YouTube 2013 gross revenues set to hit $5.6BN

Parent Category: News | 12-12-2013

The online video 800-lb gorilla has really begun to flex its muscle as eMarketer data has revealed that advertisers are set to spend $5.60 billion on YouTube with $1.96 billion of net global digital ad revenues giving it a fifth of the US video ad market.

YouTube has exercised an iron grip on the online video market for a long time now with the latest comScore Video Metrix showing that the destination is now reaping huge financial rewards. In October 2013, Google Sites driven by YouTube generated 3.6 billion ads with 371 million ad minutes with the average viewing watching 31.2 ads giving the company a 37.1% viewer reach in the US.

In its first-ever analysis of how much advertisers spend on the platform, eMarketer calculates that the year’s net ad revenues of just $2 billion would represent 65.5% growth compared with 2012 and would constitute a 1.7% share of all global digital ad revenues, higher than the market shares of Twitter, AOL, or Pandora.

The gross revenues of $5.6 billion would be 11.1% of all Google gross takings, up 2.6 percentage points on 2012. eMarketer adds that in the US YouTube will net $1.08 billion this year in ad revenues, equivalent to 6.3% of all of Google’s net US ad revenues for the year, and a year-over-year increase of 51.7%. It adds that the majority of YouTube’s ad revenues come from video formats generating in 2013 $850 million in proceeds. This will give the company a 20.5% share of the overall $4.15 billion US video ad market.

Looking to the near future, eMarketer expects video ad revenues to increase significantly in coming years for YouTube’s US operations, particularly as mobile video viewership grows. It estimates the company’s revenues from video ad formats will hit $1.22 billion in 2014, claiming a 21.1% share of all US video ad revenues.