YouTube is producing $2bn a month from adverts – and catching Netflix


YouTube’s advertising business is exploding.

The platform’s latest sales figures were released last week as part of parent company Alphabet’s Q1 results.

They show that YouTube is now generating an average of over $ 2 billion of ads every month – and that it may be on the way to generating somewhere nearby $ 30 billion later this year.

They also show that YouTube’s advertising business significantly closed the subscription-based Netflix revenue gap in the first quarter.

According to Alphabet, YouTube was generated $ 6.005 billion of advertising in the three months to the end of March this year.

That was almost over $ 2 billionor 49% to the $ 4.038 billion YouTube generated over the same period in 2020.

If YouTube can maintain that + 49% growth over the course of 2021, it will turn over more than $ 29 billion this year.

YouTube ad revenue is growing so fast now $ 6.005 billion Revenue in the first quarter of 2021 was roughly twice what YouTube’s advertising revenue was two years earlier in the first quarter of 2019 ($ 3.025 billion).

Netflix topped YouTube’s advertising revenue at $ 7.163 billion in the first quarter – a number that has increased $ 1.395 billion YoY.

However, YouTube’s first quarter ad revenue ($ 6.005 billion) increased $ 1.967 billion More than half a billion dollars year over year versus Netflix’s growth over the same period.

Despite initial concerns about how the pandemic would affect online advertising, YouTube’s annual ad revenue came in at last year $ 19.772 billion.

That was around a third higher (+ 30.5%) on sales for the previous year ($ 15.149 billion).

Of course, YouTube’s revenue isn’t just coming from ads these days.

The platform also has a significant subscription business that includes subscribers to the YouTube Music music service and the YouTube Premium tier (which includes a subscription to YouTube Music).

Alphabet’s Q1 results did not update YouTube’s global subscriber count. The last confirmation of that number was for the quarter ending September 2020 when Alphabet confirmed that YouTube Music and YouTube Premium had more than 30 million paid subscribers (and over 35 million including free trials) in common.

YouTube’s global music director Lyor Cohen confirmed in November that more than 2 billion registered YouTube users are now playing music on the service each month.Music business worldwide

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