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YouTube Ad Revenues Grow 4.4% YoY to $7.66 Billion in Q2

While several media companies, particularly those in linear TV, are experiencing a decline in ad sales, Alphabet’s YouTube is heading in the opposite direction, reporting a significant spike in ad revenue during the most recent quarter.

In the earnings report released on Tuesday (July 25), Alphabet disclosed that YouTube ads generated $7.665 billion in revenue, marking a notable 4.4% year-over-year increase. This result surpassed analysts’ expectations for Q2 and broke a three-quarter streak of revenue declines in YouTube ads.

Alphabet, as a whole, reported revenues of $74.6 billion for the quarter, reflecting a robust 7.1% year-over-year increase that comfortably exceeded analysts’ estimated figure of $72.8 billion, according to Refinitiv.

Furthermore, the company’s net income reached $18.37 billion, or $1.44 per share, showcasing an impressive 14.8% year-over-year increase.

Although Alphabet does not provide a detailed breakdown of revenue for its YouTube TV, YouTube Music, and YouTube Premium subscription services, the “Google Other” category, encompassing those products, recorded an impressive $8.14 billion in revenue, marking a remarkable 24.2% year-over-year surge.

During the earnings call, Philipp Schindler, Alphabet’s Senior Vice President and Chief Business Officer, attributed this growth to “strong growth in YouTube subscription revenues.”

Notably, last week, YouTube raised the prices for its YouTube Premium and YouTube Music services in the United States, a move that CFO Ruth Porat highlighted as a reflection of the products’ value.

Specifically, the price of YouTube Premium increased to USD $13.99 per month, up by two dollars from the previous $11.99 per month. Additionally, an annual subscription now costs $139.99, representing a $20 increase.

Similarly, YouTube Music, which is available as a standalone subscription or part of YouTube Premium, witnessed a one-dollar rise, with the monthly cost now set at $10.99.

As YouTube continues to witness growth in ad revenue and subscription services, the platform’s success serves as a bright spot in the media industry amid the challenges of declining ad sales for many traditional media companies.

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