YouTube’s Impressive Ad Revenue: The Result of Tremendous Growth in Online Video Viewing

Everyone knows YouTube is the reigning king of the online video world, and now eMarketer has released the numbers to prove it. Of the $4.15 billion U.S. video ad market, YouTube holds a 20.5% share.

The market research company predicts that YouTube will bring in around $5.60 billion in gross ad revenue this year. eMarketer expects that, after paying advertising partners and video content creators, the site will net $1.96 billion in ad revenues worldwide.

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This marks an increase of 65.5% over last year, and according to eMarketer, “That translates to a 1.7% share of all global digital ad revenues—higher than the market shares of Twitter, AOL, Amazon.com, Pandora, LinkedIn, Millennial Media and other large players.”

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In the U.S. alone, YouTube will net $1.08 billion this year in ad revenues. This is a 51.7% increase year-over-year and is equivalent to 6.3% of all of Google’s net US ad revenues for the year.

For YouTube, video ad revenue in the coming years is expected to increase significantly due to the growth of mobile video viewing.  In order to capitalize on growing mobile views, eMarketer vice president Clark Fredricksen says the industry is looking to YouTube for in-stream videos compatible across devices.

Coincidently, Ooyala recently released its 2013 Q3 Global Video Index which highlights this surge in mobile video viewing. It reports that since January 2013, the share of tablet and mobile video plays has shot up 74%. Additionally, mobile and tablet video share has grown 133% year-over-year.

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In the Index, the company includes a Mobile Video Monetization Checklist, which we’ll include for you below.

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The second bullet point encourages brands to integrate with leading ad platforms to drive increased targeting and revenue. Obviously, YouTube should be the number one video platform on companies’ lists. With over one billion unique visitors and six billion hours of video watched each month, YouTube is far from ignorable. As the site attracts additional mobile viewers, so too will it attract advertisers and brands that are looking to incorporate the site in mobile video marketing strategies.

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