Google started rolling out YouTube ads in 2007 and since then everybody wants to know how much they are making. And YouTube’s ad revenue is finally here for your eyes.
The numbers are mind-boggling. The tech giant revealed that they made a whopping $15 billion in 2019 alone from YouTube ads.
And you know what, this amount doesn’t include revenue mustered form video platform and subscriptions. This figure, $15 billion, is equivalent to 10 percent of Alphabet’ total revenue.
The Rapid Growth in Revenue
As we all know, Google’s cloud business is growing rapidly. For the first time, Google revealed revenue sourced from its cloud business. It is to be mentioned that the Alphabet’s final quarter earnings are yet to be revealed.
“I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate,” Google CEO Sundar Pichai said.
It Just Doubled
YouTube’s ad revenue in 2017 is approximately $8.1 billion. The revenue just doubled in 2 years. And this shows at what pace YouTube is flourishing in this digital ecosystem.
Up until now, Google has declined to break out YouTube’s revenue, which has been a source of much speculation.
Until now, Google didn’t open anything about YouTube’ revenue. This leads people to assume some random figures. This move from Google has shut the doors of rumours.
YouTube’s Non-Advertising Revenue
Sundar Pichai also revealed the revenue generated from YouTube’s subscription business. With 20 million subscribers to YouTube Music and YouTube Premium, YouTube is making somewhere close to $3 billion.
This non-advertising revenue includes revenue earned from YouTube TV which has 2 million subscribers.
Google Cloud business generated a whopping amount of $8.9 billion in 2019 alone. This is 53% more compared to the revenue it made the previous year which is $5.8 billion. The increase in demand for data storage is clearly visible in these mind-blowing numbers.
Disinformation and unsavoury content is a disease that’s troubling YouTube. Though YouTube is not facing privacy issues, unlike Facebook, it is still scrutinized for antitrust.
We can expect YouTube’s ad revenue to rise even more in 2020 and the numbers shouldn’t surprise you. The way people consume content is changing and it is 200% clear that people are moving to video content from text. That’s a good sign. Stay tuned for more updates.