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Youtube Brings In $5 Billion In Ad Revenue As Alphabet And Google Bounce Back

superadmin by superadmin
November 18, 2020
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YouTube Earns $5 billion in ad revenue as Alphabet and Google bounce back

 

Alphabet, Google’s parent company, announced that their third quarter revenue surged 14% from the previous year, led by an advertising revenue rebound for both YouTube and Google.

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YouTube got $5 billion in ad revenue in this year’s third quarter — a sign that those advertisers who pulled back on spending due to the pandemic earlier in the year may be coming back. 

 

Now, YouTube has over 30 million premium paid subscribers and music. If you include free trials, make that 35 million. Moreover, YouTube TV has over 3 million subscribers. That’s strong. Since last June, YouTube TV announced a monthly cost increase from $50 to exactly $64.99. 

 

Views for some guided meditation videos were up 40% since March. Alongside that, do-it-yourself face mask tutorials have been viewed more than 1 billion times, Sundar Pichai said on a call with the investors to talk about earnings results. Sundar Pichai is Google’s CEO. 

 

Ruth Porat, Google and Alphabet’s CFO, said they were pleased with how advertisers reactivated their ad budgets in 2020’s third quarter. It’s evidence that people are showing huge demand across almost all verticals. The strong growth in YouTube’s watch time enables advertisers to reach out to audiences that they can’t reach on television. 

 

YouTube has invested in content moderation to see to it that both users and creators have a positive experience. 

The advertising division of Google got $37.1 billion in revenue. This is an increase from last year’s $34 billion. YouTube’s ad revenues increased 30% from $3.8 billion in 2019’s third quarter.

 

This quarter was a contrast to the very disappointing 2020 second quarter, where Google’s revenue decreased for the first time ever. Google shifted back to its growth with a revenue of $46.2 billion in the third quarter (up from $40 billion last year), and a $11.24 billion net income (up from $7.06 billion last year).

 

Google’s other departments, which is home to the Play Store, cloud services and hardware, had a $5.4 billion revenue, an increase from $4 billion. Waymo, Verily and its “other bets” segment, earned $178 million, but remained the money-losers for the company. That is worse than last year.

googleGoogle’s cloud division earned $3.44 billion (an increase from $2.3 billion last year), while its Search segment had $26.3 billion revenue (an increase from $24.7 billion). As per Pichai, customers are rapidly moving to the cloud for lower IT costs and stronger efficiency.  The future of “work” is making huge growth in demand for the cloud products of Google. He said that the company will soon break out the cloud division and turn it into a separate reporting segment. Meanwhile, Google Meet had over 7.5 billion day-to-day video calls and a revenue of over 7.5 billion.

If you want to read more articles like this click here.

 

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