YouTube continues to lead in the streaming market, with advertising revenue increasing by 13% year over year, according to Alphabet, Google’s parent company, in its second-quarter earnings report released on Wednesday. This growth brings YouTube’s total ad revenue to $9.8 billion, up from $8.7 billion in the same period last year.
The company slightly exceeded analyst expectations, which had forecast YouTube’s Q2 ad revenue to be around $9.6 billion.
For years, YouTube has been striving to capture a larger share of television ad dollars, especially as its popularity in TV has grown, accounting for a significant portion of its viewership. A recent report from Nielsen indicated that YouTube held the largest share of TV viewing for three consecutive months, representing 12.4% of the total audience time spent watching television.
In response to YouTube’s success, rival streaming services, such as HBO Max and Amazon Prime Video, have ramped up their advertising strategies, increasing ad placements to stimulate growth. Additionally, Netflix is emerging as a key competitor to YouTube, particularly after it announced its intentions to double its advertising revenue within the year during the company’s earnings call last week. Although Netflix has not publicly disclosed its ad revenue figures, an analyst from Madison & Wall estimates that it’s around $3 billion.
Overall, Alphabet reported strong results, with total revenue of $96.4 billion in the second quarter, representing a 13% year-over-year increase.
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