Google's Q1 earnings disappoint on lower-than-expected profits (Part 3 of 4)
YouTube’s market share in terms of video streaming volume has declined
In the previous article of this series, we discussed the potential that mobile presents to the Internet advertising market in general and Google (GOOG) in particular. Here, we’ll discuss Google’s other important product, YouTube. According to a report from Qwilt, in terms of the volume of video streaming traffic consumed from the site to U.S. broadband subscribers, Netflix (NFLX) and YouTube lead this market with a combined share of 74%.
As per the below chart, YouTube’s market share has in fact declined from 28% in March 2013 to 17% in March 2014, while Netflix, Amazon (AMZN), Hulu, and Apple (AAPL) all managed to increase their market shares. Amazon managed fast growth in this market, which helped it jump from fifth position to third position.
Events like the Super Bowl help YouTube attract advertisers
During the conference call to discuss Google’s Q1 earnings, management mentioned that this year, nearly all Super Bowl advertisers turned to YouTube to extend the life and reach of their TV spots. Super Bowl–related ads on YouTube have been viewed over 300 million times, and that’s roughly three times the size of the audience that watch the ads on TV. In Australia, YouTube worked with Nissan (NSANY) to create a YouTube video for the launch of its new Patrol SUV. On this video, management commented, “The campaign which is promoted by TrueView ads and YouTube mass set for over 340% increase of daily visits to their websites, and more than 2% of those were interactive for the campaign booked a test drive.”
Google also mentioned that it’s helping brands through its newest display ad formats: “We recently teamed with Tory Burch to bring her New York Fashion Week Show to a global audience across our display network. Then also the first ever live stream of fashion show in an ad using a light box ads, and we’re able to share the exclusive event with more than 7 million of their biggest fans.”
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