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Advertising revenue of YouTube reaches 6 Bn, up by 49%

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Paawan Sunam
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YouTube advertising

Alphabet Inc, the parent company of Google released its Earnings Report for the first quarter of FY 2021, and here are few key takeaways from revenue generated from advertising on YouTube.

Revenue generated from YouTube continues to be a substantial contributor to earnings for Alphabet. Advertising revenue indicates a colossal growth for YouTube, which more or less remained unaffected by the pandemic. Non-advertising revenues such as subscription fees was also a key driver in generating revenue.

Direct Response advertising has been growing steadily on the platform, and Philipp Schindler, SVP and CBO, Google says "it's now a large and fast-growing business".

As several users come to YouTube to decide what they want to buy, the platform aims to improve the discoverability of products and add shopping capabilities. Shoppable functionalities for creators wherein viewers can make purchases through their videos have also been added.

Elevated consumer online activity and increased advertiser spend have advanced a strong year-on-year performance for most Google Services.

Also Read: YouTube announces new metric in Community Guidelines Enforcement Report

Here are few more highlights:

  • YouTube advertising revenues of $6.0 billion, up 49%, driven by performance in direct response and ongoing strength in brand advertising
  • YouTube Shorts continues to gain popularity, with over 6.5 billion daily views as of March, up from 3.5 billion at the end of 2020
  • A new metric, Violative View Rate has been added to the transparency reports to gauge what percentage of views on YouTube come from content that violates content policies
  • In Q4 of last year, YouTube’s violative view rate was between 16 and 18 views out of every 10,000. This is down over 70% compared to the same quarter in 2017
  • YouTube’s strong growth in the brand business, is touted to be fueled by a global consumer trend from linear TV toward streaming video. Over 2 billion monthly logged-in users and watch over a billion hours of video every day
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