YouTube has been facing a revenue drop in the last 3 quarters. Ad blockers are the major reason why YouTube is losing ad revenue. And to fight that, YouTube is now pushing premium subscriptions and blocking ad blockers.
You may find it surprising for a big tech giant like YouTube to block ad blockers. But if it can help YouTube to grow ad revenue, then it will be a wise step.
The issue came to light when a Reddit user posted about YouTube’s popup message saying, “Ad Blockers are not allowed on YouTube.”
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| YouTube Blocks Ad-Blockers to Increase Ad Revenue: eAskme |
You will also see this message if you are using an ad-blocker when watching a monetized video.
This is a serious step to fight ad blockers and stop revenue loss.
Google also blocked ad-blocking apps from Playstore in 2016. Google Chrome is also blocked ad-blocking extensions.
In 2022, YouTube also shut down YouTube Vanced, a third-party app blocking ads on monetized videos.
Why is Ad Revenue Dropping?
YouTube is losing ad revenue every quarter.
Alphabet has reported a 2.6% revenue drop in YouTube’s earnings from ads.
Even though YouTube is earning more than predicted by analysts. Yet, companies want to deal with every issue that can cause them to lose ad revenue.
YouTube is also facing tough competition from TikTok.
This is why YouTube has introduced Shorts and allowed users to monetize them.
Growing YouTube Premium Subscriptions:
YouTube also pushes users to choose premium subscriptions to block ads rather than using ad blockers.
Premium subscriptions will not hit the revenue of content creators as they will still earn when a user with a premium subscription watches their videos.
It shows that YouTube Creators can consider YouTube Premium Subscription as a new way to earn money, but they have no control over it.
Conclusion:
YouTube is facing intense competition and revenue loss each quarter. The company has decided to block ad blockers and make users choose premium subscriptions over any ad-blocker app.
There is a change in YouTube’s CEO post as Neal Mohan has replaced Susan Wojcicki. It will be interesting to see how YouTube fights ad blockers and counts on premium subscriptions to find ad-revenue loss.
Premium subscriptions will benefit both content creators and YouTube businesses.
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