YouTube Gives Advertisers More Bang for Their Buck than Meta & TikTok
Are Advertisers Undervaluing YouTube? The Per-Hour Ad Spend Story
A new eMarketer report points to a surprising imbalance in how advertisers allocate media budgets across major video and social platforms. When you compare ad spend to the actual time U.S. adults spend on each platform, Meta and TikTok are monetizing their audiences far more heavily than YouTube, despite YouTube’s massive reach and deep viewer engagement.
The Data: Dollars Per Hour
In 2023, advertisers spent per U.S. adult hour:
- Meta: $0.98
- TikTok: $0.31
- YouTube: $0.25
By 2027, those numbers are projected to be:
- Meta: $1.48
- TikTok: $0.76
- YouTube: $0.28
What This Means
When you measure ad investment against time spent, it appears one of two trends are happening:
a) Advertisers are spending the right amount on YouTube, but way overspending on Meta and TikTok based on each platform’s reach
b) Advertisers are spending the right amount on Meta and TikTok, but based on each’s reach, should be spending much more on YouTube
Why This Matters
- YouTube’s Engagement Depth
YouTube commands some of the longest average watch sessions in digital media, often with sound on, in full screen, and high attention environments. That’s premium real estate at a relative discount. - Room for Growth in CPMs
With ad spend per hour far below competitors, there’s untapped potential for brands to scale presence without hitting the frequency saturation seen on shorter-form feeds. - Better Value for Brand Storytelling
Longer watch times mean more opportunity for advertisers to tell stories, educate, and convert, making the undervaluation even more striking.
The Strategic Play
For brands seeking both scale and efficiency, reallocating budget toward YouTube (while maintaining a balanced cross-platform mix) could drive stronger returns without increasing spend.
Bottom line: The hours are being put in on YouTube. The audience is engaged. The spend, relative to that attention, is still catching up. For forward-thinking advertisers, that gap is the opportunity for investment, and a lot more of it.