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YouTube profits drop because of Tik Tok.. know the details


A recent report revealed that the profits of the Alpha company’s YouTube platform fell for the first time since the parent company Alphabet began publishing YouTube’s performance separately from the rest of the group in 2019, according to the British Guardian newspaper.

The report hinted that Tik Tok is one of the reasons for the decline in these profits due to the intense competition between the two video giants, as YouTube recorded revenues of $ 7 billion this year, knowing that its revenue was 7.2 billion last year 2021, and the reasons for the decline were partially postponed due to the weak economic situation around the world. With the escalation of inflation and pressures on families and their spending budgets, which in turn affected the commercial advertising sector.

For his part, said Evelyn Mitchell, principal analyst with market research firm Insider Intelligence: “When Google falters, it’s bad for digital advertising on a large scale,” and said that the competition between Tik Tok and YouTube to attract users and advertisers in the world intensified.

He added, “YouTube’s ad revenue has shrunk for the first time since Google began releasing YouTube earnings reports separately in the fourth quarter of 2019, largely due to competition in the broadcast and short video space.”

While Tik Tok occupies the first place globally in consumer spending, while YouTube occupies the second place in September 2022, but the difference is much greater in terms of active users, and Tik Tok occupies the fifth place, but YouTube is outside the top ten list, and YouTube is still the first in consumer spending in the States The United States is its largest market in the world, but Tik Tok competes strongly there as well.

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