1. Akshay Masand's Avatar

    In a recent interview with YouTube’s vice president of sales, Lucas Watson, disclosed that mobile ad sales have tripled over the past six months. This suggests that the removal of Apple’s ad-free version formerly part of the iOS mobile operating system was a key factor in driving revenue. Mobile ads contributed an estimated $350 million to YouTube’s revenue over the past half year according to Bloomberg.

    Although not mentioned by Watson, a key driver to the boom in ad revenue could possibly be Apple’s decision to deprecate its in-house YouTube app from iOS. In response to the move, Google launched a standalone YouTube app in Apple’s App Store just a few days before iOS 6 debuted in September of 2012, which freed the company to show ads ahead of popular videos. According to Watson:

    The commercial business has exploded. It’s a huge part of our business, and we know that’s where it’s headed.
    The publication cited estimates from Wedge Partners Corp, analyst Martin Pyykkonen, who said YouTube generates roughly 10% of Google’s total revenue. The analyst continued by estimating mobile ads account for 20% to 25% of YouTube’s ad sales, meaning the sector contributed as much as $350 million to the Internet Search giant’s reported $14 billion in sales last quarter. As part of its countdown to the App Store’s 50 billionth download, Apple announced the most-downloaded apps of all time in May, with YouTube showing up a the number four spot for free apps.

    It seems like Apple’s move away from Google actually ended up benefitting Google when it comes to mobile ad revenue.

    Source: Bloomberg

    Twitter: @AkshayMasand
    2013-06-08 03:45 AM
  2. JPili's Avatar
    But this app sucks... Safari ironically runs YouTube better.
    2013-06-13 02:39 PM