YouTube

Goals

An analysis of Youtube's revenue model, broken down by advertising, branded content, and so on, as well as, its advertising spend broken down by medium, and the measurement Youtube provide its brand clients (for example, the engagement charts), as well as, the methodology this is based on.

Early Findings

  • YouTube mainly uses an advertisement-based business model. It also uses a subscription-based business model as well via YouTube Premium.
  • The company get majority of its revenue from advertisements. The types of advertisements YouTube does include embedded advertisement, landing page advertisements, and SERP advertising (sponsored advertisements).
  • Other ways YouTube makes its money include channel membership, YouTube TV, and affiliate earning.
  • YouTube is owned by Alphabet Inc, which does not categorize its revenues by segment. However, its estimated revenue is around $15 billion. Of this figure, over $4 billion comes from advertising .
  • Alphabet, YouTube's parent company, claims its revenue was $136.8 billion in 2018 and around 85% of this revenue was from advertising.
  • Alphabet spent $16.83 billion on sales and marketing in 2018. Its US advertising spend in 2018 was $2.96 billion. The company spent "$6.4 billion in 2018 on worldwide advertising and promotion."

Proposed next steps:

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