Institute of Marketing Communications India®

YouTube gets $6 billion in ad revenue with 49% growth in 2021 Q1

Youtube sees a crazy jump in its advertising revenue in the first quarter of 2021 with $6 billion. A major contributor to this has been the increased digital consumption of videos of people globally. The pandemic has played a major role in the increase in Google and YouTube’s parent company Alphabet.

YouTube's chief product officer Neal Mohan remarked, "Though mobile still makes up the largest percentage of how content is consumed on the platform, our fastest-growing viewing experience is on the TV screen. Last December, over 120 million people in the U.S. streamed YouTube or YouTube TV on their TV screens. And there’s another interesting viewing behavior emerging. A new generation of viewers chooses to watch YouTube primarily on the TV screen: Also in December, over a quarter of logged-in YouTube CTV viewers in the U.S. watched content almost exclusively on the TV screen."

Now YouTube is almost close to its competitor Netflix in the digital earnings. This ad revenue is solely from Youtube and does not include subscription-based services like YouTube TV and YouTube Premium. These included would add up to more revenue in the bucket of Alphabet.

Be it any digital platform, Youtube or Netflix, both have surpassed the regular television viewership. These platforms are more convenient for the digital generation of today.

Google’s Senior Vice President says, "Historical approaches to reaching audiences through, let's just say, call it, linear TV doesn’t really work anymore. Advertisers are using YouTube now to reach the audiences they can't find anywhere else. And remember, more 18-to-49-year-olds are actually watching YouTube than all linear TV combined. And brands are also seeing more incremental reach on YouTube compared to TV."

There has also been an increase in the viewership of YouTube shorts, which is a newly launched short video feature on YouTube. Shorts had around 6.5 million daily views in March 2021 as compared to 3.5 million daily views in 2020 end. Thus, be it long-form or short-form video content, the trend is ever-growing across the world adding up to more revenues for all these platforms.


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