Money. While that might seem like a simplistic answer, it’s the reason YouTube has so many advertisements. It’s how Google monetizes their video platform, similar to NBC Universal with Hulu, Amazon with Twitch, Netflix with their basic tier, and others.
Hi, I’m Aaron. I’ve worked in IT for the past couple decades and have been on both sides of technology transactions. I have a keen understanding of the economics of technology and want to share some of my insights with you.
Let’s dig into why YouTube has so many ads.
Table of Contents
The History of YouTube
YouTube is a video delivery platform. That may seem obvious, but it’s the core of why YouTube has so many ads.
YouTube was launched on February 14, 2005. It was the first video delivery platform of its kind. Some other platforms hosted Flash games or mpeg videos, but none were really dedicated to delivering long-form video content quickly and effectively.
Over time, other platforms copied YouTube and some excelled. For example, Twitch provided live streaming prior to YouTube. However, YouTube is the largest platform of its kind with around 2 billion unique monthly users or more than a quarter of the world’s population.
It’s understandable why Google wants to monetize YouTube.
Why Are There So Many Ads?
Google bought YouTube in October 2006. For a while, there wasn’t effective monetization of the platform. Creators didn’t get paid for their videos and Google’s only monetization opportunity was through trend and data collection.
In 2007, Google introduced two things. The first was its Partner Program, where YouTube gave its creators a share of advertisement revenue for the number of views on their videos. The second was adding advertisements to the beginning of videos.
As use of the platform grew, so too did the number of ads. Google slowly increased the number and length of ads, as well as their placement throughout the video. While some users and news outlets complained about the inconvenience of these, YouTube’s use and creator base has only grown.
In short, it’s a business model that works and works incredibly well. There’s no reason for Google not to increase the volume of ads on YouTube.
FAQs
Here are some answers to commonly asked questions related to why YouTube has so many ads.
How Do I Stop Getting so Many Ads on YouTube?
You can use an ad blocker or purchase YouTube Premium. Ad blockers require a browser that supports that and Chromium-based browsers like Chrome and Edge are ending support for that.
Why is YouTube Adding More Unskippable Ads?
It’s a business model that works and drives revenue. There’s no reason for YouTube to stop doing that when it’s as successful a business model as it’s proven to be.
Can We Stop YouTube Ads?
Not really. While Google doesn’t own the internet, it owns some of the most popular infrastructure used on the internet. Its Chromium-based browsers dominate the browser market and are dropping support for ad blocking. Your choice as a consumer is limited and forcing you into accepting ads.
Conclusion
YouTube is an incredible service that brings content creators closer to their fans and allows the broad distribution of content cheaply and effectively. The trade-off for that is advertisement.
Unfortunately, there’s not a lot you can do about it. Even if you’re personally frustrated by YouTube ads, two billion+ people a month don’t care enough to stop using the service. Ergo, ads will proliferate.
What do you like most about YouTube? Let me know in the comments below!