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Today, YouTube announced the launch of "Shorts" in the US. Following the TikTok ban in India, YouTube already launched a beta version of Shorts over there in September 2020. It nows generates over 6 billion daily views. For the beta launch in the US, Youtube has signed partnerships with over 250 publishers and music labels.
What's really interesting is that Google (and YouTube) might finally have found the product that will strenghten their lead in the mobile ad market. Over the years, Facebook, Instagram Snapchat, and more recently TikTok have been increasingly eating Google's lunch. With the launch of YouTube Shorts, Google might definitely reassert itself as the king of mobile and video ad networks. 1/29/21: Facebook CFO: "While the timing of the iOS 14 changes remains uncertain, we would expect to see an impact beginning late in the first quarter." At this point, Facebook is a mobile app, running a mobile ad network. Apple's latest measures WILL impact fb's bread & butter ... SIGNIFICANTLY.
Three months earlier CNBC's Meghan Graham wrote "Facebook under assault as Apple readies a change that would limit the ability of Facebook and other companies to target ads and estimate how well they work.” Facebook and Instagram should not worry; if users see value in the product (political ramplings, pics of their meals), they won't hesitate to pay for an ad-free account, especially in Tier 1 geos. Call it fb +. A fair price would depend on living standards & local ad markets (e.g facebook subscription in the US costs x times more than in India). Looking at their 2019 stats, a back of the envelope calculation shows that a monthly sub would be $2.50 to $2.75 a month with geo disparities. Free & paid accounts would co-exist. Given FB's scale, it'd not be difficult to test potential of the paid version. Would be a good way to diversify revenue sources w/o investing in R&D and marketing. |
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March 2021
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