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3 weeks ago
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YouTube‘s recent momentum can be attributed to many factors, but the living room appears to be chief among them.
Google Chief Business Officer Philip Schindler delivered a number of updates on the video platform’s recent performance during corporate parent Alphabet‘s third-quarter earnings call with Wall Street analysts. Prior to the call, the company reported better-than-expected results, with ad revenue at YouTube climbing 12% to $8.9 billion. Over the past four quarters, it has hit the $50 billion mark for the first time.
Upfront ad commitments this year rose about 20% from the previous year, Schindler said. The company’s annual Brandcast event for advertisers has been positioned for the past three years in mid-May, alongside pitches by traditional TV networks as well as hard-charging tech rivals Amazon and Netflix. In previous years, even large tech players like YouTube would entice ad buyers during the NewFronts, a separate event for digital outlets created during the early days of online video.
“We’re unlocking more opportunities in the living room,” Schindler said on the call. “Our momentum here continues as we maintain our status as the No. 1 streamer in the U.S., according to Nielsen.” In the measurement firm’s monthly Gauge market share report, YouTube earlier this year became the first streaming platform to crack 10% of all viewing via a television set during a given month.
Creators like Michelle Khare and Rhett & Link, Schindler added, “are increasingly crafting experiences designed specifically for the big screen. And it’s paying off. The number of creators making the majority of their YouTube revenue on TV screens is up more than 30% year on year.”
YouTube is also “becoming a premium destination for sports watching,” he added. “People come for the game and stay for the around-the-game content by creators.”
As an example, Schindler cited the Paris Olympics and also noted that NFL Sunday Ticket, now in its second season, has also been propelling tune-in beyond the Sunday game window. Content related to the Paris Olympics last summer, he noted, racked up more than 12 billion views, with more than than 850 million unique viewers watching more than 40B minutes of content. About 35% of that viewing came via TV screens.
Anat Ashkenazi, who took over as Alphabet CFO earlier this year, also highlighted “strong momentum” at YouTube during her remarks on the call. The 12% quarterly rise in the video service’s ad revenue, she said, was driven by brand ads, followed by direct response. Watch time on YouTube, she added, has posted “robust growth,” though she did not quantify it.
