Samuel Nkwam, analyst at Omdia, in a report, has highlighted that YouTube’s strategies for growth and monetization in emerging markets like sub-Saharan Africa are multifaceted. Google’s YouTube is aiming to strengthen its ad-supported model, enhance accessibility, and cater to both creators and viewers with unique needs in these regions.
Google, announcing its financial result for Q3 2024, said YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters — for the first time. Google’s digital advertising revenue from YouTube alone was $8.92 billion in Q3 2024. Google says YouTube TV, NFL Sunday Ticket, and YouTube Music Premium are driving subscription growth for the platform.
Here are some key strategies:
# Ad-Blocker Crackdown to Boost Ad-Supported Revenue
YouTube’s recent ad-blocker restrictions have been central to its strategy, aimed at maximizing ad impressions. By enforcing ad visibility, YouTube is increasing revenue opportunities for both the platform and content creators, especially important in regions where the ad-supported model dominates over subscription services.
This strategy aligns with the realities in sub-Saharan Africa, where high data costs and economic factors limit the uptake of YouTube Premium. A GSMA Intelligence report said two thirds of the population in Africa do not use mobile internet. Africa accounts for nearly half of the 350 million people around the world who do not live in areas covered by mobile broadband networks.
# Partnerships with Telecom Operators
YouTube has established partnerships with local telecom providers, offering zero-rated or subsidized data bundles that make streaming on YouTube more affordable. These partnerships not only improve accessibility but also encourage longer viewing times, enhancing ad exposure and revenue potential.
This strategy makes ad-supported content on YouTube a viable alternative to paid subscriptions, which have yet to gain significant traction in many parts of sub-Saharan Africa.
# Support for Local Content Creation and Distribution
YouTube recognizes the value of Nollywood and other local content industries, actively encouraging creators to upload content directly on its platform. By offering robust copyright protection and monetization support, YouTube helps protect creators’ work from piracy, thus encouraging more direct-to-YouTube distribution.
This has not only increased the availability of free Nollywood films on YouTube but has also helped Nigerian filmmakers reach broader audiences, including the African diaspora. Google says the number of creators making the majority of their YouTube revenue on TV screens is up more than 30 percent.
# Flexible Monetization Models and Creator Support
To encourage more creators to join and monetize on YouTube, the platform has rolled out various monetization features such as ads, memberships, and, in some regions, Super Chat and merchandise options. For African creators, who may struggle to meet strict SVOD requirements, YouTube offers a more accessible way to earn revenue.
YouTube’s local partnerships with multichannel networks (MCNs) like Aforevo help smaller creators by aggregating their content for advertising revenue while providing copyright and marketing support.
Google says YouTube is becoming a major destination for sports watching. Content from Paris Olympics 2024 had over 12 billion views on YouTube. More than 850 million unique viewers watched over 40 billion minutes of content, with 35 percent on their TV screens.
# Targeting Diaspora Audiences for Higher CPMs
YouTube’s focus on the African diaspora in regions like the UK, the US, and Canada helps drive higher revenue per thousand impressions (CPMs) due to more favorable advertising rates. This allows Nollywood content to earn more on YouTube than it would in strictly local markets with lower CPMs.
By supporting direct-to-YouTube distribution, YouTube leverages this international viewership, positioning Nollywood content to tap into a more lucrative advertising market.
# Expanding Connected TV (CTV) Viewing
Recognizing the revenue potential of CTV, YouTube has worked to improve access to its platform on various connected TV devices. This strategy supports higher ad revenues compared to mobile devices, which are more common in Africa but generate lower CPMs.
As CTV adoption grows, YouTube aims to increase engagement on these devices, allowing for more extended and profitable ad sessions.
# Localized Ad Formats and Enhanced Copyright Tools
YouTube has optimized its ad offerings by tailoring ad formats that cater to viewing behaviors in Africa, where shorter, mobile-friendly ads are more effective. By allowing for both short- and long-form ads, YouTube provides flexibility to adapt ad loads to user habits, enhancing ad engagement without sacrificing user experience.
Enhanced copyright and monetization tools help YouTube maintain its role as a piracy-deterring platform, reinforcing trust among Nollywood producers and encouraging them to view YouTube as a secure platform for content monetization.
Omdia indicated YouTube is becoming a valuable digital platform for Nollywood and other content producers across Africa, where high-quality streaming options are limited, and accessibility through ad-supported content holds greater appeal. By adapting to regional needs and supporting both creators and consumers with tailored strategies, YouTube is fostering an ecosystem that enables African content creators to thrive in both local and global markets.
Baburajan Kizhakedath