Twenty years ago, the landscape for brand building was different than it is today. Brands used to drive revenue through awareness and consideration, and the effective combination of these led to a sale. Now, however, the formula for winning revenue starts with gaining attention, and with greater attention, the opportunities for monetisation grow.
YouTube was an early winner in the attention economy. When it launched in December 2005, the platform focused on increasing views. Conceived by three former PayPal employees, the platform suddenly enabled videos of all kinds to be shared easily. By March 2006, more than 25 million videos had been uploaded to YouTube.
It’s no wonder that Google bought the business a year later for $1.65bn (£1.27bn), a move that supercharged YouTube’s growth. Over the next five years, YouTube continued to add features and improve functionality, usability and insight, allowing greater access to performance metrics.
Then, in 2012, YouTube made a bold move: it switched its orientation from views to watch time. This was no small feat, considering Google’s goal at the time was to make searching the web fast and simple; it was not set up for longer engagement.
YouTube also had to convince content providers that watch time, or engagement, was a better metric than views. To make this transition successful, the company had to find innovative ways to curate content and work with advertisers to match ad and content placement.
Bold brand leadership
This was a bold act of brand leadership from YouTube. Moving the metrics from views to engagement was not only contrary to the industry approach, it also cannibalised some of its core business. But the bold move brought big dividends. The platform had surpassed 1 billion monthly users in 2012.
Video viewing continued to evolve over the next few years. In 2016, live-streaming took off and YouTube faced growing competition from Facebook. It quickly introduced its now-famous icon – the red play button – in a branding move that solidified its identity in a multi-platform, multi-device era.
YouTube entered Interbrand’s Best Global Brands ranking at 30th place in 2020; a testament to its growing influence and Alphabet’s improved financial transparency. By 2024, it had climbed to 24th place, boasting a 16% increase in brand value, and cementing its position as one of the most powerful brands in the world.
Today, YouTube is the second most visited website – Google is the first. Only Facebook has more active users; 3.1 billion compared with 2.5 billion.
The impressive numbers belie several challenges overcome in its 20 years. YouTube was a first mover in video, but many other platforms have since entered the market, not least Netflix, with its 300 million subscribers. Direct competitors such as TikTok and Twitch have also carved out niches and gained some market share. But YouTube is holding its own – users engage with the site for roughly 44 minutes a day compared with TikTok’s 58 minutes.
So what has made YouTube so successful? And what lessons can brands learn from its story?
1) There’s value in creating a community
YouTube has centred its brand around community and connections – two fundamental human needs. Our need for community is accessible through its platform. YouTube had 63.8 million content creators as of June 2024 – making it the world’s biggest brand incubator. From the latest in e-ink readers to puppy videos and ‘how-to’ solutions, everyone can find a home on YouTube.
Brand communities are a way to build dialogue and loyalty among customers. And while you can do it on your own platform, closed groups, networks and social media all allow for brands to support thriving communities in many spaces.
2) Forge human connections
Whether it’s a sentimental video or a series that helps people master a task or overcome a challenge, YouTube supports content that satisfies human emotions. It perfectly illustrates how brands can facilitate human connection.
The platform makes excellent use of first-party data to build experiences that meet customers’ expectations. Community and connections can be at odds with each other; one person’s community may offend another person’s connection. But YouTube’s analytical capabilities have enabled most users to avoid this tension.
3) Stay true to your brand’s values
YouTube’s critics have argued that TikTok, for example, provides a better user experience because it delivers what people might not expect – but might still enjoy. TikTok has seen tremendous growth in users but this does not translate directly into earnings.
YouTube has monetised its audience with control by staying true to its values. Brands looking for growth need to know what changes will bring monetary reward in the long run.
4) Your partners’ success is your success
YouTube has done a wonderful job of supporting its creator partners; another layer of protection against competitors biting at its heels. It knows that its users’ success is its success.
Its partner programme helps creators make money as their content curation gives them credibility with advertisers. YouTube now accounts for 13% of Google’s total revenue, and commitments to content such as the NFL package and YouTube TV help defend against competitive encroachment.
YouTube understands that people have a finite amount of attention, so the battle for attention is ultimately zero sum. As the platform continues to grow, it will need to match and exceed competitors’ innovations to maintain its brand-leadership position. For brands looking to learn from the success of the original video-sharing platform, the most salient question may be, are you shaping the future or simply reacting to it?
