Recently, articles have hinted that YouTube's dominance of Internet video was eroding, which Google's management reversed with Alphabet's parent company's second quarter earnings presentation on Thursday. July. The company respected its tradition and did not detail YouTube's earnings separately. However, she said the mistrust of regulators and advertisers had not affected YouTube's revenues.
"YouTube's revenue growth was strong in the first quarter, and still strong here in the second quarter"said Ruth Porat, chief financial officer of Google Alphabet, at the earnings conference call. She said YouTube has been Alphabet's second most important revenue growth driver. The group exceeded analysts' expectations with a total turnover of $ 38.9 billion (about 35 billion euros), up 19% from the previous year, thanks to mobile search, to YouTube and the cloud.
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YouTube has been the target of criticism from advertisers whose ads have repeatedly appeared alongside unsavory content. The platform is also subject to regulatory review: the US Department of Justice has opened an investigation into Google's dominance of the market and the Federal Trade Commission would have considered asking YouTube to turn off content ads for children, reported Axios.
The creators continue to flock to Youtube, ensures Sundar Pichai
Advertising activity, central to Google, also rebounded. After a poor performance in the previous quarter, advertising revenues increased by more than 16% over the same period last year, outperforming analysts' forecasts, which forecast growth of just over 15%. Ruth Porat attributes this increase to the fact that direct advertising has become more important in recent quarters.
Sundar Pichai, CEO of Google, also said that YouTube continues to be a major investment and that the platform was experiencing strong growth in several areas. He said that creators continued to stream to YouTube and that channels with more than one million subscribers had grown 75% in one year. He also discussed new monetization products like SuperChat, Channel Memberships and Merch, which allowed "thousands of channels" to double their total monthly revenue. And he also said that YouTube is gaining momentum with its subscription services – YouTube Music and YouTube Premium – which are now available in more than 60 countries, compared to five markets in early 2018.
This article written by Tanya Dua was first published on BI Prime.