YouTube tripled its mobile ad sales thanks to the removal of its client from iOS 6

YouTube tripled its mobile ad sales thanks to the removal of its client from iOS 6
When Apple removed the YouTube app from iOS 6, it turned into a big break for Google. According to YouTube's vice president of sales Lucas Watson, over the last 6 months mobile ad sales for the streaming video site tripled to $350 million. The YouTube client on the Apple iPhone, which had been available on the iconic smartphone since its launch in 2007, was completely free of ads. With its new YouTube app available in the Apple App Store, Google has been able to sell mobile advertisements bringing in ad revenue to an application that originally had none. Watson said, "The commercial business has exploded. It’s a huge part of our business, and we know that’s where it’s headed." According to EMarketer, U.S. mobile video-ad sales are forecast to rise to $2.69 billion by 2017, a ten-fold increase from 2012.

Wedge Partners Corp. analyst Martin Pyykkonen says that his work shows that You Tube accounts for 10% of Google's revenue. Additionally, YouTube's mobile ad sales are believed to be 25% of YouTube's total mobile advertising. That would work out to the aforementioned $350 million in mobile ad revenue for YouTube over the last half-year. 250 million of YouTube's 1 billion viewers now access the site from a mobile device and more than half the smartphone users in the U.S. visited YouTube in March. According to Nielsen, 70 million Americans visited YouTube using a smartphone that month, up 42% from a year ago.

And more money should soon be rolling into Google's coffers now that it has come to an agreement with Microsoft over the development of an official YouTube app for the platform.


source: Bloomberg

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13 Comments

1. jroc74

Posts: 6023; Member since: Dec 30, 2010

Congrats Google. Seems some ppl dont really mind ads. I dont as long as they dont get in my way. (Angry Birds free versions on Android...looking at you...)

2. Cinnamon

Posts: 87; Member since: Jun 16, 2011

Angry birds is crap.

10. anywherehome

Posts: 971; Member since: Dec 13, 2011

Yes, congrats..... Apple's stupidity brings money to Google :-D

12. darkkjedii

Posts: 30678; Member since: Feb 05, 2011

Wow no countdown?

3. cripton805

Posts: 1485; Member since: Mar 18, 2012

Youtube sucks now. Forced ads are longer than the 50 second videos I watch and now theyre popping up half way through the video and if you fast forward!

4. pixelado

Posts: 130; Member since: Feb 16, 2013

That's iRony right there. Apple claims to "make the right choice on behalf of the user", while taking every chance they get to make Google (more specifically Android) look bad. Removing 'key' apps from the OS and then replacing them with half-baked alternatives (Maps), or no alternative at all (YouTube) didn't seem good choices at all, at least for the end user. Now it turns out Google is the one who benefits from all of this (or so it seems). If it's not irony, then I don't know what to call it.

5. clevername

Posts: 1436; Member since: Jul 11, 2008

Wonder why apple could get away with a self made client that didn't have ads but Microsoft can't.

6. taikucing unregistered

because of scroogled

7. affandi

Posts: 85; Member since: Jan 25, 2013

Very generous of you Apple! Never would have guessed it!

8. Leo_MC

Posts: 6132; Member since: Dec 02, 2011

Does Apple get 30% of that money?

9. bucky

Posts: 3771; Member since: Sep 30, 2009

If it wasn't for ad blocker I'd be pissed. Happily donated to that dev. Is there a lot of ads on androids YouTube now?

11. iSometimes

Posts: 57; Member since: Feb 16, 2011

The YouTube app by Google sucks on iOS. McTube is so much better. No ads and you can download videos. Also you can play the audio in the background if you want to switch apps, just like the old YouTube app. Even Jasmine is better than the Google YouTube app on iOS.

13. Ronny666

Posts: 128; Member since: Jun 08, 2013

Why do they need Youtube on iphones? Iphones are no longer "smart" as it used to be. It's just an accessory phone for old folks.

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