YouTube reveals its revenue for the first time.
CEO Sundar Pichai announces the revenues Google’s Youtube receives quarterly for the first time.
Google’s YouTube advertising revenue gets more than $1billion a month in 2019. The company announced on Monday for the very first time how much money they get from their streaming services.
Alphabet is Google’s parent company. And they were not satisfied with the news. They said that it was not enough to satisfy the investors who sold the shares in Alphabet. When it announced the revenues for the last quarter it was below expectations. In doing so, the shares fell by 4% after the markets closed.
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Sundar Pichai is the chief executive of Alphabet. He has promised more transparency at the company. He wants the decision of founders Sergey Brin and Larry Page to step down from day-to-day operations.
Why is YouTube advertising so popular?
YouTube is a popular video search engine platform. And people have begun to love it. People spend a billion hours a day on YouTube which is more than Netflix and Facebook combined.
Youtube has over 30 million users per day. It has become a powerful branding and marketing tool. It is known that everyone can find success on the video platform.
Social videos are believed to receive nearly 1200% more shares than texts and or images. Google also claims that people who watch YouTube ads are 23 times more likely to visit or subscribe to the channel or watch more videos and more.
With a growing demand for YouTube, brands use this platform to advertise their products or services. In the hope of reaching a larger audience. Which YouTube offers.
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Youtube revenue crosses $1 billion
Pichai, who is the head of Alphabet, released its first quarterly earnings. He mentioned that YouTube had $15.15 billion in revenue in 2019. With $4.72 billion in the fourth quarter alone. This figure does not include YouTube’s non-advertising revenue like subscriptions. This is included in Google’s other revenue segments.
Google has a fast-growing cloud business. This cloud business is fighting for market share with Amazon and Microsoft. They had generated $8.2 billion in 2019 out of which $2.6 billion was generated in the fourth quarter. The overall revenues were up to 17.3% to 46 billion. The company made a profit of $10.6 billion over the quarter and $34.4 billion over 2019.
Pichai had something to add to this. He Said, “Our investments in deep computer science, including artificial intelligence, ambient computing, and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,”
Let us wait and see what else YouTube has in store for us in the coming years.