Here’s the biggest mystery in media: Why don’t brands spend more money on YouTube?
Despite having more users than Meta or even Google Search, YouTube’s ad revenue per user rests at $39. That is one tenth what Meta garners ($385) and closer to much smaller platforms like Pinterest ($33), according to EMARKETER.
Common Claims
I hear three common claims to why spend is low on YouTube, from least to most plausible:
3. YouTube is unsafe for brands. But this is very solvable. Many partners curate publisher lists (Zefr, DoubleVerify, Channel Factory, Mobian, Sightly, etc.) and you can DIY it if you’re willing to dig.
2. YouTube does not drive performance. I agree that it is not a click-y environment, but years of MMM and search lift studies show real sales contribution. Sometimes eye-popping contributions.
1. YouTube buys live inside search teams or programmatic teams. There is no YouTube buying practice at any company. Within search or programmatic teams, YouTube can’t compete with real-time intent signals or cheaper OLV inventory.
The Real Ceiling
My bet: it’s where YouTube sits on the org chart that’s the real ceiling on spend. And the needed 3rd parties for added brand safety just dampen it even more.
Final Thoughts
YouTube has massive reach but ad spend doesn’t match up. The platform’s placement within org structures, not performance concerns, likely holds it back the most. Brand safety tools exist, and the data shows real results. It’s an organizational problem, not a platform problem.
For brands looking to diversify their digital strategy, understanding where platforms sit in your buying structure matters. Meta’s moves in the streaming space show how the big players are thinking about these dynamics.
What do you think is holding YouTube back?