This study analyzes two key challenges that YouTube faces in the digital media landscape: balancing profitability and user experience in its advertising strategies, and competing with short-video platforms like TikTok. These issues are critical for understanding the marketing strategies and sustainable development of online video platforms. The research combines a qualitative assessment of YouTubes historical business models and case studies with quantitative data analysis, including advertising revenue, to explore the drivers behind its remarkable profits and viewership. The findings reveal that in-stream Ads have successfully improved the video completion rates by utilizing a 5-second skippable format and targeting advertisements related to video content through algorithms, while also effectively promoting products to users simultaneously. Besides, to counter the fierce competition from TikTok, YouTube has launched the Shorts feature, offering Shorts funds to encourage more creators and more high-quality videos. This research highlights that YouTube's strategic shift toward user autonomy and a hybrid content model serves as a model for online video platforms. These insights provide an operational framework for digital marketing and platform economics.
Zhouhai Chen (Wed,) studied this question.
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