Google is in trouble… but this could change everything – and no, it's not AI

Is Google collapsing right before our eyes? Legal battles are mounting, its AI products are “meh” at best, and the traditional search model faces real disruption from AI. Things don’t look great.

But despite all that, what if I told you I’m still bullish on Google — just not for the reason you think? 🤓☝️

Also: Google launches Gemini with Personalization, beating Apple to personal AI

Hear me out. I know this sounds unbelievable, but YouTube, not AI, might be Google’s saving grace.

Amid the tumultuous past 12 months, YouTube has quietly achieved remarkable success in the world of podcasting. With over 1 billion monthly views — yes, billion with a B — YouTube is quietly becoming the leading platform for podcast consumption.

Here’s what’s fascinating about that stat.

These podcast episodes are often available elsewhere in audio-only formats. Yet, audiences are choosing YouTube, a visual platform. This tells me people are seeking personal connections with podcast hosts. They don’t just want to hear hosts; they want to see them in action. It shows people still value human connection more than the next AI trend. 🤔

It’s so easy to get caught up in whether this is a video or a podcast and ignore what’s happening, which is our desire as humans to connect.

Also: How to download YouTube videos for free – 2 ways

In this article, we’ll pull on the thread of what Google’s future could look like, why I’m bullish on Google even with all the drama, and how this might be your big opportunity to thrive in the years ahead. 🚀

This story is way more fascinating than a billion podcast views.

Before we jump in, let me introduce myself. I’m Lester, but you can call me Les. 👋

I’m a founder with a successful exit, executive chairman of several DTC brands, and an award-winning performance marketer.

My job is analyzing data and spotting trends, so we’ve built tools to do that precisely. If you like data-driven marketing insights, check out my free newsletter, No Fluff Just Facts. All that said, let’s get into why I’m so bullish on Google.

The numbers tell a compelling story

Google acquired YouTube from Chad Hurley, Steve Chen, and Jawed Karim in 2006 for $1.65 billion. Many people thought Google overpaid at the time, but let’s dive deeper into why this might be one of the best acquisitions ever.

Don’t quote me on this, but from the outside looking in, YouTube always felt like Google’s side hustle. I’m not saying Google doesn’t take YouTube seriously, but it seems like they purposely downplay their ownership — almost as if they’re saying, “We’re all about search, and we kind of do video, too.” But hey, maybe that’s just me. 🤗

It makes sense why Search is the star of the show, as it’s a massive part of their business. However, there are 36 billion reasons why you should pay attention to YouTube.

Here’s Google’s revenue breakdown:

• Google Search & Other: $198.1 billion
• YouTube Ads: $36.1 billion
• Google Network: $30.4 billion
• Google Subscriptions, Platforms, and Devices: $40.3 billion
• Google Cloud: $43.2 billion
• Other Bets: $1.6 billion
• Total revenue: $350.0 billion

Source: Google FORM 10-K for the fiscal year ended Dec. 31, 2024

At first glance, it looks like Google Cloud is Google’s second-largest segment, followed by Google Subscriptions, making YouTube Ads number four.

So I know what you’re thinking: Being number four hardly makes it the future. Impressive, sure, but maybe you’ve unraveled your own string here.

But what if I told you YouTube revenue is included in “Google Subscriptions”? 🤓☝️

Here’s how Google describes this business unit:

Google subscriptions, platforms, and devices revenues are comprised of the following: consumer subscriptions, which primarily include revenues from YouTube services such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; platforms, which primarily include revenues from Google Play sales of apps and in-app purchases; devices, which primarily include sales of the Pixel family of devices; and other products and services.

It is kind of strange they don’t group YouTube TV, YouTube Music, and YouTube Premium under something like “YouTube Subscriptions.” I mean, YouTube is right there in each product name, so placing this revenue in “Google subscriptions, platforms, and devices” is an interesting choice. 🤨

Also: I’m a long-time YouTube video producer – these 3 AI tools help me do it better and faster

That said, Google doesn’t clearly explain how much of the $40.3 billion comes from the YouTube platform, but based on their description and choice of phrasing like “primarily include,” it’s safe to assume YouTube generates significantly more revenue than just the $36.1 billion reported. This would mean YouTube, not Google Cloud, is actually Google’s second-biggest business.

The side hustle is crushing it. YouTube’s revenue keeps climbing, and it’s becoming even more culturally relevant. 🤑

As I said, this story is way more interesting than podcast views.

Here’s why all of this matters to you

Remember when I mentioned the incredible growth of podcasts on YouTube? Given the recent surge in views and revenue growth in 2024, it’s not crazy to think that YouTube, even after 20 years and over $40 billion in revenue, is just getting started.

The opportunity here is twofold. 🕵

The best time to start advertising would have been 10 years ago, but right now is as good a time as any to market your product or service on the platform. What I love most about YouTube is that you can work directly with creators, and your reach isn’t throttled like on other platforms.

For instance, partnering with niche podcast creators can help you tap into highly engaged audiences. You can also use YouTube ads to spread the word, but combining creators with YouTube ads is a powerful strategy. In fact, according to a study by AspireIQ, influencer marketing earns 11x the ROI of a standard digital campaign, and 92% of consumers trust recommendations from friends, family, and influencers. 🤝

Also: Gemini can now watch YouTube for you – skip the video, get the highlights

Beyond using the platform as an advertising channel, the other big opportunity is becoming a creator yourself. I’m not saying you need to be Mr. Beast, but there are countless success stories of creators with small audiences who’ve built meaningful businesses. A small business owner can build a loyal audience and establish authority by starting a podcast focused on industry insights.

This approach works because viewers spend over 40 minutes per session on YouTube, highlighting the power of human connection. In fact, 75% of B2B buyers and 84% of C-level/vice president (VP) executives surveyed use social media to make purchasing decisions. 📢

Here are the statistics I find most interesting: A large segment of YouTube’s audience is aged 18 to 34, but it remains popular across all generations, indicating it has staying power. This broad appeal is crucial if you are going to invest time in building an audience. Moreover, with YouTube’s podcasting growth, you can tap into a highly engaged audience that is increasingly seeking visual content alongside traditional audio podcasts.

My two cents

I’ll leave you with this: YouTube Ads grew while Google Network ads declined, signaling a clear shift toward video-first engagement.

It’s not hard to see why I’m so bullish on YouTube being the future of Google instead of AI.

Of course, Google will integrate AI into all its products, but based on the current evidence, I don’t think AI will be the main event. It’ll be more like a side hustle unless something fundamentally changes. 😤

Also: Google Gemini just made two of its best features available for free

But let’s put Google’s success aside for a second and focus on you. Now is the perfect time to launch your podcast or video. Whatever you choose to call it doesn’t matter nearly as much as putting yourself out there now.

AI can help with tasks like generating ideas, but the world must know who you are and understand the value you bring to the marketplace. Whether you partner with creators to help tell your story or decide to do it yourself, now is your moment. 💪

This story isn’t just about podcasts or revenue. It’s proof that people crave genuine connection, and your audience is waiting for you.

BTW, if you want more data-driven marketing insights, consider signing up for my free newsletter, No Fluff Just Facts. I share what’s working in the world of marketing, AI trends you need to pay attention to, actionable tips, and the occasional meme (being an adult is overrated). Click here to sign up.

😇 Hope this helps. I’m rooting for you.