver of growth,” YouTube TV is a beneficiary of Alphabet’s recent $14 billion licensing deal for NFL Sunday Ticket. “YouTube’s pricing makes the weekly game more expensive to view, but it’s cheaper if you subscribe to YouTube TV,” writes Insider Intelligence.

The hefty price tag has been “offset by YouTube’s massive overall advertising growth ($15.1 billion in 2019 to $29.2 billion in 2022),” Insider Intelligence reports, noting that “advertisers are already paying to get on board.”

A recent iSpot survey querying advertisers on how they planned to allocate their Upfront spends, “YouTube TV was ranked second (48 percent) behind Hulu (74 percent),” Insider Intelligence says, adding that “YouTube could land $7 billion in ad commitments during the Upfront season.”

Related:
YouTube TV Is Now Reportedly the 5th Largest TV Provider in the United States, Cord Cutters News, 5/6/23