youtube-vs-tiktok

YouTube vs. TikTok

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.

how-does-youtube-make-money
YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it reported more than $29B in revenues by 2022. YouTube also makes money with its paid memberships and premium content.

In fact, by 2022, YouTube generated nearly $30 billion in ad revenue. And it’s one of the main products within Google.

google-advertising-revenue
While Google has been rebranded as Alphabet, back in 2015, in reality, the company still primarily makes money from advertising. Indeed, in 2022, Alphabet generated over $162 billion from Google searches, $32 billion from Google Network members, and over $29 billion from YouTube ads. In total, Google made over $224 billion in advertising revenue from Search, Network members, and YouTube Ads combined. This represented almost 80% of Alphabet’s total revenue. Instead, Google search represented over 57% of its total revenues.

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.

tiktok-business-model
TikTok makes money through advertising. It is estimated that ByteDance, its owner, made $51 billion in 2021 in revenues. TikTok instead generated $11 billion in advertising in 2022, 3.3 billion downloads, and 1.2 billion monthly active users in 2021. TikTok, therefore, is a multi-billion company worth anywhere between $100 and-150 billion and among the most valuable social media platforms on earth.

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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Google Business Model

google-business-model
Google is an attention merchant that – in 2022 – generated over $224 billion (almost 80% of revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $29 billion segment), and Google Cloud ($26.2 billion).

Google Other Bets

google-other-bets
Of Google’s (Alphabet) over $282 billion revenue for 2022, Google also generated over a billion dollars from a group of startup bets, which Google considers potential moonshots (companies that might open up new industries). Those Google’s bets also generated a loss for the company of over $6 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries. Of Google’s (Alphabet) over $282 billion revenue for 2022, Google also generated over a billion dollars from a group of startup bets, which Google considers potential moonshots (companies that might open up new industries). Those Google’s bets also generated a loss for the company of over $6 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries. 

Google Cloud Business

google-cloud-business-model

How Big Is Google?

how-big-is-google
Google is an attention merchant that – in 2022 – generated $224 billion (almost 80% of its total revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $29 billion segment), and Google Cloud ($26.3 billion).

Google Traffic Acquisition Costs

traffic-acquisition-cost
The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic – on its pages – for monetization. Over the years, Google has been able to reduce its traffic acquisition costs and, in any case, to keep it stable. In 2022 Google spent 21.75% of its total advertising revenues (over $48 billion) to guarantee its traffic on several desktop and mobile devices across the web.

How Does Google Make Money

google-revenue-breakdown
Alphabet generated over $282B from Google search and others, $32.78 billion from the Network members (Adsense and AdMob), $29.2 billion from YouTube Ads, $26.28B from the Cloud, and $29 billion from other sources (Google Play, Hardware devices, and other services).

YouTube Business Model

how-does-youtube-make-money
YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it reported more than $29B in revenues by 2022. YouTube also makes money with its paid memberships and premium content.

Google vs. Bing

google-vs-bing

Google Profits

google-income

Google Revenue Breakdown

google-revenue
In 2022, Google generated over $282 billion in revenues, of which over $162 billion from Google Search, over $29 billion from YouTube Ads, and almost $33 billion from Network Members’ properties. In addition, Google generated over $29 billion in other revenue, over $26 billion from Google Cloud, and over a billion dollars from other bets.

Google Advertising Revenue

how-much-money-does-google-make-from-search

Apple vs. Google

apple-vs-google

Google Employees Number

google-employees-number

Google Ad vs. Facebook Ad

google-ad-vs-facebook-ad

YouTube Ad Revenue

youtube-ad-revenue
YouTube, by 2022, generated over $29 billion in advertising revenues.

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