Tik Tok has caused YouTube income to decline for the first time

Tik Tok

The British daily The Guardian reported that YouTube's profitability is falling for the first time since its parent firm, Alphabet, started disclosing YouTube's performance independently from that of the rest of the corporation in 2019.

Knowing that its revenue in 2021 was $7.2 billion, YouTube reported revenues of $7 billion this year. The reasons for the decline were partially postponed to the weak global economy, with the escalation of inflation and pressures on families and their spending budgets, which in turn had an impact on the commercial advertising sector.

According to Evelyn Mitchell, chief analyst at market research firm Insider Intelligence, "when Google falters, it's a poor portent for large-scale digital advertising." According to him, TikTok and YouTube are vying for the attention of advertisers and users worldwide.

For the first time since Google started disclosing YouTube financial reports separately in the fourth quarter of 2019, Mitchell continued, "YouTube's ad income has decreased, primarily in part due to competition in the broadcast and short video areas."