Advertisers will have spent US$5.6bn on YouTube this year

12 Dec 2013

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YouTube will bring in about US$5.60bn in gross ad revenues this year, according to eMarketer’s first-ever analysis of how much advertisers spend on the platform.

“YouTube doesn’t get to keep all its gross revenues, of course,” eMarketer pointed out.

After paying back advertising partners and video content creators, eMarketer still expects the company to net US$1.96bn in ad revenues worldwide this year, up 65.5pc over 2012.

“That translates to a 1.7pc 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,” eMarketer said.

emarket

In the US, YouTube will net US$1.08bn this year in ad revenues, equivalent to 6.3pc of all of Google’s net US ad revenues for the year, and a year-over-year increase of 51.7pc.

“Unsurprisingly, the bulk of YouTube’s ad revenues come from video formats,” eMarketer reported. “This year, US$850m in YouTube’s US ad revenues will come from video ads – helping the company to a dramatic 20.5pc share of the overall $4.15bn US video ad market.”

eMarketer said video ad revenues are expected 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 US$1.22bn next year, claiming a 21.1pc share of all US video ad revenues.

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Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com