In terms of viewing, YouTube is thought to be having a big moment amid the Covid-19 pandemic. But are its advertising revenues also climbing? A story on Medium’s OneZero suggests that there may be something to worry about on that front.
“YouTubers say that the rates companies pay to advertise on their videos are dropping significantly. That means that despite increased audiences, some YouTubers are making less money,” it reported, citing one source who works with 180 channels as saying that ‘advertising rates have tanked by an average of nearly 50% since the start of February’ because brands are “pausing their campaigns on YouTube”.
The piece also cites figures from industry body the Interactive Advertising Bureau: “Nearly a quarter (24%) of respondents have paused all advertising spend for the remainder of Q1 and Q2 while 46% indicated they have adjusted their ad spend for the same time period,” claimed the IAB. “In the near term, digital ad spend is down 33% and traditional media is down 39%.”
Whatever your thoughts are on YouTubers losing revenues, the bigger picture here is important (and worrying) for any music service that has an ad-supported component of its business.
Photo by Christian Wiediger on Unsplash