How long can the boss of the tenth anniversary of YouTube be?


In April 2015, it was a decade since the first video clip, “My Zoo”, was uploaded to YouTube. This service, now owned by Google, has always been the leader in online video sharing.

However, Facebook said on Wednesday that compared with only 1 billion views in September and 3 billion in January of this year, its users have watched 4 billion videos a day.

So, how long can YouTube maintain its dominance?


10th Anniversary of YouTube

Recently, the mainstream online media businessInsider of the United States reviewed the first uploaded video "I'm at the Zoo" in YouTube history.

On April 23, 2005, a special user named Jawed Karim (he was a YouTube co-founder) uploaded the first video in history to YouTube.

This video is 18 seconds long and the title is "I'm at the Zoo." The resolution of this video is relatively low, upload time is in April of 2005, one month later May, YouTube begins public test. YouTube’s official release date was November of that year.

Later, Google spent $1.65 billion to acquire YouTube. Under Google’s big banner, YouTube has achieved significant development and has become the world’s dominant video site with monopoly power. Massive video producers and YouTube "red people" have obtained a lot of revenue from video ads, and become an important part of YouTube's video ecology.

According to statistics, YouTube’s global active users have already exceeded one billion people.

For Google, whose development is facing a shadow and the mobile-side transformation is unsuccessful, the globally popular Android system has not been able to provide substantial revenue, and YouTube has become the most important asset and source of revenue beyond search advertising.

Facebook's adversity

Facebook said on Wednesday that its users have watched 4 billion videos a day, compared with only 1 billion in September last year and 3 billion in January.

This data is sufficient enough for at least nine brokerage firms to increase Facebook's target stock price on Thursday, even though the company’s first quarter revenue growth was the slowest in two years.

Almost all analysts understand that video advertising is one of the most promising areas for Facebook's profit growth.

"Depending on video and mobile advertising needs, the Internet has reached a turning point, and FB (Facebook) may be the single biggest beneficiary of this inflection point," said Mark Mahaney, an analyst at RBC Capital Markets. Mahaney has raised his target price for Facebook by $17, from $88 to $105.

Earlier Thursday, Facebook reported $83.92, down about 1%.

Nearly seven years after YouTube co-founder Jawed Karim uploaded the “My Zoo” video at the start of the website, YouTube said in January 2012 that it had 4 billion daily visits. Today, Google has not disclosed YouTube’s ratings or profits.

Brokerage firm Cowen & Co estimates that by the end of this year, YouTube’s daily visits will reach 7.9 billion and generate $5.9 billion in revenue. The brokerage company expects Facebook’s video advertising revenue this year will reach about one billion US dollars.
Facebook launched an auto-play video ad in March 2014.

"In the course of FB's development into the premier digital/mobile video platform, its video consumption has maintained an explosive growth," Cowen analyst wrote in a customer report, raising Facebook's target share price from $91 to 94 dollars.

In the first quarter of this year, mobile advertising revenue accounted for 73% of Facebook's total advertising revenue, and its revenue contribution from the same period last year was 59%.

"In the future of mobile marketing, we believe that video will play an important role," Facebook Chief Operating Officer Sheryl Sandberg said in an analyst conference call on Wednesday. "Over 75 video viewers on Facebook. % is happening on the mobile side. We think that over time, mobile video will become more and more important to marketers."

In the first quarter ended March 31, Facebook’s revenue grew 42% to $3.54 billion, and net profit attributable to shareholders fell 20% year-on-year to $509 million. Adjusted profits were higher than market expectations, but revenue was less than expected, with advertising revenue increasing 46% to US$3.32 billion.

“...Although advertising revenue growth remains strong, the company seems to be stuck in the early stages of full commercialization of video advertising,” said Barclays Capital analysts.

Analysts have also seen a wealth of opportunities to use the messaging service WhatsApp, sharing photo apps Instagram, and virtual reality device maker Oculus Rift to increase revenue channels. Facebook is investing heavily in these products.

"Facebook's core business has maintained growth. Well-known catalysts are also gaining momentum. There is also the potential growth of WhatsApp by 2017 to 2017, which will bring about Oculus' growth in 2018," said analyst PiperJaffray Securities. Wrote.

As of Wednesday's close, Facebook's stock price has risen one-third in the past year.

Google executives: YouTube is accelerating growth

But despite Facebook's scorn, YouTube has become Google’s most important asset and source of revenue in addition to search advertising.

Recently, Google released its financial report for the fourth quarter of fiscal 2014. In the following analyst conference call, Google CFO Patrick Pichette stated that YouTube is accelerating its growth. Google has carried out many geographical expansions of the YouTube business, which itself It brings a lot of views and clicks. In terms of YouTube’s reach and ad performance, Google’s improvements to these ads include TrueView’s advertising. Basically, users see a full set of ads instead of skipping them in four or five seconds. The efficiency has increased.

Chief Commerce Officer Omid Kodstani said that YouTube’s TrueView ads added 45% of advertisers in 2014, so the top 100 global brands are here.


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