WARC: YouTube Podcast Viewing Surges.

YouTube has become one of the most-used apps to consume podcasts as the streaming service has seen its usage in the living room expand. But a new report from WARC Media offers some warning signs, as it says the platform’s ad business growth is slowing, and YouTube finds itself under pressure from rivals such as Netflix and TikTok.

WARC analysts say when it comes to podcasting, YouTube remains on a growth trajectory. “YouTube has overtaken Spotify for podcast viewing,” WARC says. Its analysis shows viewers watch more than 700 million hours of podcasts on YouTube via TV screens in a month. That is up 70% year over year.

In a new report, WARC says YouTube had annual revenue of $60.6 billion last year — of which $40.4 billion came from advertising, which was up 11.7% from 2024. But that double-digit growth rate doesn’t tell the entire story. The analysis points out that YouTube’s year-over-year ad revenue growth decelerated from 14.7% in 2024 to 11.7% in 2025. And WARC forecasts YouTube’s ad growth rate will drop to 7% this year and 7.9% by 2027, when ad revenue is expected to reach $46.6 billion.

The report says YouTube is facing growing competition for performance ad dollars as marketers favor platforms like TikTok for social commerce sites. At current growth rates, WARC predicts TikTok’s ad revenue could overtake YouTube’s by 2028.

“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,” says WARC’s Alex Brownsell. “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.”

More critically for podcasters, Netflix has also emerged as a key competitor — especially since it has continued to add video episodes as it strikes deals with creators and networks alike. Analysts say Netflix’s ad tier success positions it for long-term advantage in securing subscriber and advertiser investment and is expected to pull ahead of YouTube over the next 18 months.

Yet even with the challenges faced by YouTube, WARC acknowledges it remains a power player in the media world. It points to research that has shown marketers globally intend to increase ad investment with YouTube this year, suggesting it remains a core component in media plans.

The platform has roughly 2.6 billion monthly users worldwide, who spent an average of 58 minutes daily on the platform in 2025. That was up from 48 minutes in 2024, which WARC says reflects deepening engagement rather than audience expansion. Based on Similarweb App Intelligence data, YouTube generates the highest total time spent on any social or video platform globally.

YouTube’s largest reach is among 25- to 35-year-olds, who make up 21.7% of its user base. Users 35 to 44 rank second at 18.5%, with people over 65 representing the smallest share at 9.5%. But Gen Z is YouTube’s most valuable and commercially active audience. WARC says 51% of Gen Z males and 43% of Gen Z females made a purchase after watching an ad on YouTube Shorts, making YouTube a direct commerce driver for younger cohorts.

The data also shows consumption continues to grow as television is YouTube’s fastest-growing screen. Connected TV accounts for 45% of total YouTube watch time in the U.S., with average session lengths exceeding 45 minutes and completion rates of 95% or higher.

YouTube’s content mix is broader than any other platform, including an increasingly significant podcast offering. But according to Affinco data, music videos remain the most-watched content globally. Even so, WARC says YouTube’s strength lies in local, interest-led, and creator-driven content, while traditional broadcast and SVOD platforms are better positioned to create global cultural moments.