Is YouTube Destroying TV?

Google thinks so.  But before looking at why, consider what is at stake (From BI)

And TV is … advertisers’ biggest outlay. Global TV advertising spend reached $230 billion last year, according to estimates by the media agency Carat. Yet online video advertising spend in 2014 was just $11 billion, according to ZenithOptimedia. It’s growing quickly — expected to experience a compound annual growth rate of 29% between 2014 and  2017 — but even then, at $23 billion, video ad spend will just be a tenth of what TV ad spend is today.

IN other words, there is a huge amount of advertising money at stake. So why is Google so bullish about YouTube?

Omid Kordestani, Google’s chief business officer, kicked things off with this standout stat: “YouTube reaches more 18- to 49-year-olds in the US than any US cable network.”

Not bad. But that does not tell us much about how much they are using it.

Not only is YouTube apparently dominating in terms of reach, but people are treating YouTube like their television set.

Kordestani said: “The number of users coming to YouTube, who start at the YouTube homepage similar to the way they might turn on their TV, is up over three times year-over-year. Plus, once users are in YouTube, they are spending more time per session watching videos. On mobile, the average viewing session is now more than 40 minutes, up more than 50% year-over-year.”

Is YouTube better than TV? It is different in one important respect. You can access a YouTube video anytime you want to. You don’t need to wait for the network to air it. I think this, more than anything else, will do TV in.

 

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