How Google plans to build on YouTube's $15 billion in ad revenue - Business Insider

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Alphabet's decision to finally disclose YouTube's revenue is likely motivated by a desire to highlight YouTube's growth amid an earnings miss and declining search ad growth

. In the 2019 fiscal year, YouTube captured $15 billion in ad revenue, growing 36% year-over-year and accounting for almost 10% of the company's total revenue.To put the platform's size in perspective, last year YouTube pulled in more money than all of the ABC, NBC, and Fox broadcast networks combined and was around $5 billion short of Netflix's overall 2019 revenue of $20 billion.

The decision to finally disclose YouTube's revenue after 15 years is likely motivated by a desire to highlight YouTube's growth amid an earnings miss and declining search ad growth. YouTube's ad revenue nearly doubled in the last two years, rising from approximately $8 billion in 2017 to $15 billion in 2019, with annual growth of around 37% and 36%, respectively.

In comparison, growth in the substantially larger Google Search & Other category decelerated, dropping from 22% in 2018 to 15% in 2019 — below most estimates for the year.

Google CEO Sundar Pichai highlighted two ongoing efforts to make sure YouTube continues to attract ad dollars in the years to come: YouTube's plans to bolster shopping on the platform, amid a more general push into direct response advertising. Like a number of digital platforms such as Facebook, Instagram, and Pinterest, YouTube is attempting to move further down the purchasing funnel and encourage users to engage directly with the advertisements placed on the platform. Last year, YouTube

 

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