Google’s parent company Alphabet has just announced its first-quarter earnings. For the creators on YouTube, this indicates a lot of updates and news.
Creators on the YouTube platform earn a healthy 55% of revenue from advertising, and the platform is viewed as a very ripe ground in the case of content monetisation. This is in stark contrast to TikTok, where the creator fund is dwindling, according to the latest reports.
The CEO of Alphabet and Google, Sundar Pichai, announced that the amount of YouTube channels making over $10,000 in revenue has increased by 40% each year.
However, viewed impartially, YouTube has missed its ad revenue quarterly projections. When it was expected to garner $7.51 billion, it actually brought in $6.87 billion. While it is higher than last year’s first-quarter earnings of $6 billion, some are concerned.
CFO of YouTube, Ruth Porat, has said this slow growth rate is a more realistic reflection of the gains of last year. The pandemic had a part to play in YouTube ad revenue growing just 49% last year. The other factor for the revenue loss was a dearth of European advertisers who cut down on expenses due to the Russia-Ukraine war.
Sundar Pichai also said that YouTube Shorts, a clone of TikTok, was garnering 30 billion daily views. This number is 4 times that of last year. There are 2 billion users logged in to YouTube every month, and there are increasing numbers of people creating content on this platform. Pichai signed off by saying that the YouTube team is focused and committed, having nothing to fear from TikTok.