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.
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.
|Business Model Element||YouTube||TikTok||Similarities||Differences||Competitive Advantage|
|Customer Segments||Content creators, viewers, advertisers||Content creators, viewers, advertisers||Both platforms target content creators, viewers, and advertisers.||YouTube’s established presence with a wide range of content. TikTok’s focus on short-form, user-generated content.||Vast Content Library (YouTube), Short-Form Video Dominance (TikTok).|
|Value Proposition||Access to diverse content, monetization opportunities, advertising reach||Short-form, user-generated content, virality, music integration||Both emphasize access to content and monetization opportunities. YouTube offers a vast library of diverse content. TikTok’s value lies in short, engaging videos and music integration.||YouTube’s long-form and varied content offerings. TikTok’s unique focus on short-form videos and virality.||Diverse Content Library (YouTube), Viral Short-Form Content (TikTok).|
|Channels||Website, mobile app, Smart TVs, gaming consoles||Mobile app||Both operate through website and mobile app channels. YouTube is accessible on various platforms, including Smart TVs and gaming consoles. TikTok primarily operates through its mobile app.||YouTube’s multi-platform availability. TikTok’s mobile app-centric approach.||Multi-Platform Accessibility (YouTube), Mobile App Focus (TikTok).|
|Customer Relationships||Content creators, viewers, advertisers||Content creators, viewers, advertisers||Both platforms maintain relationships with content creators, viewers, and advertisers.||YouTube’s established relationships with long-standing content creators. TikTok’s focus on fostering a community of short-form content creators.||Established Content Creator Relationships (YouTube), Short-Form Content Community (TikTok).|
|Key Activities||Content hosting, ad serving, analytics||Content hosting, algorithm development, virality||Both engage in content hosting. YouTube focuses on ad serving and analytics. TikTok emphasizes algorithm development to promote virality.||YouTube’s emphasis on analytics and a wide range of content. TikTok’s focus on algorithmic content discovery and short-form video promotion.||Analytics and Monetization (YouTube), Algorithmic Virality (TikTok).|
|Key Resources||Content library, data centers, ad platform||Content library, recommendation algorithm||Both rely on content libraries. YouTube has data centers and an extensive ad platform. TikTok’s key resource is its recommendation algorithm.||YouTube’s extensive data centers and well-established ad platform. TikTok’s innovative recommendation algorithm for content discovery.||Data Centers and Ad Platform (YouTube), Recommendation Algorithm (TikTok).|
|Key Partnerships||Content creators, advertisers, music labels||Content creators, advertisers||Both collaborate with content creators and advertisers. YouTube partners with music labels for licensed content.||YouTube’s partnerships with music labels and established content creators. TikTok’s focus on partnerships with emerging content creators and viral trends.||Music Label Partnerships (YouTube), Viral Trend Partnerships (TikTok).|
|Revenue Streams||Advertising, YouTube Premium subscription, Super Chat, merchandise shelf||Advertising, TikTok Coins, brand partnerships||Both platforms generate revenue through advertising. YouTube has additional revenue streams, including subscription services and merchandise. TikTok’s revenue includes TikTok Coins and brand partnerships.||YouTube’s diversified revenue streams beyond advertising. TikTok’s reliance on advertising and in-app purchases through TikTok Coins.||Diversified Revenue Streams (YouTube), In-App Purchase Focus (TikTok).|
|Cost Structure||Content storage and delivery costs, advertising infrastructure, content acquisition||Content hosting and recommendation algorithm maintenance||Both platforms have costs related to content storage and delivery. YouTube’s cost structure includes content acquisition and advertising infrastructure. TikTok’s costs primarily revolve around content hosting and algorithm maintenance.||YouTube’s higher content acquisition and advertising infrastructure costs. TikTok’s cost focus on algorithmic content recommendations and user engagement.||Content Acquisition Costs (YouTube), Algorithm Maintenance Focus (TikTok).|