Google and YouTube Earnings 2019: What it Means for Internet Marketers
Alphabet (Google’s parent company) has released the net revenue for 2019 and the ad revenue for YouTube and Google in the fourth quarter. Alphabet products are estimated to have a net income of $162 billion for 2019. Google’s total ad revenue in 2019 was $134.8 billion, while YouTube generated $15 billion.
Alphabet exceeded analysts’ expectations in terms of annual earnings, even though the Q4 revenue was lower than expected. Alphabet’s revenue in Q4 was $46.07 billion, or $870 million below the estimated payment.
Alphabet revealed that the cloud service it offers has an annual revenue of $10 billion.
Comparing 2019 Ad Revenue
Google, Facebook, and Amazon are three of the most popular digital platforms in terms of advertising spending. Google’s net revenues for 2019 are almost twice as high as Facebook’s advertising service, which amounts to approximately $70 billion. Amazon, the third largest digital advertising platform, trails YouTube by about $900 million in revenue for 2019.
Digital Ad Spending is on the Rise
Alphabet might have struggled to achieve the projected figures for the Q4 of 2019. However, it is undeniable that digital advertising spending in 2019 is on the rise. This trend is expected to continue into 2020.
The traditional advertising budget is declining
YouTube now makes more money than US traditional media channels such as newspapers and magazines.
Google is working to improve its Ad Policy.
Facebook has been heavily criticized for its deceptive and disinformation ads. Google released a Policy to handle disaffirmation in its advertising platforms, such as YouTube. According to the company, “policies have been developed that prohibit deceptive and abusive practices such as voter suppression, misrepresentation, and other abuses in our products including Google Ads or Google Play.”
It’s the first time in 15 years that Alphabet has revealed YouTube’s ad revenue.
It is interesting to note that Alphabet is revealing its YouTube ad revenues for the first time since the acquisition of the company in 2006 for $1.65 Billion. It’s amazing to see how YouTube has grown as part of Google over the last decade and a quarter, becoming a $15 billion business.
YouTube makes a fifth of Facebook’s ad revenue and is six times larger than Twitch on Amazon
YouTube and Facebook are in a constant battle when it comes to video platforms. YouTube’s revenue was about one-fifth of Facebook’s in 2019.
Twitch, Amazon’s live-streaming video service, netted six times more revenue than YouTube.
Google announced in a separate press release that YouTube’s music and premium (ad-free) services now have over 20 million subscribers. Google also announced that its paid-TV service had 2 million subscribers.
Alphabet combined the revenue paid for the products into the “Other,” which netted $5.3 Billion in Q4.
YouTube’s phenomenal growth revealed
Comparing YouTube’s growth in the first three and fourth quarters gives us a glimpse into YouTube’s phenomenal growth. The platform generated $10 billion in revenue in the first quarter of 2019, whereas Q4 revenue is only $5 billion.
