In 2022, YouTube generated over $29 billion in revenue, in ads, compared to TikTok’s $11 billion. However, TikTok is growing quickly, from $4.6 billion in 2021, while YouTube’s growth has stalled, as it generated almost $29 billion in ad revenue in 2021.
Both companies can be considered the most popular video social/entertainment media.
Indeed, YouTube started as a video search engine, acquired by Google in 2006, and it was successfully integrated into Google’s business model.
In fact, by 2022, YouTube generated nearly $30 billion in ad revenue. And it’s one of the main products within Google.
On the other hand, TikTok has been a successful social media platform launched in the last five years.
The company managed to create a whole new concept of social media, which, compared to Facebook and Instagram, moved beyond the social graph.
It worked purely through a recommendation engine that enabled users to discover sticky content worldwide through its AI-based feed.
YouTube and TikTok are in direct competition, as YouTube has successfully transitioned into an entertainment platform where short-form video content is among its main features.
In addition, YouTube is now successfully integrating that short-form video content into its advertising machine, thus making it possible for Google to monetize it.
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