Alphabet, the parent company of YouTube, recently released its financial results for the first quarter of 2022 (ended March 31), including revenue generated from the video platform’s advertising business.
YouTube’s advertising revenue reached $6.87 billion in the first quarter of 2022, up 14% from the same quarter in 2021.
Alphabet generated total revenue of $68 billion in the first quarter of 2022, up 23%, or 26% in constant currency.
YouTube has generated $6.005 billion in Q1 2021up 49% year-over-year, meaning YouTube’s latest ad revenue growth has slowed significantly year-over-year.
Average analyst estimates predict that the platform’s ad business will grow about 25% year-over-year in the first quarter to about $7.4 billion.
Despite missing analyst expectations for its Q1 revenue, compared to other financial results recently released by major streaming services, the value of YouTube’s advertising business in Q1 is something to behold.
Last month (April 27), Spotify revealed in its first quarter results that it generated revenue of €2.661 billion ($2.98 billion) across its entire business in the quarter (including Premium subscriber revenue and advertising revenue), up 19% year-on-year at constant currencies.
Obviously enough, to $6.87 billionYouTube generated more than double the advertising than Spotify – which now has 182 million global subscribers – achieved across its business in the first quarter.
Parent company Alphabet didn’t say what YouTube generated from its subscriber base in the first quarter, but chief financial officer Ruth Porat said on the company’s earnings call that the platform video saw “substantial growth in YouTube non-advertising revenue driven by subscriber growth in YouTube Music and Premium and YouTube TV”.
YouTube’s global head of music, Lyor Cohen, has previously claimed that YouTube Music is “the fastest growing subscription service”.
“YouTube has grown significantly and become a central destination for entertainment.”
Sundar Pichai, Alphabet
Speaking on the company’s earnings call, Alphabet and Google CEO Sundar Pichai said YouTube “has experienced significant growth and has become a central destination for entertainment, learning and content. education” over the past two years.
Pichai also revealed that YouTube’s TikTok rival, Shorts, now averages more than 30 billion daily views, which he says is four times what he was seeing a year ago.
YouTube’s total advertising revenue for the 12 months of 2021 was $28.84 billion.
Sundar Pichai, CEO of Alphabet and Google, said: “The first quarter saw strong growth in search and cloud, in particular, which help both individuals and businesses as digital transformation unfolds. continues.
“We will continue to invest in quality products and services and create opportunities for our partners and local communities around the world.
Ruth Porat, CFO of Alphabet and Google, added, “We are pleased with first quarter revenue growth of 23% year over year.
“We continue to make thoughtful investments in Capex, R&D and talent to support long-term value creation for all stakeholders.”The music industry around the world