ZDNET
Is Google collapsing right before our eyes? Legal battles are mounting, its AI products are “meh” at best, and the traditional search model faces real disruption from AI. Things don’t look great.
But despite all that, what if I told you I’m still bullish on Google — just not for the reason you think? 🤓☝️
Here’s what’s fascinating about that stat.
These podcast episodes are often available elsewhere in audio-only formats. Yet, audiences are choosing YouTube, a visual platform. This tells me people are seeking personal connections with podcast hosts. They don’t just want to hear hosts; they want to see them in action. It shows people still value human connection more than the next AI trend. 🤔
It’s so easy to get caught up in whether this is a video or a podcast and ignore what’s happening, which is our desire as humans to connect.
This story is way more fascinating than a billion podcast views.
Before we jump in, let me introduce myself. I’m Lester, but you can call me Les. 👋
The numbers tell a compelling story
Google acquired YouTube from Chad Hurley, Steve Chen, and Jawed Karim in 2006 for $1.65 billion. Many people thought Google overpaid at the time, but let’s dive deeper into why this might be one of the best acquisitions ever.
Google Year Ended December 31, 2024
Google FORM 10-K
- Google Search & Other: $198.1 billion
- YouTube Ads: $36.1 billion
- Google Network: $30.4 billion
- Google Subscriptions, Platforms, and Devices: $40.3 billion
- Google Cloud: $43.2 billion
- Other Bets: $1.6 billion
- Total revenue: $350.0 billion
Source: Google FORM 10-K for the fiscal year ended Dec. 31, 2024
At first glance, it looks like Google Cloud is Google’s second-largest segment, followed by Google Subscriptions, making YouTube Ads number four.
So I know what you’re thinking: Being number four hardly makes it the future. Impressive, sure, but maybe you’ve unraveled your own string here.
But what if I told you YouTube revenue is included in “Google Subscriptions”? 🤓☝️
That said, Google doesn’t clearly explain how much of the $40.3 billion comes from the YouTube platform, but based on their description and choice of phrasing like “primarily include,” it’s safe to assume YouTube generates significantly more revenue than just the $36.1 billion reported. This would mean YouTube, not Google Cloud, is actually Google’s second-biggest business.
As I said, this story is way more interesting than podcast views.
Here’s why all of this matters to you
Remember when I mentioned the incredible growth of podcasts on YouTube? Given the recent surge in views and revenue growth in 2024, it’s not crazy to think that YouTube, even after 20 years and over $40 billion in revenue, is just getting started.
The opportunity here is twofold. 🕵
The best time to start advertising would have been 10 years ago, but right now is as good a time as any to market your product or service on the platform. What I love most about YouTube is that you can work directly with creators, and your reach isn’t throttled like on other platforms.
This approach works because viewers spend over 40 minutes per session on YouTube, highlighting the power of human connection. In fact, 75% of B2B buyers and 84% of C-level/vice president (VP) executives surveyed use social media to make purchasing decisions. 📢
Here are the statistics I find most interesting: A large segment of YouTube’s audience is aged 18 to 34, but it remains popular across all generations, indicating it has staying power. This broad appeal is crucial if you are going to invest time in building an audience. Moreover, with YouTube’s podcasting growth, you can tap into a highly engaged audience that is increasingly seeking visual content alongside traditional audio podcasts.
My two cents
I’ll leave you with this: YouTube Ads grew while Google Network ads declined, signaling a clear shift toward video-first engagement.
It’s not hard to see why I’m so bullish on YouTube being the future of Google instead of AI.
Of course, Google will integrate AI into all its products, but based on the current evidence, I don’t think AI will be the main event. It’ll be more like a side hustle unless something fundamentally changes. 😤
This story isn’t just about podcasts or revenue. It’s proof that people crave genuine connection, and your audience is waiting for you.
😇 Hope this helps. I’m rooting for you.
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