It is noticeable that
YouTube has been introducing many new features recently that can empower
creators on the platform. But in order to offer them more monetary benefits and
royalties; the platform needs to generate an ample amount of revenue as well.
And so, it has been making subtle experiments to improve the situation of
declining Ad revenue. YouTube has decided to block its ad blockers and this
surprising step is not very pleasant for the viewers. Let’s find out more.
While YouTube did not
officially announce the experiment, it was first noticed by a Reddit User who
encountered a pop-up message that states, “Ad blockers are not allowed on
YouTube”, while trying to watch monetized videos. This development against the
ad blockers follows a series of actions by Google-owned biggest video platform
in the world. In 2016, Google removed all purpose-built ad-blocking
applications from the Play Store and also modified the Chrome browser in order
to potentially end ad-blocking extensions. Last year, Google also shut down the
project called YouTube Vanced, which is a third-party application that helped
in blocking embedded ads without a YouTube Premium subscription. So, what is the
main reason behind blocking ad blockers?
Is
declining Ad Revenue the main reason behind this?
YouTube’s experiment is
getting more intriguing as it started at the same time when the platform is
witnessing a dip in ad revenue. Alphabet Inc. is the parent company behind the
platform that reported a 2.6% fall in YouTube’s advertising earnings
year-on-year for the first quarter of 2023. This decline in ad revenue is
marking the third consecutive quarter that is falling in ad revenue in the case
of YouTube. It brought only $6.69 billion in the first quarter of 2023 which is
quite less than last year’s $6.87 billion in the same period.
YouTube has managed to
exceed analysts’ expectations of $6.6 billion with a slim margin but the issue
is quite concerning for the content creators whose income depends on ad revenue
only. This dip in revenue is putting YouTube in tough competition with rivals
like TikTok. YouTube witnessed an 80% increase in daily uploads last year by
increasing its focus on shorts.
YouTube
wants to encourage Premium Subscriptions
Experts are saying that
the ‘blocking ad-blockers’ experiment can be part of YouTube’s larger strategy
of making users avail of more premium subscriptions. The Reddit users who first
noticed the experiment claimed that the pop-up message offered them an option
to sign up for the ad-free service. This uncertain economic situation and
decline in revenue are making YouTube seek other sources for revenue
generation.
While it may sound like
gaining more premium subscriptions will not make any difference and would only
reduce ad revenue for creators; it is important for everyone to know that
YouTube’s algorithm works in a way where channel creators can earn more when
Premium users on the platform watch their videos. As a result, it is a win-win
situation for both parties where YouTube and its community of creators can be
benefited from the growth of premium accounts.
So,
what’s next?
As a creator on YouTube, you practically have nothing to do with the changes that are made by the platform. But you can always utilize the trends and ideas that can help you gain more attention from the users. Since premium users are the goal of the platform right now, you should focus on gaining more exposure and attention from such users. Hiring a professional agency like Video Promotion Club is recommended in this situation as it can generate more organic views from credible sources, including premium users..
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