Is Google collapsing proper earlier than our eyes? Authorized battles are mounting, its AI merchandise are “meh” at finest, and the standard search mannequin faces actual disruption from AI. Issues do not look nice.
However regardless of all that, what if I informed you I am nonetheless bullish on Google — simply not for the rationale you suppose? 🤓☝️
Additionally: Google launches Gemini with Personalization, beating Apple to non-public AI
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 outstanding success on the 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.
This 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 individuals are searching for 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 subsequent 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 occurring, which is our need as people to attach.
Additionally: The right way to obtain YouTube movies without cost – 2 methods
On this article, we’ll pull on the thread of what Google’s future may appear like, why I am bullish on Google even with all of the drama, and the way this may be your huge 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 may name me Les. 👋
I am a founder with a profitable exit, government chairman of a number of DTC manufacturers, and an award-winning efficiency marketer.
My job is analyzing knowledge and recognizing developments, so we have constructed instruments to try this exactly. In the event you like data-driven advertising and marketing insights, try my free e-newsletter, No Fluff Simply Details. 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 among the finest acquisitions ever.
Do not quote me on this, however from the skin trying in, YouTube at all times felt like Google’s facet hustle. I am not saying Google does not take YouTube significantly, however it looks like they purposely downplay their possession — virtually as in the event that they’re saying, “We’re all about search, and we form of do video, too.” However hey, perhaps that is simply me. 🤗
It is sensible why Search is the star of the present, as it is a huge a part of their enterprise. Nonetheless, there are 36 billion the reason why you need to take note of YouTube.
This is Google’s income breakdown:
Google Yr Ended December 31, 2024
Google FORM 10-Ok
- Google Search & Different: $198.1 billion
- YouTube Advertisements: $36.1 billion
- Google Community: $30.4 billion
- Google Subscriptions, Platforms, and Gadgets: $40.3 billion
- Google Cloud: $43.2 billion
- Different Bets: $1.6 billion
- Whole income: $350.0 billion
Supply: Google FORM 10-Ok for the fiscal 12 months ended Dec. 31, 2024
At first look, it appears like Google Cloud is Google’s second-largest phase, adopted by Google Subscriptions, making YouTube Advertisements quantity 4.
So I do know what you are pondering: Being quantity 4 hardly makes it the longer term. Spectacular, positive, however perhaps you’ve got unraveled your individual string right here.
However what if I informed you YouTube income is included in “Google Subscriptions”? 🤓☝️
This is how Google describes this enterprise unit:
Google subscriptions, platforms, and units revenues are comprised of the next: shopper subscriptions, which primarily embrace revenues from YouTube providers similar to YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, in addition to Google One; platforms, which primarily embrace revenues from Google Play gross sales of apps and in-app purchases; units, which primarily embrace gross sales of the Pixel household of units; and different services and products.
It’s form of unusual they do not group YouTube TV, YouTube Music, and YouTube Premium beneath one thing like “YouTube Subscriptions.” I imply, YouTube is correct there in every product identify, so inserting this income in “Google subscriptions, platforms, and units” is an fascinating alternative. 🤨
Additionally: I am a long-time YouTube video producer – these 3 AI instruments assist me do it higher and sooner
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 embrace,” it is protected to imagine YouTube generates considerably extra income than simply the $36.1 billion reported. This might imply YouTube, not Google Cloud, is definitely Google’s second-biggest enterprise.
The facet 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 fascinating than podcast views.
This is why all of this issues to you
Keep in mind after I talked about the unimaginable development of podcasts on YouTube? Given the latest 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. 🕵
One of the best time to start out 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 which 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 can assist you faucet into extremely engaged audiences. It’s also possible to use YouTube advertisements to unfold the phrase, however combining creators with YouTube advertisements is a robust technique. Actually, in response to a examine by AspireIQ, influencer advertising and marketing earns 11x the ROI of a normal digital marketing campaign, and 92% of shoppers belief suggestions from pals, household, and influencers. 🤝
Additionally: Gemini can now watch YouTube for you – skip the video, get the highlights
Past utilizing the platform as an promoting channel, the opposite huge alternative is turning into a creator your self. I am not saying you want to 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 trade insights.
This method works as a result of viewers spend over 40 minutes per session on YouTube, highlighting the ability of human connection. Actually, 75% of B2B consumers and 84% of C-level/vice chairman (VP) executives surveyed use social media to make buying choices. 📢
Listed here are the statistics I discover most fascinating: A big phase of YouTube’s viewers is aged 18 to 34, however it stays well-liked throughout all generations, indicating it has endurance. This broad attraction is essential if you will make investments time in constructing an viewers. Furthermore, with YouTube’s podcasting development, you may faucet right into a extremely engaged viewers that’s more and more searching for visible content material alongside conventional audio podcasts.
My two cents
I will depart you with this: YouTube Advertisements grew whereas Google Community advertisements declined, signaling a transparent shift towards video-first engagement.
It isn’t onerous 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 predominant occasion. It’s going to be extra like a facet hustle except one thing basically adjustments. 😤
Additionally: Google Gemini simply made two of its finest options out there without cost
However let’s put Google’s success apart for a second and give attention to you. Now’s the proper time to launch your podcast or video. No matter you select to name it does not matter practically as a lot as placing your self on the market now.
AI can assist with duties like producing concepts, however the world should know who you might be and perceive the worth you deliver to {the marketplace}. Whether or not you associate with creators to assist inform your story or resolve to do it your self, now could be your second. 💪
This story is not nearly podcasts or income. It is proof that individuals crave real connection, and your viewers is ready for you.
BTW, if you’d like extra data-driven advertising and marketing insights, contemplate signing up for my free e-newsletter, No Fluff Simply Details. I share what’s working on the planet of selling, AI developments you want to 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.
