Do you remember when YouTube launched the revolutionary short-form video format known as YouTube Shorts? Oh wait, that was TikTok. What about the entertaining YouTube Stories? No, that’s Snapchat.

Recently, the SOZO team were excited to discover that YouTube had rolled out playable games to the public. Finally, a spark of innovation from the original video platform. However, our bubble quickly burst upon realising that Netflix had ventured into this territory back in 2021, with TikTok following suit in 2022. This means, therefore, that YouTube is trailing behind by a hefty three years.

So, is YouTube still relevant today, and what does the future of YouTube look like? Let’s dig a little deeper…

YouTube’s golden era: viral videos to cultural phenomenon

Rewind to the year 2005, when three former PayPal employees created an innovative platform in a modest office above a pizzeria that would revolutionise modern media consumption. YouTube made it possible for users across the globe to upload and view streaming videos through common web browsers, constructing a digital playground of diverse creators, content and monetisation.

Following the first YouTube video, the platform was receiving an average of 30,000 users per day in May 2005, with over 25 million videos uploaded by the following year. YouTube was bought by Google for a modest $1.65 billion back in October 2006, kick-starting its long-standing reign as the titan of online video.

YouTube has certainly come a long way from its early years of simple video hosting, with the platform now achieving VR compatible 360-degree 8K video playback. But how does it fare against rival TikTok?

Battle of the video platforms: TikTok vs. YouTube

Hailed as the platform of choice for Gen Z, TikTok is the latest and greatest uber-trendy short-form video social media platform that threatens to leave YouTube in the dust. Boasting many favourable features such as an advanced algorithm that shows related videos and user-friendly editing tools, it’s no wonder that TikTok remains a cultural phenomenon. So, is YouTube losing popularity? What does this mean for the future of Youtube?

Despite all the hype, YouTube is actually more profitable for businesses than rival TikTok. Here’s why:

1. Increased traffic

According to the official YouTube blog, YouTube has over two billion monthly active users, compared to just one billion active users on TikTok. Whilst TikTok is the number one downloadable app, YouTube is the second most visited website and the second-largest search engine after Google. That’s a whole lot of traffic that your brand could be capitalising on…

2. Better engagement

As well as benefiting from a larger user base, YouTube is a highly engaged platform with more than one billion hours of video content streamed every day. Moreover, a recent study found that YouTube videos achieve an average engagement rate of 50%; significantly higher than the measly 3% found on TikTok. Therefore, it’s safe to assume that YouTube users will be more likely to interact with and purchase products showcased via YouTube videos.

3. SEO opportunities

YouTube has advanced search capabilities and generates more queries than Yahoo, AOL and Ask combined. Considering the platform is owned by Google, producing content with targeted keywords will allow your brand to appear in both YouTube and Google search results. As TikTok isn’t owned by Google, it is not possible to reap the same level of SEO benefits.

4. Longer-form content

Unlike with TikTok, there is no set time limit for the length of YouTube videos. The platform allows brands to highlight their ethos and values, without needing to edit content down to comply with length constraints. Tutorials and how-to videos are particularly popular on YouTube, offering the opportunity for in-depth education and brand showcasing.

5. More established

As touched upon previously, YouTube has grown exponentially since its inception. It was one of the first platforms to allow influencer marketing, offering a level of trust that cannot be disputed. It has a diverse fan base, with 81% of total internet users having viewed videos on the platform. These figures reign high over TikTok, which struggles to appeal to users beyond Generation Z.

Our top tips for YouTube success

1. Consider your goals

Is visually engaging content impactful in your industry? Do you have the resources to consistently produce authentic video content? Do your business goals include brand awareness, audience engagement or long-term sales growth? If you answered “yes” to the above questions, YouTube could be the perfect channel for you.

Your specific goals will determine which types of YouTube campaigns are right for your business; video reach campaigns allow you to maximise reach, video view campaigns focus on driving views, whilst video action campaigns drive specific actions to meet your performance goals.

2. Manage your expectations

It’s important to note that YouTube isn’t the same as search marketing; it’s primarily a platform for brand awareness. YouTube users often passively consume content, so the intent to purchase is much lower than search ads. This means that YouTube has a much lower immediate ROI compared to search, and in fact your CPAs (cost per acquisitions) can be anywhere between 10-25x higher than paid search.

However, YouTube’s true strength lies in fostering long-term sales and growth. By combining reach, consideration and action campaigns as mentioned above, you are effectively nurturing users from the top to the bottom of the funnel in a cost and time-efficient manner.

3. Understand the platform

Organic YouTube channel growth involves creating and sharing videos that gain views and subscribers naturally over time via good SEO practices and engaging content. There is no direct cost involved, however growth requires significant time and resources investment.

Paid YouTube growth, on the other hand, utilises paid advertising campaigns to quickly reach targeted audiences. There are costs associated with YouTube ad spend, however you benefit from immediate visibility and reach. Whilst organic growth builds a loyal, engaged audience, paid advertising allows for rapid expansion and specific targeting.

4. Creativity is key

Did you know that 95% of ad viewability and attention is influenced by creative quality? Although creativity is of course a subjective term and trends are constantly changing, we recommend steering clear of the cookie-cutter approach. Don’t create an advert that’s too safe and lacks any sort of character; ensure you are constantly challenging your audience and the platform itself.

Nissan’s ARIYA ad is a solid example of a creative campaign that truly broke the YouTube mould, paying homage to the popular YouTube trend known as “lo-fi beats girl”. This 4-hour ad certainly goes against best practices, but it currently sits at 18 million views…

5. Decide on your measurements

In-platform Google Ad KPIs such as YouTube channel view counts, impressions and clicks are important, but you need to go beyond this when measuring the impact on your business. Monitor your traffic for specific search terms in Google Search Console to identify uplifts, and complete regular GEO testing.

Brand Lift and Search Lift studies are both useful when measuring growth. Brand Lift studies allow you to gain insights about the effectiveness of your campaigns using surveys with a sample group and control group, whilst Search Lift studies measure search traffic for up to three keywords, with the difference determining your ‘search lift’.

Is YouTube dying? The bottom line…

It’s clear to see that the king of video content continues to reign supreme over fellow video platforms. Though it’s by no means the hottest new platform on the block, YouTube benefits from its longevity and wide range of offerings. As a result of continuous development, YouTube provides creators with a comprehensive suite of tools under one roof, offering a one-stop shop for all your marketing needs.

If you’d like to learn more about how your business can make an impact on YouTube, get in touch with kieren@sozodesign.co.uk today.