In the said report, Google revealed that advertising revenues on YouTube increased from USD 3.6 billion in the last quarter of 2018 to as much as USD 4.7 billion in the corresponding period, only a year later. Since 2017, Google has doubled its earnings on ads, which are shown, among others, to each of us who happens to watch something using a smartphone. In 2019, the American corporation earned $ 15.1 billion on this account. Sundar Pichai, head of Alphabet said that he is "happy" with this situation.
For the context, it's worth adding that Google purchased YouTube in 2006 for … $ 1.65 billion. That's a pretty good return on investment over the years, right?
The huge YouTube earnings from advertising are also followed by changes on the platform itself. In 2019, the site expanded its offer of ads that can not be immediately skipped. Last year, Google also added creators the ability to add ads to their videos – the same that the viewer can not turn off. The duration of this advertising format ranges from 15 to 20 seconds.
Since the beginning of this year, YouTube has also announced that it will limit advertising formats in those videos that are targeted at children. All this under a new policy aimed at improving the protection of young viewers. In 2019, Google paid $ 170 million in fine violations regarding the collection of data from minors using YouTube.
Looking at YouTube's development in the context of advertising and revenue, it can be safely assumed that Google will earn even more in 2020. Especially considering the company's aggressive policy related to promoting a monthly subscription to the YouTube Premium service.