Revealing YouTube’s Q1 2024 Advertising Revenue

YouTube CEO Neal Mohan announced on Thursday that the video advertising market on YouTube continues to thrive, despite the struggles of linear TV. In the first quarter of 2024, YouTube reported advertising revenue of $8.1 billion, a significant increase of more than 20% from the previous year.

During the earnings call, CEO Sundar Pichai highlighted the importance of subscriptions for YouTube, with YouTube Premium and Music now boasting over 100 million subscribers, and YouTube TV surpassing 8 million subscribers. Pichai emphasized the growth in the living room segment, attributing it to strong watchtime growth and a shift in brand advertising budgets from linear TV to YouTube.

Google’s chief business officer, Philipp Schindler, noted that YouTube’s success is driven by viewers’ expectations of accessing diverse content in one place, including their favorite creators, live sports, news, educational content, movies, and music. Advertisers are also drawn to YouTube to reach audiences they can’t find elsewhere.

Despite the positive growth in subscriptions and advertising revenue, the cost of revenues also increased by 10% to $20.7 billion, primarily due to content acquisition costs associated with YouTube. The company’s parent company, Alphabet, reported a total revenue of $80.5 billion and a net income of over $23.6 billion, with the majority of revenue still coming from Google search.

As YouTube continues to expand its offerings and attract more subscribers and advertisers, the future looks bright for the video platform in the ever-evolving landscape of digital advertising.