Monday Alphabet, owner of Google, YouTube, and Waze, among other brands announced its financial results, highlighting that for the first time made public revenue data generated by YouTube, something that surprised many for what they represent. Well, unintentionally, Instagram It made the video platform look a little bad because, apparently, it generates much more money.
The data is relevant in times when Google and Facebook continue to dispute being the main recipient of digital advertising, before Amazon begin to squeeze both and in which the segment begins to slow the pace.
The two jewels that must be taken care of
Among the numbers given by the matrix of Google In his report for the fourth quarter and for all of 2019, some stood out: that between October and December he obtained revenues of more 46 thousand 075 million dollars, and net earnings for 10 thousand 671 million dollars.
The closing of 2019 was good, but all year in general also for that of Mountain View, he indicated that his income amounted to more than 161 thousand 857 million dollars, and net earnings for 34 thousand 343 million dollars.
The interesting thing is that the advertising business in YouTube is growing, generates 15 thousand 149 million dollars, an increase of 35 percent compared to 2018. This made it shine not only because it is the first time its revenues are made public, but because of the weight it acquires; around the 9 percent of the total income of the parent company.
This naturally aroused expectation among analysts, media and financial markets. However, the taste lasted only one day because on Tuesday it transpired that Instagram generated about 20 billion dollars in the same period.
This was a report of Bloomberg which highlights that the social network of photos and videos that Facebook acquired in 2012 for about 715 million dollars, It already represents a quarter of the total revenue of the company led by Mark Zuckerberg.
The medium that, cited sources familiar with the matter – who asked to remain anonymous – makes a space to point out how it exceeds what YouTube generates.
Without a doubt, this demonstrates, on the one hand, the relevance that Instagram has acquired in the last two years for Facebook and that it will continue to be key for its growth in the future, especially because of the problem facing the largest social network in the world, marked by a slowdown in the sum of new users since it has lost interest among people like millennials and, mainly among the Z generation. This without forgetting the expense that has represented trying to overcome corporate reputation crises hoping to regain user confidence and Advertisers
In the case of Youtube, Surprised numbers, we must remember that also went through critical moments for issues of programmatic advertising and hate content or extremists, something that also had to work implementing various changes in the platform.
Now that Facebook doesn't ruin it
It's clear that Google is busy making YouTube an increasingly profitable platform. We may think that Facebook looks for the same with the Instagram case, but we don't know if it looks for it in the most effective way.
Ok, we do not say that he is destroying the app that was once the queen between the millennial generation and Z beating Snapchat (now he disputes it – maybe he already loses – with TikTok), adopting the FB model to monetize the platform selling advertising.
At first they made changes that conquered users; Stories -which has more than 500 million daily users-, Stickers and augmented reality filters were a hit, even giving brands the ability to sell items directly from the application or boost the influencers boom were great successes.
But, the desire to integrate the application with Facebook and WhatsApp has not been fully accepted among the users and, although we will notice whether or not to specify (part that could be stopped), this type of adjustments, the little success of IGTV and The growth of TikTok leaves little room for error in the company of Menlo Park, which, if it starts to go against the experience and the naturalness of the user community, could ruin its jewel in the Crown.