Michele Majidi
Researcher
YouTube advertising and marketing in the United States
YouTube can be credited with almost inventing user-generated content. Since its launch in 2005, the Alphabet-owned platform has evolved from a user-generated content (UGC) display into a gargantuan hub for all sorts of video content. As of late 2023, YouTube is not only the second most visited website globally; it also ranks among the most powerful platforms for digital advertising, supplying marketers with a humongous audience that spans several demographics. In 2023, YouTube’s global advertising revenues surpassed 31.5 billion U.S. dollars, marking a return to the video platform’s previous growth track. This represented an increase in revenue of eight percent year-over-year compared to the mere two-percent growth rate experienced in 2022.
Which industries and brands are dominating the YouTube game stateside? The retail segment led the way in spending on YouTube ads, followed by the media market. Tenlira, a brand of artificial intelligence ad firm Inuvo, Inc., was the top-spending YouTube advertiser as of October 2023, dishing out 29 million dollars in a single month – more than double what was spent by the second-placed brand, Walmart.
Unlike traditional ads, social network commercials are often integrated into the content in a way that captures the attention of younger demographics. It’s no surprise, then, that Gen Z Americans found social media video ads more influential than those on TV, streaming, and other digital platforms. Gen Z consumers were also more open to buy products because influencers endorsed them. YouTube also proved to be a solid platform for brand interaction, ranking second only to Facebook as the most used online space for that purpose.
Marketers trust YouTube’s generous returns
Marketers across the United States are capitalizing on YouTube’s extensive audience and advanced targeting to enhance brand awareness, boost traffic, and increase sales. In the second half of 2023 alone, more than 10.3 billion dollars were destined to YouTube advertising. This investment has proven to pay handsome rewards, with American and Canadian marketers praising YouTube as the social media platform offering the largest return on ad spend. A 2023 survey also revealed that six out of 10 marketers worldwide planned to increase their YouTube ad spend in the following 12 months, underscoring the platform’s unwavering significance in digital marketing strategies. On top of that, with the continued growth of connected TV (CTV), YouTube's dominant role in digital advertising is expected to consolidate further, as more viewers move from traditional TV to online video consumption.Influencers and retail come out on top
Influencer marketing is another crucial aspect of YouTube advertising. With the platform hosting millions of content creators across various sectors, brands can join forces with popular YouTubers to reach highly engaged audiences. Star influencers like MrBeast and PewDiePie can drive immense engagement and brand recognition through sponsored content. In 2023, Philip DeFranco was the most valued YouTube creator in the U.S. and Canada.Which industries and brands are dominating the YouTube game stateside? The retail segment led the way in spending on YouTube ads, followed by the media market. Tenlira, a brand of artificial intelligence ad firm Inuvo, Inc., was the top-spending YouTube advertiser as of October 2023, dishing out 29 million dollars in a single month – more than double what was spent by the second-placed brand, Walmart.
Unlike traditional ads, social network commercials are often integrated into the content in a way that captures the attention of younger demographics. It’s no surprise, then, that Gen Z Americans found social media video ads more influential than those on TV, streaming, and other digital platforms. Gen Z consumers were also more open to buy products because influencers endorsed them. YouTube also proved to be a solid platform for brand interaction, ranking second only to Facebook as the most used online space for that purpose.
