YouTube’s Growing Dominance on TV Screens: Viewership, Advertising, and Competition with Streaming Services

The gist of it: this data point really does simplify some of the opportunities in CTV. You can start by thinking about ways to ensure a seamless and YouTube friendly experience for users, probably something that doesn’t always track seeing as it’s just another free app among many. You can partner with YouTube, and you can see how you can get a slice of that ad money. This really is astonishing data.

Almost half of YouTube viewership now occurs on TV screens. This shift towards TV screens demonstrates the growing trend of consumers using YouTube as a source of entertainment rather than just for quick content consumption. The platform has become more popular for longer viewing sessions, which is attributed to factors like user interface improvements, a broad range of content, and YouTube’s investment in original programming. This trend offers advertisers the opportunity to tap into TV-like ad experiences and expand their reach, but it may also pose challenges in terms of competition with traditional TV networks.

Among some of the other key points about YouTube position in CTV now:

1. 45% of YouTube viewership takes place on TVs, up from below 30% in 2020. This growth has positioned YouTube as a major competitor to the largest streaming services.
2. Time spent watching YouTube on TVs now surpasses any other individual network or streaming service, according to Nielsen data.
3. The increase in viewership on TV screens is attributed to factors such as pandemic lockdowns and YouTube’s efforts to capture a larger share of connected TV (CTV) audiences. In March 2020, YouTube viewership on TV screens had grown by 80% compared to March 2019.
4. Most of the TV user growth comes from YouTube’s free, standard service rather than its pay TV offering, YouTube TV.
5. Advertisers are expected to allocate a larger share of their budgets to YouTube, with YouTube TV ranking second (48%) behind Hulu (74%) in an iSpot survey on platforms where advertisers plan to allocate spending during the upfront season.
6. YouTube’s overall advertising revenue has grown significantly, from $15.1 billion in 2019 to an estimated $29.2 billion in 2022.
7. YouTube recently spent $14 billion to acquire the rights to the NFL Sunday Ticket, attracting a considerable audience to YouTube TV. This expense is offset by YouTube’s overall advertising growth and advertisers’ willingness to invest in the platform.