YouTube

YouTube's Ad Revenue Soars 12% in Q3 2024, Surpassing $8.9 Billion

Maria Smith

Oct 31, 2024 — 2 min read

YouTube has once again proven its dominance in the digital video advertising space.

In a remarkable display of growth, the video-sharing giant reported a 12% year-over-year increase in ad revenue for the third quarter of 2024, reaching an impressive $8.9 billion.

This surge in revenue highlights YouTube's continued success and its strategic focus on enhancing living room experiences.

Google CEO Sundar Pichai

On the earnings call, said that it marks the first time YouTube’s combined ad and subscription revenue over four consecutive quarters surpassed $50 billion.

Key Highlights of YouTube's Q3 2024 Performance

Ad Revenue Growth: YouTube's ad revenue jumped by nearly $1 billion compared to Q3 2023, totaling $8.9 billion for the three months ending September 30.

Driving Factors: The growth was primarily fueled by brand advertising products, followed by direct response ad offerings.

Subscription Revenue: Google's subscription, platforms, and devices segment, which includes YouTube services, grew to $10.65 billion in Q3, up from $8.3 billion a year ago.

Milestone Achievement: For the first time, YouTube's combined ad and subscription revenue over four consecutive quarters surpassed $50 billion.

YouTube's Living Room Strategy

YouTube continues to focus on the living room as its "next frontier," with a strong emphasis on connected TV (CTV) experiences.

This strategy is paying off, as evidenced by:

A 30% year-over-year increase in creators making the majority of their YouTube revenue from TV screens.
The success of the Paris 2024 Olympics coverage on YouTube, with 35% of the 40 billion minutes of content viewed on TV screens.

Short-Form Content and Monetization

YouTube Shorts is showing impressive growth:

Over 70 billion YouTube Shorts are watched daily.
The platform recently extended the length of Shorts to 3-minutes.
Monetization of Shorts is improving, with the gap narrowing between Shorts and in-stream video advertising, especially in the U.S.

AI Integration with Google Deepmind

YouTube is not resting on its laurels. The platform is actively integrating AI tools to enhance creator experiences:

Google's Deepmind AI-based video generation model, Veo, will be integrated into YouTube Shorts for creators later this year.

YouTube Future Outlook

As YouTube continues to innovate and adapt to changing viewer preferences, its strong performance in Q3 2024 sets a positive tone for the platform's future growth and dominance in the digital video landscape

Alphabet 2024 Q3 Earnings Call:

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