Mumbai: YouTube generated more than $40 billion in advertising revenue in 2025, cementing its position as one of the world’s largest advertising platforms. However, the platform’s revenue growth is slowing as competition from TikTok and Netflix intensifies, according to WARC Media’s latest Platform Insights: YouTube report.
The report analyses YouTube’s advertising business, audience behaviour and campaign performance, highlighting how the platform is increasingly competing with traditional television for viewers while facing mounting pressure in the digital advertising market.
According to WARC Media, YouTube reached nearly 2.6 billion monthly users in 2025, with total platform revenue—including YouTube Premium subscriptions—surpassing $60 billion for the first time. Advertising accounted for $40.4 billion, growing 11.7% year-on-year.
Despite the strong topline performance, the pace of growth has moderated. Advertising revenue growth slowed from 14.7% in 2024 to 11.7% in 2025 and is projected to decline further to 7% in 2026, with ad revenue expected to reach $43.2 billion. Growth is forecast to recover marginally to 7.9% in 2027, when advertising revenue is expected to touch $46.6 billion.
Commenting on the findings, Alex Brownsell, Head of Content, WARC Media, and lead editor of the report, said, “Rising consumption of video content on YouTube, and in particular on TV screens, has not yet translated into the kind of year-on-year ad revenue growth we see elsewhere in the digital ad market. YouTube has been less successful than rivals such as TikTok in its attempts to persuade marketers of its role in driving lower-funnel outcomes, hence its growing focus on winning a greater share of TV budgets.”
TikTok and Netflix intensify competitive pressure
WARC noted that YouTube’s slowing growth partly reflects the maturity of the platform but also increasing competition for advertising budgets.
TikTok continues to attract marketers seeking stronger social commerce and performance marketing capabilities. Based on current growth trends, the report estimates TikTok’s advertising revenue could surpass YouTube’s by 2028.
Netflix has also emerged as a formidable rival following the success of its advertising-supported subscription model. WARC expects the streaming giant to strengthen its position among advertisers and subscribers over the next 18 months.
Nevertheless, research by DoubleVerify, Kantar and WARC’s Voice of the Marketer indicates that marketers continue to increase their investments in YouTube, underscoring its importance in global media plans.
Engagement deepens as TV becomes YouTube’s fastest-growing screen
The report found that YouTube’s audience continues to become more engaged, with users spending an average of 58 minutes per day on the platform in 2025, up from 48 minutes a year earlier.
India remains YouTube’s largest market with approximately 500 million users, followed by the United States with 254 million users. Indonesia and Brazil account for 151 million and 150 million users respectively.
A notable shift is underway in viewing behaviour, with connected television emerging as YouTube’s fastest-growing screen. Connected TV now accounts for 45% of total YouTube watch time in the United States, where average viewing sessions exceed 45 minutes and completion rates reach 95% or more.
The report also highlighted the rapid growth of YouTube Shorts, which now generates over 200 billion daily views globally. In several major markets, including the United States, Shorts has begun generating higher revenue per watch hour than traditional in-stream video advertising formats.
Gen Z emerges as YouTube’s most valuable audience
According to WARC, Gen Z has become YouTube’s most commercially active audience segment.
The report found that 51% of Gen Z males and 43% of Gen Z females made a purchase after watching an advertisement on YouTube Shorts, reinforcing the platform’s growing influence on consumer purchasing decisions.
YouTube has also strengthened its position in podcasts, overtaking Spotify for podcast viewing. More than 700 million hours of podcast content were watched via television screens on YouTube in a single month, representing a 70% year-on-year increase.
Trusted platform for advertisers
For the third consecutive year, YouTube was ranked the most preferred and trusted advertising platform among marketers globally, according to Kantar. It also ranked second in brand safety, behind Netflix.
The report noted that advertising effectiveness varies by format. In-feed advertisements deliver click-through rates between 1% and 3%, significantly outperforming the all-platform average of 0.65%, while non-skippable in-stream ads are better suited for brand awareness campaigns due to click-through rates below 0.3%.
Beyond advertising, WARC said YouTube has also overtaken Reddit as the leading social platform source for large language models (LLMs), creating a new layer of visibility for brands that maintain a strong presence on the platform.
