YouTube’s business is growing, although perhaps not as fast as the market would like.
The parent company of the video streaming service, letterreported YouTube ad revenue of US$8.66 billion In the second quarter of this year, 13.0% increased compared with the same period last year.
Double-digit growth is a far cry from where YouTube was a year ago, when it reported an annual revenue decline.
Still, the latest ad revenue figures fell short of analysts’ expectations. US$8.93 billionAccording to a survey by CNBC citing StreetAccount.
The increase also marks a first-quarter slowdown in advertising revenue growth on YouTube. Annual growth of 20.9%exist US$8.09 billion.
The “Google Subscriptions, Platforms and Devices” portion of Alphabet’s revenue, which includes YouTube Music and YouTube Premium Subscribers, come in at US$9.31 billionup Annual increase of 14.37%.
During Alphabet’s earnings call after the close on Tuesday (July 23), Alphabet/Google CFO Ruth Porat The growth of this segment is attributed to YouTube TV and YouTube Music Premium.
She noted that the segment’s year-over-year growth would have been even stronger were it not for YouTube TV’s price increases, which are not included in this quarter’s year-over-year calculations.
“But at the core of it is people are interested in subscription services, and that acceptance is important. We’re very happy with that,” Porat said.
She added: “At YouTube, we’re pleased with our growth this quarter. We maintained healthy growth in watch time, continued to close the monetization gap in Shorts, and maintained continued momentum in connected TV, with brands benefiting in part from the shift in budgets from linear TV to The ongoing shift to digital television.
Alphabet executives’ comments on YouTube mostly focus on its video (rather than music) products, Google chief business officer Philip Schindler According to Nielsen data, YouTube “has been the most viewed streaming platform on U.S. television screens for 17 consecutive months.”
CEO of Alphabet/Google Sundar Pichai Noting that views of YouTube Shorts on connected TVs “more than doubled last year, we’re making it easier for creators to add subtitles and convert regular videos to Shorts.”
Shorts is YouTube’s bet on short videos and is widely seen as a response to the dominance of short-form videos. Tik Tok among younger audiences.
“During the quarter, we continued to see improved Shorts monetization, particularly in the U.S. We also saw very encouraging contributions from brand advertising on Shorts, where we launched in the fourth quarter of last year. advertising,” Schindler said on the earnings call.
“At its core is people interested in subscription products, and that’s a significant uptake. We’re very pleased with that.
Ruth Porat, Alphabet/Google
YouTube’s other big bet is shopping, a feature Google is launching via its e-commerce platform in 2022 Shopping This is essentially the online version of the cable TV shopping channel.
Schindler said audiences watched last year 30000000000 Hours of shopping-related videos 25% Increase watch time of videos that help people shop.
“While it’s still early days, shopping remains a key area of investment,” he said.
Schindler pointed out that Google has launched a number of updates to the shopping platform, including “product tags, which allow creators to mark products in their videos for viewers to discover and purchase,” product collections, as well as a new membership center and one-stop shop for Creators are able to find deals and promotional offers from brands and track their affiliate marketing revenue.
Overall, Alphabet’s profit was close to analysts’ expectations, with total revenue of $84.74 billionup 14% annual increase. in, $64.62 billion is advertising revenue (including Google search and other products), growing Annual increase of 11.14%.
Net profit growth Annual increase of 28.26%arrive $23.6 billionor $1.89 per share.
As of 11 a.m. ET on Wednesday — Alphabet’s first day of trading following its earnings release — the company’s stock price was falling 3.64%exist $176.94. YouTube’s decline was attributed to its earnings missing expectations.
Commenting on YouTube’s positioning in his opening remarks on Tuesday’s earnings call, Pichai said the platform is “focused on a clear strategy: Connecting creators to massive audiences so they can build successful businesses through advertising and subscriptions, while helping advertisers reach their audiences.” Wanted audience. “global music business
