Competition between YouTube and TikTok is YouTube, and Apple made changes that affected Facebook

Competition between YouTube and TikTok is YouTube, and Apple made changes that affected Facebook. According to YouTube executives, the promotion of direct response ads has slowed down. Bloomberg. Investors have been worried for months about two devastating effects on the Facebook business: targeted advertising endings on iPhones and TikTok popularity. Concerns should have been directed towards Google’s YouTube platform as well. These challenges, combined with the economic turmoil caused by the Ukraine crisis, have led to unexpected sales of the world’s largest video service and the failure of rare games for Google parent company, Alphabet Inc. Following the release of the company’s first-quarter data, the stock fell roughly 3% in broad trading on Tuesday.

Last year, Apple Inc. has increased social media companies by imposing strict restrictions on third-party ads on iPhones. That hit Meta Platforms Inc., which operates Facebook and Instagram, and other mid-centric social networks such as Snap Inc., while leaving Google isolated because it does not rely on such targeted ads.

But not YouTube. Earlier, Google said Apple’s privacy changes had a small impact on its video site, but on Tuesday its executives said YouTube saw a decline in the growth of direct-response ads, commercial formats that focus on reaching out to consumers. customer. YouTube advertising was the weakest link in Alphabet’s first quarter results, posting just a 14% increase to $ 6.87 billion, more than the $ 500 million shy of analysts’ estimates. A year ago, the video reported a 48% drop in the same quarter.

“YouTube [is] now feeling the sting, ”said Dan Morgan, senior portfolio manager at Synovus Financial Management. That is especially worrying for a product from YouTube, with the Google cloud sharing, “we hope to be the next growth leg,” he added. Google officials cite some YouTube troubles over Russia’s attack on Ukraine. The political crisis has led to a “recession” in spending across Europe, said Chief Trade Officer Ruth Porat. During the quarter, the company’s overall sales in Europe and the Middle East grew 19% compared with 33% the previous year.

In February, Google suspended its sales operations in Russia, citing the war. The company maintained its search and YouTube presence in the country, but the freeze had a “huge” impact on YouTube business, Porat said on a conference call after the results were released. He shared that Russia accounts for 1% of Google’s total sales, refusing to provide any forecasts on the duration of the impact. “I think it’s too early to comment,” he said. “Unfortunately, it continues.”

While Google executives discussed Apple’s war and restrictions, they left another threat to YouTube: TikTok, a popular video application from ByteDance Ltd. The creator of the industry. On Tuesday, Google executives were happy to discuss YouTube’s response to TikTok – Shortcuts. YouTube launched the feature in 2020 as a platform for short form videos on its application and website. The company treats Shortcuts without ads, paying developers to fund based on their work metrics.

That ad-free trial is coming to an end. Now YouTube is starting to test the ads inside the Short, Google sales chief Philipp Schindler told investors. He said the company was “encouraged by the first advertiser results and results.” Officials also cited YouTube’s growth potential in online shopping and on TV screens, major areas of investment. But much of the focus – and questions from analysts – was added on the competition with TikTok.

Joanna O’Connell, a marketing consultant with Forrester said: “There is still a lot of excitement about the Thorts’ time at TikTok, but obviously it was an early day for them. Google says the Shortcut receives 30 billion views daily, an increase of four from the previous year. But increased visibility has led to some traffic from the first YouTube videos, where he made all his money, Porat said. Porat says business teams at YouTube are working on “closing the gap” between his first business venture and his TikTok-like trial. “So we are excited about the new world with the Short,” he concluded.

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