YouTube triples its mobile advertising revenue in six months

Posted on June 8, 2013

 

Google’s video-sharing site has managed to increase its revenue from advertising threefold over the last six months, with the company’s iPhone app playing a key role in its advertising growth.

In Q1 2013, as much as £350m was generated from ads.

Increases in the percentage of YouTube’s global user base (which is estimated to be around one billion) accessing the site via a mobile device are said to have driven a boost in promotional spending.

According to EMarketer Inc, improvements in wireless networks – as well as the increasing adoption of smartphones and tablet computers worldwide – mean projections for the company’s video ad revenue in 2017 stand at $2.69bn. Going one step further, multinational finance firm Morgan Stanley has predicted that YouTube will be worth around $20bn for Google by the year 2020.

About a quarter of the website’s daily views – around one billion – come from mobile devices. This is 10 times greater than the number of daily views from mobile devices back in 2010.

Google has been keen to demonstrate to marketers the increasing popularity of its YouTube video-ads. In a post published in March on the AdWords Agency Blog, Google’s Advertising Research Director Gunnard Johnson discussed the new, super-connected generation of young people – or ‘Generation C’ – and how it accesses videos from a variety of platforms. Consequently, specialists in website marketing now typically advise clients to have mobile friendly sites.

Some analysts have pointed to the removal of the YouTube app from Apple’s iOS operating system as a factor in its sudden growth. When the YouTube app was automatically included in the iOS system, as part of a deal with Apple it couldn’t display ads.

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