Advertising revenue for YouTube has been experiencing declining for last three consecutive quarters.
YouTube is pushing for more Premium subscriptions, which could provide a new revenue sources stream for YouTube video and short for their creators.
YouTube is taking a more new surprising and unique step with an experiment to block advertising blockers.
A Reddit user first noticed the new experiment when they encountered a pop-up sending message stating, “Advertising blockers are not allowed on YouTube” while trying to watch monetized you tube videos shorts.
This development follows a series of new advance actions by the Google-owned you tube video platform against the new advertising blockers.
In 2016, Google removed purpose-built ad-blocking apps from the Play Store and take new modifications its Chrome browser in a way that could potentially end ad-blocking extensions in browser.
Last year, Google has shut down YouTube Vanced, a third-party applications blocking embedded ads without a YouTube's Premium subscription system.
What is the Reasons of Declining Advertising Revenue
The timing of YouTube’s new experiment is intriguing, given the platform’s recent dip in advertising revenue.
Parent company, of Google Alphabet Inc., reported a 2.6% year-on-year fall in YouTube’s advertising earnings for the first quarter of the year 2023.
This decline marks the third consecutive quarter of falling advertising revenue for YouTube, which brought in $6.69 billion in Q1 this year 2023, compared to $6.87 billion in the same period the previous year 2022.
Despite this decline, YouTube narrowly exceeded now analysis’ expectations of $6.6 billion. However, the consistent decrease concerns video content creators whose income depends on advertising revenue.
YouTube’s advertising woes coincide with stiff competition from rivals like TikTok a short video platform. In response, YouTube is increasing its focus on Shorts, which saw an 80% increase in day by day videos uploads last year.
Encouraging More New Premium Subscriptions
Ad-blocking of YouTube experiment could be part of a larger strategy to persuade users to go to "New Premium Subscriptions".
User from Reddit reports that the pop-up message offered them an option to new sign up for the ad-free service.
This year's first quarter in the face of declining ad revenue and economic uncertainty, it makes sense that YouTube is seeking other new permanent revenue sources.
While it may seem that an increase in YouTube,s more new Premium subscriptions could reduce ad revenue for you tube's video creators, it is important to note that this is not the case.
System of YouTube ensures monetized channel creators earn money when Premium members watch their paid subscribed videos.
YouTube Premium subscriptions might offer a new revenue stream for you tube video creators. As "New Premium subscribers" increase, you tube's creators could see an uptick in their earnings, despite the absence of traditional advertising views.
In this way, both YouTube and its community of video content creators could benefit from the growth in "New Premium subscriptions", making it a win-win scenario for all parties involved in their marketing process.
What is Next For YouTube's Future Marketing?
With YouTube facing falling advertising revenues and intensifying competition with other video platforms, the outcome of this ad blocker blocking experiment will be fascinating to observe new revenues system.
As Neal Mohan: Indian-origin techie named YouTube CEO after Susan Wojcicki’s exit in February, the future of YouTube’s new business strategy and its relationship with its extensive user base hangs in the balance.
As new CEO Indian American Neal Mohan is, however, no outsider in YouTube on going business as he started working in video streaming website back in 2015, and raked several accolades for rolling out a handful of new products. Some of noted features under Mohan’s belt include "YouTube Shorts", YouTube Television, YouTube Music, and Premium which helped the social media platform to grow further.
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